Question 1

What is the HST rebate for first-time buyers in Ontario in 2026?

Accepted Answer

Under Bill C-4, which received Royal Assent on May 27, 2025, the federal GST rebate on new homes was extended to a full 100% rebate on qualifying new homes up to $1,000,000, phasing out at $1,500,000. Combined with Ontario's provincial HST rebate (75% of the 8% PST portion, capped at $24,000), first-time buyers of new Ontario homes can save up to $130,000 in total HST on a $1M+ purchase. Use our free HST Rebate Calculator to see your exact savings based on your purchase price.

Question 2

How much can I save with the FHSA and Home Buyers' Plan combined?

Accepted Answer

A single first-time buyer can access up to $40,000 from a First Home Savings Account (FHSA) — tax-deductible contributions, completely tax-free on withdrawal — plus up to $60,000 from their RRSP via the Home Buyers' Plan (HBP), for a combined $100,000 in registered savings. A couple where both qualify can access up to $200,000 combined. The FHSA and HBP can be used on the same home purchase — they are not mutually exclusive.

Question 3

What is the Ontario Land Transfer Tax rebate for first-time buyers?

Accepted Answer

Ontario first-time home buyers receive a Land Transfer Tax refund of up to $4,000, applied automatically at closing by your real estate lawyer through the Teraview system. In the City of Toronto, buyers can stack an additional Municipal LTT rebate of up to $4,475 — for a combined maximum of $8,475. The provincial rebate fully eliminates LTT on homes priced at or below approximately $368,333.

Question 4

What closing costs should I budget for a new home in Ontario?

Accepted Answer

For a new build in Ontario, budget approximately 1.5–4% of the purchase price for closing costs beyond the down payment. Key items include: Ontario Land Transfer Tax (net of the $4,000 first-time buyer rebate), legal fees and disbursements ($1,500–$2,200), title insurance ($400–$900), development charges if uncapped ($20,000–$50,000+ — always cap these in your Agreement of Purchase and Sale), and PST on CMHC mortgage insurance premiums (if down payment is under 20%). The HST rebate on new builds under Bill C-4 significantly reduces your net purchase price relative to the gross contract amount.

Question 5

Do I need a lawyer to buy pre-construction in Ontario?

Accepted Answer

Yes, a real estate lawyer is a legal requirement in Ontario to close any property transaction. For pre-construction, their role is especially critical: they review the 40–120 page Agreement of Purchase and Sale during your 10-day cooling-off period, negotiate development charge caps, verify Tarion warranty enrollment, review the HST assignment clause, and represent you at final closing. Using a general-practice lawyer rather than a pre-construction specialist is one of the most common and costly mistakes Ontario first-time buyers make.

Question 6

What is the mortgage stress test in Canada in 2026?

Accepted Answer

Canada's mortgage stress test (OSFI B-20) requires all lenders to qualify mortgage applicants at the higher of 5.25% or the actual contract rate plus 2%. At current fixed rates of approximately 4.25–4.75%, this means buyers are stress-tested at 6.25–6.75% — materially higher than their actual payment rate. For new construction buyers with a 30-year amortization (available on insured mortgages for first-time buyers of new builds), this stress test ceiling is approximately 18–22% lower than what you could actually afford at your contract rate.

Find Out Exactly What Your Home Will Cost.

Phase 1: Compliance Check

Tracking the Money Pipeline.

Rebate Pipeline Status

Phase 2: HST Rebate Engine

GST/HST Rebate for New Homes: First-Time Buyer 2026 Strategy.

HST Rebate Engine

Total Rebate Potential

Full Reconciliation

Stack More Savings — All First-Time & New-Home Programs

Phase 3: Buying Power

Insured Mortgage Limit Increase & 30-Year Amortization 2026

Mortgage Affordability

Phase 4: Land Transfer Tax Audit

Calculate Your Exact LTT Liability.

Ontario Land Transfer Tax

Your Tax Receipt

Phase 5: Closing Day Audit

What Will You Actually Owe at Closing?

Closing Cost Estimator

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Property Adjustments

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