FSRA License #13667
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Overview
All the Ontario-specific fees, taxes, rebates, and federal programs in one place.
Buying in Ontario means navigating provincial land transfer tax, Toronto municipal tax, federal programs, and ongoing rule changes. This guide consolidates everything - with links to calculators and our first-time buyer service.
Federal Programs (Available in Ontario)
| Program | What You Get | 2026 Limit |
|---|---|---|
| FHSA (First Home Savings Account) | Tax-free savings for down payment - contributions are tax-deductible; withdrawals for a first home are tax-free | $8,000/year, $40,000 lifetime |
| RRSP Home Buyers' Plan (HBP) | Tax-free RRSP withdrawal for first home | $60,000 per person |
| FHSA + HBP combo | Combined down payment power | Up to $100,000 per person |
| First-Time Home Buyers' Tax Credit (HBTC) | Non-refundable federal credit | $1,500 tax savings (claim up to $10,000 on line 31270) |
| 30-year amortization | Lower monthly payments on insured mortgages | Available on all insured mortgages |
| $1.5M insured cap | CMHC/default insurance on higher purchase prices | Up to $1.5M purchase price |
First-Time Buyer Eligibility (Federal Programs)
Generally, you qualify if you have not owned a home you lived in during the past 4 calendar years (or 4 years for HBP). Provincial rebate rules vary - see below.
→ First-time home buyer service · Pre-approval
Ontario Provincial Benefits
| Benefit | Amount | Who Qualifies |
|---|---|---|
| Ontario LTT rebate | Up to $4,000 | First-time buyer, Canadian citizen or permanent resident |
| Toronto municipal LTT rebate | Up to $4,475 | First-time buyer, property within City of Toronto |
| Combined Toronto savings | Up to $8,475 | Both criteria met |
| Ontario new housing rebate | Up to $24,000 | New builds - HST rebate on new construction |
| Non-Resident Speculation Tax (NRST) | 25% surcharge | Foreign nationals - citizens and PRs exempt |
| PST on CMHC premium | 8% of insurance premium | High-ratio insured mortgages in Ontario |
→ Land Transfer Tax Calculator
Ontario Taxes You'll Pay at Closing
| Tax / Fee | Applies To | Estimate Tool |
|---|---|---|
| Provincial land transfer tax | All Ontario purchases | LTT Calculator |
| Toronto municipal LTT | Toronto properties only | LTT Calculator |
| PST on CMHC/default insurance premium | Insured mortgages (down payment < 20%) | CMHC Calculator |
| Legal fees & disbursements | All purchases | Closing Costs Calculator |
| Title insurance | Most purchases | Budget $200-$400 |
| Property tax adjustment | All purchases | Prorated at closing |
| Property tax (ongoing) | All homeowners | Budget $3,000-$8,000/year in GTA |
| Purchase Price Portion | Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 - $250,000 | 1.0% |
| $250,000 - $400,000 | 1.5% |
| $400,000 - $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Toronto charges an additional municipal land transfer tax at the same bracket rates - effectively doubling LTT for Toronto buyers.
Canada-Wide Provincial Comparison
Programs vary significantly by province. Ontario buyers benefit from strong federal programs plus provincial LTT rebates, but pay more at closing than Alberta or Saskatchewan (which have no land transfer tax).
| Province | Land Transfer Tax | First-Time Buyer Rebate |
|---|---|---|
| Ontario | Yes - progressive rates | Up to $4,000 provincial; up to $4,475 Toronto |
| British Columbia | Property Transfer Tax | Full exemption up to $500K; partial to $835K |
| Alberta | No LTT - registration fees only (~$200) | N/A |
| Saskatchewan | No LTT | Provincial income tax credit up to $1,575 |
| Manitoba | Yes | First-time buyer exemption on first $150K |
| Quebec | Welcome tax | Partial municipal rebates (e.g., Montreal) |
| PEI | 1% transfer tax | Full exemption for qualifying first-time buyers |
| Nova Scotia | Deed transfer tax | Partial rebates vary by municipality |
2026 Rule Changes That Matter
1. 30-year amortization on all insured mortgages - reduces monthly payment vs. 25-year 2. $1.5M insured cap - buy higher without 20% down payment 3. RRSP HBP increased to $60,000 per person (repay over 15 years) 4. FHSA fully established - tax-free growth + tax-free withdrawal for qualifying first home 5. Saskatchewan FTHB credit increased to $15,000 base (max benefit $1,575) - relevant for cross-border comparison
Planning Timeline for First-Time Buyers
| When | Action |
|---|---|
| 3-5 years before buying | Open FHSA; contribute up to $8,000/year |
| Ongoing | Maximize RRSP contributions (for future HBP) |
| 91+ days before HBP withdrawal | Funds must be in RRSP for minimum period |
| At purchase | Withdraw FHSA + HBP for down payment |
| After closing | Claim HBTC and Ontario LTT rebate on tax return |
Frequently Asked Questions
Related Tools & Services
- Land Transfer Tax Calculator
- Closing Costs Calculator
- CMHC Insurance Calculator
- Affordability Calculator
- Get Pre-Approved
Can I use both FHSA and RRSP HBP?
Yes - combine for up to $100,000 per person in tax-free down payment funds, subject to individual program limits and eligibility.
Do I pay land transfer tax on a new build?
Yes - LTT applies to new construction purchases in Ontario. You may also qualify for the Ontario new housing HST rebate on new builds.
What about the Non-Resident Speculation Tax?
A 25% surcharge applies to foreign national purchases in Ontario. Canadian citizens and permanent residents are exempt.
Do both spouses need to be first-time buyers for the rebate?
In Ontario, if either party has owned a home before, the rebate is typically reduced - often to half the standard amount. Rules vary; use our LTT calculator for your scenario.
Is the First-Time Home Buyers' Tax Credit refundable?
No - it is a non-refundable federal tax credit worth up to $1,500 in tax savings.
Does Alberta have better closing costs?
Alberta has no provincial land transfer tax - only nominal registration fees. Ontario buyers in the GTA should budget significantly more for LTT, especially in Toronto.
Black Knight Capital Inc. · FSRA License #13667 · OAC. For general education only - not tax, legal, or lending advice. Not a commitment to lend.
