What's New for First-Time Buyers in 2026 (And What's Always Been Worth Knowing)

Date Posted: August 26, 2026

What's New for First-Time Buyers in 2026 (And What's Always Been Worth Knowing)

 

If you last looked into first-time buyer programs a couple of years ago, it's worth another look — the toolkit has changed, and one recent addition is big enough that it could shift the math on buying new versus resale.

 

The big new one: GST/HST relief on new-construction homes

As of this year, eligible first-time buyers purchasing a newly built or substantially renovated home can recover the full 5% federal GST on homes priced up to $1 million, with the rebate phasing out gradually between $1 million and $1.5 million. On a $1 million new build, that's up to $50,000 back.

Ontario has layered a matching provincial rebate on top: for agreements signed between April 1, 2026 and March 31, 2027, eligible first-time buyers can also recover the full 8% provincial portion of the HST on qualifying new homes, using the same price thresholds. Combined, federal and provincial relief on a qualifying $1 million new build can add up to roughly $130,000 in tax savings.

The catch: this applies to new construction only — not resale — and the eligibility rules (purchase agreement dates, occupancy requirements, construction timelines) matter, so it's worth confirming the details on any specific property before assuming you qualify. With Ottawa's ongoing new-build activity in areas like Barrhaven, Kanata, and Riverside South, this is suddenly a much bigger part of the buy-new-vs-buy-resale conversation than it was a year ago.

 

The core toolkit hasn't gone anywhere

Two savings vehicles remain the backbone of most first-time buyer down payments, and they can be used together:

• First Home Savings Account (FHSA) — contribute up to $8,000 a year, $40,000 lifetime, with tax-deductible contributions and tax-free withdrawals for a qualifying first home.
• RRSP Home Buyers' Plan (HBP) — withdraw up to $60,000 tax-free from your RRSP, repayable over 15 years starting the second year after withdrawal.

Used together, that's up to $100,000 in tax-advantaged down payment funds per buyer — $200,000 for a qualifying couple. The FHSA needs to be open before you can contribute to it, so opening one early (even with a small first deposit) starts the clock even if you're a couple of years from buying.

 

Don't forget closing costs

Ontario's Land Transfer Tax rebate for first-time buyers is worth up to $4,000, which fully offsets the tax on homes priced up to roughly $368,000 and reduces it on anything above that. Worth noting for Ottawa buyers specifically: unlike Toronto, there's no municipal land transfer tax here, so the provincial rebate is the whole picture on this front — no second layer to stack on top.

 

Down payment minimums, as a reminder

• 5% on the portion of the price up to $500,000
• 10% on the portion between $500,000 and $999,999
• 10% minimum on homes priced $1,000,000–$1,499,999 (since the CMHC insurable price cap was raised to $1.5 million)
• 20% minimum at $1.5 million and above

First-time buyers purchasing an insured mortgage on a new build may also qualify for 30-year amortization, which can meaningfully lower monthly payments compared to the standard 25-year schedule.

 

The takeaway

None of these programs are new discoveries on their own, but the combination — especially with the new construction rebate now fully in effect — means the math for a lot of first-time buyers looks different than it did even a year ago. If you're saving toward a first home, or know someone who is, it's worth a conversation to see which of these actually apply to your situation.

Thinking about buying your first home, or helping a family member get started? Reach out and we'll map out exactly which programs you qualify for.