Guide for first-time buyers

First Time Home Buyer Guide for Ontario

A first-time home buyer in Ontario can use a refund of up to $4,000 of the provincial land transfer tax, the First Home Savings Account, the RRSP Home Buyers’ Plan and a federal tax credit. Each program defines “first-time” in its own way. In Ottawa there is no municipal land transfer tax to add.

Talk to our team Buying in Ottawa

Who qualifies

What makes you a first-time home buyer in Ontario

There is no single definition. Ontario and the Canada Revenue Agency each set their own test, and a buyer can pass one and fail another. The three that matter most:

For Ontario’s land transfer tax refund, you must never have owned a home, or an interest in one, anywhere in the world, be at least 18 and a Canadian citizen or permanent resident, and move in as your principal residence within nine months. If your spouse owned a home while you were spouses, neither of you qualifies.
To open a First Home Savings Account, you must not have lived, in the current calendar year or the four before it, in a home you owned or jointly owned as your principal residence, and the same goes for a home your spouse or common-law partner owned. You must also be a resident of Canada, an adult and 71 or younger in the year you open it.
For the federal home buyers’ amount, you and your spouse or common-law partner must not have lived in another home you owned in the year you buy or in any of the four years before.

So someone who sold a condo six years ago can open an FHSA and claim the home buyers’ amount, but cannot get Ontario’s land transfer tax refund, which looks back over a whole lifetime. Check each program before you count on it.

Land transfer tax

How the land transfer tax refund works on an Ottawa purchase

Ontario charges land transfer tax when the transfer of your home is registered. Its land transfer tax page names one municipal tax on top of it, the City of Toronto’s, so a buyer in Ottawa pays the provincial tax only. The rates, for agreements signed after November 14, 2016:

0.5% on the first $55,000 of the price.
1.0% from $55,000 to $250,000.
1.5% from $250,000 to $400,000.
2.0% above $400,000, and 2.5% above $2,000,000 on land with one or two single-family homes.

A worked example at the Ottawa average price

The Ottawa Real Estate Board (OREB) put the average residential sale price at $685,640 in September 2026. At those rates the provincial land transfer tax on that price comes to about $10,188. A qualifying first-time buyer’s refund of $4,000 brings it to about $6,188. This is arithmetic on the published rates, not a quote: the exact figure is worked out on your own price.

How you claim the refund

The refund covers the tax on the first $368,000 of a home’s value, which is why it stops at $4,000. It applies to resale and newly built homes alike. It can be claimed when the transfer is registered, through statements in the land transfer tax section of the electronic registration.

If it was not claimed then, you can apply to Ontario’s Ministry of Finance within 18 months of the registration date.

Saving

What the First Home Savings Account is

The First Home Savings Account, or FHSA, lets you save to buy or build a qualifying first home, with contributions that are generally deductible from your income and qualifying withdrawals that are tax-free. The Canada Revenue Agency sets the room:

$8,000 of participation room in the year you open your first FHSA.
$8,000 a year after that, within a lifetime FHSA limit of $40,000.
Room you do not use can be carried forward, within the CRA’s rules.

Your participation room starts in the year you open your first FHSA. The account is opened with a financial institution, and the CRA’s FHSA pages set out the rest of the conditions.

Your RRSP

How the Home Buyers’ Plan works

The Home Buyers’ Plan lets you withdraw money from your RRSP to buy or build a qualifying home, and pay it back to the RRSP over time. What the Canada Revenue Agency’s page says today:

The withdrawal limit is $60,000.
You repay it over 15 years.
Repayment normally starts in the second year after your first withdrawal. For a first HBP withdrawal between January 1, 2026 and December 31, 2028, the start is deferred to the fifth year.

You can use the Home Buyers’ Plan and an FHSA withdrawal for the same home, as long as you meet each one’s conditions when you withdraw. Ask your financial institution how a withdrawal is made.

Tax credit

What the $10,000 home buyers’ amount is

On your federal tax return, line 31270 lets you claim up to $10,000 for buying a qualifying home. It is a non-refundable credit: it reduces the federal income tax you owe, and it does not pay out on its own. The four-year lookback in the first section applies, with exceptions for people eligible for the disability tax credit.

New construction

Why a newly built home can come with GST/HST rebates

On a new home, two more rebates can apply to a first-time buyer, according to the Canada Revenue Agency’s first-time home buyers’ GST/HST rebate page:

The federal rebate of 100% of the GST, or the federal part of the HST, on a new home valued up to $1 million, and a reduced rebate between $1 million and $1.5 million.
The Ontario first-time home buyers’ rebate of up to $80,000 of the provincial part of the HST.
Ontario’s land transfer tax refund, which applies to new and resale homes alike.

Each has its own conditions. Read the CRA’s page with your lawyer before you sign with a builder, and see what our buying team does on new construction.

Down payment

How much down payment a first home needs

The Financial Consumer Agency of Canada sets the minimum down payment by price:

$500,000 or less: 5% of the price.
$500,000 to $1.5 million: 5% of the first $500,000, plus 10% of the part above $500,000.
$1.5 million or more: 20% of the price.

At the Ottawa Real Estate Board (OREB)’s September 2026 average of $685,640, that minimum works out to about $43,564. The FCAC adds that with less than 20% down, you will typically need mortgage loan insurance.

How much you can borrow, at what rate and on what terms is for a lender or a licensed mortgage professional to tell you, and we do not give mortgage advice. Ask for pre-approval in writing before you start viewing.

The steps

How to buy your first home in Ottawa, step by step

The steps below draw on the Real Estate Council of Ontario’s buyer’s checklist:

Budget for everything. RECO lists legal fees, land transfer tax, mortgage insurance and utility hookups, the cost of a home inspection and an appraisal or survey, and moving.
Talk to a lender. Get your pre-approval in writing so you know your price range before you view.
Choose a registered agent. Check their references, and confirm their registration on RECO’s public register.
Read the buyer representation agreement. Know how long it lasts and what each clause means before you sign.
Choose where. Compare Ottawa neighbourhoods and types of home, from Ottawa condos to townhomes.
Protect your offer. Where you can, make it conditional on financing and a home inspection, and set your limits before a competing-offer situation. RECO says to think twice before waiving a condition.
Close with a lawyer. In Ontario a real estate lawyer completes the closing, including registering the transfer of ownership, which is when the land transfer tax and your refund are dealt with.

RECO also suggests checking the age of the plumbing and electrical systems, and whether permits were taken out for renovations. RECO does not regulate home inspectors, so ask your agent and your inspector what the inspection covers.

Your agent

What to know before you sign with a buyer’s agent

A buyer representation agreement is a contract between you and a brokerage for real estate services and representation. RECO says it must be put in writing and presented to you as soon as possible, and that you should not expect services, like showings, without one. What RECO tells buyers to look for:

The expiry date, which must appear prominently on the first page.
The services, since there is no standard set, and a service not in the agreement should not be assumed.
The amount you pay, which you and the brokerage decide, and any holdover clause and its length.
The type of representation: the whole brokerage, or one or more named agents as your designated representative.

Before any service, an agent must give you the RECO Information Guide, written to help buyers and sellers make informed decisions. Who pays your agent, and how a seller can cover it, is in our guide to real estate commission in Ontario.

Work with us

Buying your first home in Ottawa with The Reality Group

Our buying a house in Ottawa page explains how we search, view and make offers with you, and Buyer Concierge Services sets out what our team adds. On our team, Sylvia Kachouh’s bio says she specializes in “first-time buyers, luxury properties, and investment real estate.”

Every agent on our team works through eXp Realty, Brokerage, and we give you RECO’s Information Guide before we provide any service. Call 613-704-6145, or read the latest Ottawa housing market update first. For the rules themselves, go to the source: Ontario’s refund page, the CRA’s FHSA pages and RECO’s buyer’s checklist.

Questions

Questions first-time home buyers in Ontario ask

Who is a first-time home buyer in Ontario?

It depends on the program. For Ontario’s land transfer tax refund, you must never have owned a home, or an interest in one, anywhere in the world. For the First Home Savings Account and the federal home buyers’ amount, the test is whether you lived in a home you or your spouse owned in the current year or the four years before. See who qualifies.

What perks do you get as a first-time buyer?

In Ontario: a refund of up to $4,000 of the provincial land transfer tax, the First Home Savings Account, RRSP withdrawals of up to $60,000 under the Home Buyers’ Plan, a federal tax credit on a $10,000 home buyers’ amount and, on a newly built home, GST/HST rebates. Each has its own conditions, set out on this page with its source.

Who is eligible for the first-time home buyer rebate in Ontario?

Ontario’s land transfer tax refund requires you to be at least 18, a Canadian citizen or permanent resident, never to have owned a home anywhere in the world, and to live in the home as your principal residence within nine months. If your spouse owned a home while you were spouses, neither of you gets the refund.

What’s the minimum down payment for a $300,000 house?

$15,000. The Financial Consumer Agency of Canada sets the minimum at 5% for a home of $500,000 or less, so a $500,000 home needs $25,000. Below 20% down, you will typically need mortgage loan insurance. What you can borrow is a question for a lender or a licensed mortgage professional.

What is the $10,000 tax credit for first-time home buyers in Canada?

The home buyers’ amount, line 31270 of your federal return. The Canada Revenue Agency lets you claim up to $10,000 for buying a qualifying home, as a non-refundable credit that reduces the federal income tax you owe.

Are there grants for first-time home buyers in Ontario?

The programs on Ontario’s and Canada’s own pages are a tax refund, two GST/HST rebates on new homes, two tax-advantaged ways to save and a tax credit, all on this page. A program offered by a lender or a builder is theirs to explain, in writing.

Does Ottawa have a municipal land transfer tax?

No. Ontario’s land transfer tax page names one municipal land transfer tax, the City of Toronto’s. In Ottawa you pay the provincial tax, and a qualifying first-time buyer can claim the refund of up to $4,000.

Can I use the FHSA and the Home Buyers’ Plan together?

Yes. The Canada Revenue Agency says you can withdraw from your RRSP under the Home Buyers’ Plan and make a qualifying FHSA withdrawal for the same home, if you meet the conditions of each at the time of each withdrawal.

What should I do first as a first-time buyer?

Work out the full budget, including legal fees, land transfer tax, mortgage insurance, an inspection and moving, then speak to a lender about pre-approval and choose an agent registered with RECO. The steps below follow RECO’s buyer’s checklist.

Talk to us

Buying your first home in Ottawa?

Tell us where and when you would like to buy, and an agent on our team will walk you through the steps and the programs that apply to you.

Tell us whether you are buying, selling or both, and a member of the team will get back to you. Or call 613-704-6145.

The Reality Group, eXp Realty, Brokerage, 75D Colonnade Road North, Nepean, ON K2E 0A8.

Sources

Each source below was read on 2026-11-01.

Government of Ontario, Land transfer tax refunds for first-time homebuyers (updated 2026-02-10)
Government of Ontario, Land transfer tax (updated 2026-10-29)
Government of Ontario, Calculating land transfer tax (updated 2026-04-22)
Canada Revenue Agency, First Home Savings Account (FHSA) (modified 2026-02-02)
Canada Revenue Agency, Opening your FHSAs (modified 2026-02-10)
Canada Revenue Agency, Contributing to your FHSAs (modified 2026-09-17)
Canada Revenue Agency, What is the Home Buyers’ Plan (HBP) (modified 2026-02-17)
Canada Revenue Agency, Line 31270, Home buyers’ amount (modified 2026-07-29)
Canada Revenue Agency, First-time home buyers’ (FTHB) GST/HST rebate (modified 2026-06-16)
Financial Consumer Agency of Canada, Saving for a down payment (page dated 2025-10-15)
Real Estate Council of Ontario (RECO), Signing a contract with a real estate brokerage
Real Estate Council of Ontario (RECO), Buyer’s checklist
Real Estate Council of Ontario (RECO), RECO Information Guide
Real Estate Council of Ontario (RECO), Make sure your real estate agent is registered
Real Estate Council of Ontario (RECO), Home inspections
Ottawa Real Estate Board (OREB), Ottawa Home Sales Hold Steady in September as New Listings Rise (published 2026-10-05)