If you're thinking about buying your first home in 2026, there’s some good news! There are several government incentives and programs designed to make homeownership more affordable.

From tax savings to rebates and down payment tools, these programs can significantly reduce the upfront cost of buying a home.

In this guide, we’ll break down the key first-time home buyer incentives available in April 2026, what they offer, and how you can take advantage of them.

1. The New GST/HST Rebate (Major 2026 Update)

One of the most significant updates for first-time (and new construction) buyers in 2026 is the newly introduced HST rebate on new homes in Ontario.

As of April 1, 2026, a joint federal and provincial initiative allows eligible buyers to reduce — and in many cases eliminate — the 13% HST on newly constructed homes. This change is designed to improve affordability and stimulate new housing development across the province.

What does this mean in real terms?
For buyers purchasing a new-build home priced up to $1 million, the rebate can cover the full 13% HST, resulting in savings of up to $130,000. For homes priced between $1 million and $1.5 million, buyers may still qualify for the maximum rebate, though the structure becomes more nuanced at higher price points. Even homes above that range may still receive partial relief.

Who qualifies?
The rebate applies to newly constructed or substantially renovated homes and is tied to the agreement of purchase and sale. It can also apply to certain unsold inventory, making it relevant not just for future builds but for homes currently available on the market.

Why it matters
For many buyers, especially those entering the market, HST has historically been a significant upfront cost when purchasing a new build. Reducing or eliminating this tax can make a meaningful difference in affordability, opening the door to properties that may have previously felt out of reach.
It’s also worth noting that this program is currently set as a time-limited incentive, running until March 31, 2027, meaning timing could play a role for buyers considering new construction.
Learn more about GST/HST housing rebates.

2. First Home Savings Account (FHSA)

The First Home Savings Account (FHSA) continues to be one of the most powerful tools for saving toward a down payment.

Key Benefits:
- Contribute up to $8,000 per year
- Lifetime contribution limit of $40,000
- Contributions are tax-deductible (like an RRSP)
- Withdrawals (including growth) are tax-free (like a TFSA)
Learn more about FHSA

3. RRSP Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) allows first-time buyers to withdraw funds from their RRSP to help with a down payment.

Updated Details:
- Withdraw up to $60,000 tax-free
- Repay over 15 years
- No tax penalty if repayments are made as scheduled

Pro Tip: You can combine the HBP with your FHSA, allowing you to significantly increase your available down payment.
Learn more about HBP

4. Land Transfer Tax Rebates (Ontario)

When buying a home in Ontario, you’re required to pay land transfer tax (LTT), but first-time buyers receive a rebate.

Ontario Rebate:
- Up to $4,000 refunded

Toronto Bonus:
- Additional rebate of up to $4,475 for purchases within the City of Toronto

Even with recent changes to Toronto’s tax structure, these rebates still apply and can help offset closing costs.
Learn more about Ontario land transfer tax rebates

5. First-Time Home Buyers’ Tax Credit (HBTC)

The First-Time Home Buyers’ Tax Credit is a federal program that provides a tax break after you purchase your home.

What you get:
- Claim $10,000 on your tax return
- Results in approximately $1,500 in tax savings
- While this doesn’t impact your upfront costs, it’s a helpful bonus when tax season comes around.
Learn more about HBTC

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How These Incentives Work Together

One of the biggest advantages for first-time buyers today is that many of these programs can be used together.

For example, a buyer could:
- Save using an FHSA
- Withdraw additional funds using the RRSP Home Buyers’ Plan
- Reduce upfront costs with the GST rebate (on new builds)
- Offset closing costs with the land transfer tax rebate
- Claim the tax credit after purchase
When combined, these incentives can make a significant difference in affordability.

Final Thoughts: What This Means for Buyers in 2026

With rising home prices and ongoing affordability challenges, these incentives are designed to help buyers bridge the gap into homeownership. However, knowing which programs apply to your situation, and how to use them effectively, is key.

If you're planning to buy your first home this year, understanding these tools can help you:
- Lower your upfront costs
- Maximize your savings
- Make more confident decisions