Bajani Mortgage
Residential Purchases

First-Time Home Buyer Mortgage Solutions in Ontario

Navigating Ontario's high real-estate valuations requires stacking every government program and policy easement available to first-time buyers. Here is how each lever works in 2026.

The Tax-Free First Home Savings Account (FHSA)

The premier vehicle for downpayment accumulation. Individuals can contribute up to $8,000 per calendar year, up to a lifetime threshold of $40,000 ($80,000 for couples). Contributions directly reduce your taxable income like an RRSP, while asset growth and withdrawals remain completely tax-free like a TFSA. If you choose not to purchase, the balance can be rolled directly into an RRSP without eating into your existing contribution room.

The RRSP Home Buyers' Plan (HBP)

First-time buyers can withdraw up to $60,000 tax-free from their RRSP ($120,000 for a couple) to fund a home purchase, provided the money has resided in the account for at least 90 days. For withdrawals made between January 1, 2022, and December 31, 2025, the federal government extended a 5-year repayment grace period before the 15-year repayment schedule begins.

The New $1.5 Million Insured Cap

The ceiling for mortgage default insurance has been raised from $1M to $1.5 million. Buyers looking at homes priced between $1,000,000 and $1,500,000 no longer require a flat 20% downpayment. Instead, use the sliding minimum scale: 5% on the first $500,000 and 10% on the remaining portion up to $1.5M, retaining capital and accessing lower insured interest rates.

30-Year Amortizations for Insured Mortgages

All first-time home buyers — as well as any buyer purchasing a brand-new pre-construction or builder home — putting less than 20% down have access to a 30-year amortization period. This longer timeline lowers mandatory monthly payments and increases your maximum borrowing qualification space, subject to a minor 0.20% insurance premium surcharge.

Land Transfer Tax (LTT) Rebates

First-time buyers can claim a provincial LTT rebate up to $4,000 in Ontario, and an additional municipal rebate up to $4,475 if purchasing inside the city limits of Toronto.

First-Time Home Buyers' Tax Credit

A federal credit allowing you to claim $10,000 on your income tax return, translating to a direct $1,500 cash-back tax relief to help offset legal fees and moving expenses.

Notice: The federal First-Time Home Buyer Incentive (shared-equity program) was officially cancelled due to low consumer adoption; it is no longer an active option.

Eco-Plus Premium Rebates

Buyers of energy-efficient homes can claim a 25% cash-back refund on their mortgage default insurance premium through CMHC Eco Plus, Sagen's Energy-Efficient Housing Program, or Canada Guaranty Energy-Efficient Advantage — supported by an official EnerGuide rating report.

Run Your First-Time Buyer Numbers

Estimate your monthly payment and Ontario Land Transfer Tax — including the first-time buyer LTT rebate — before you book the call.

Plan Your Purchase

Calculate Your Ontario Mortgage Payments & Land Transfer Tax

Estimate your monthly mortgage payment and Ontario land transfer tax in seconds — for the GTA, KWC, Hamilton, London and Windsor.

Your Numbers

$

700000

$

140000

%

4.79

yr

25

Peel Region — Provincial LTT only. No municipal LTT.

Estimated Monthly Payment$3,190
Mortgage Amount$560,000
Ontario LTT$10,475
Total Land Transfer Tax$10,475

Estimates only. Not an offer of credit. Contact me for an exact quote.

Ontario Land Transfer Tax — What You Need to Know

When you buy a home anywhere in Ontario — including the GTA, London, Kitchener-Waterloo, Cambridge, Hamilton, and Windsor — you pay a one-time provincial Land Transfer Tax (LTT) on closing. If the property is inside the City of Toronto, you pay an additional Municipal LTT of roughly the same amount, effectively doubling the tax.

Provincial LTT Brackets

  • Up to $55,0000.5%
  • $55,001 – $250,0001.0%
  • $250,001 – $400,0001.5%
  • $400,001 – $2,000,0002.0%
  • Over $2,000,000 (residential)2.5%

First-Time Buyer Rebates

  • Ontario rebate: up to $4,000 — wipes out LTT on homes up to ~$368,000.
  • Toronto rebate: up to an additional $4,475 for properties inside the City of Toronto.
  • To qualify you must be 18+, a Canadian citizen or permanent resident, and have never owned a home anywhere in the world.
  • Regions outside Toronto — Mississauga, Brampton, London, Kitchener-Waterloo, Hamilton, Windsor, Niagara — pay only the provincial LTT.

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