First-Time Buyers • June 2026
By Isha Grewal, Mortgage Agent Level 2 (FSRA) — serving Brampton, Mississauga and the wider GTA
Here's the part most people don't realize: the government programs for first-time buyers aren't an either/or. You can use them together. In 2026, a single first-time buyer in Ontario can combine the FHSA ($40,000) and the RRSP Home Buyers' Plan ($60,000) for up to $100,000 toward a down payment — and a couple buying together can stack up to $200,000. Add the tax credits and rebates on top, and the support is more generous than it's been in years.
The catch is that almost nobody explains how the pieces fit. Most articles list them separately, a few still quote outdated numbers, and a lot of first-time buyers in Brampton and Mississauga leave real money on the table simply because they didn't know what to combine or in what order.
I'm Isha Grewal, a mortgage agent here in the GTA, and I walk first-time buyers through this constantly. Let me lay out every program, then show you how they stack with a real example.
1. The First Home Savings Account (FHSA). This is the best of the bunch, full stop. You can contribute up to $8,000 per year, to a lifetime maximum of $40,000. Contributions are tax-deductible like an RRSP, the growth is tax-sheltered, and withdrawals for a qualifying first home are completely tax-free — and unlike the RRSP plan below, you never have to pay it back.
2. The RRSP Home Buyers' Plan (HBP). This lets you withdraw up to $60,000 from your RRSP, tax-free, toward your first home. (The limit was raised from $35,000 in 2024. It's $60,000 now.) The catch is that you repay it into your RRSP over 15 years.
3. The Home Buyers' Tax Credit (HBTC). A non-refundable federal tax credit worth about $1,500 in your pocket. You claim it on your tax return the year after you buy.
4. The First-Time Home Buyers' GST/HST Rebate (new for 2026). Under Bill C-4, eligible first-time buyers can get a rebate of up to $50,000 on the GST for a newly built home priced up to $1 million. Important: this applies to new construction, not resale homes.
5. Land transfer tax refunds. Ontario gives first-time buyers a refund of up to $4,000 on provincial land transfer tax, claimed at closing through your real estate lawyer.
And one to forget: The old CMHC First-Time Home Buyer Incentive was discontinued on March 31, 2024. It's gone. Any article telling you to apply for it is out of date.
Say Priya and Amar are buying their first home together in Brampton — a $900,000 detached in the Mount Pleasant area. Each has been putting money into an FHSA. Maxed over time, that's $40,000 each — $80,000 combined, tax-free toward the down payment. Both also have RRSPs, and each withdraws under the Home Buyers' Plan — up to $60,000 each, $120,000 combined (repayable over 15 years).
Between the two programs, they have access to $200,000 in tax-advantaged down-payment funds. On a $900,000 home, that's more than 20% down — which means they avoid CMHC mortgage default insurance entirely. At closing, their lawyer claims the Ontario land transfer tax refund. The year after, each claims the Home Buyers' Tax Credit.
No single program is dramatic on its own. Stacked, they add up to real buying power.
Max the FHSA first, then reach for the HBP. The FHSA never has to be repaid; the HBP does. Use the no-strings money before the loan-from-yourself money.
Mind the 90-day rule on the HBP. Money has to sit in your RRSP for at least 90 days before you can withdraw it. Don't dump cash in the week before closing.
Don't put a home-owning parent on title. Adding a parent who already owns a home to your title can wipe out your first-time-buyer land transfer tax refund. Talk to your lawyer before you sign.
The GST rebate is new builds only. If you're buying resale, it doesn't apply — don't budget for it.
Open the FHSA even if you're a year or two away. Contribution room and tax-free growth only start once the account exists.
Programs are only half the picture. The other half is the mortgage itself — how much you qualify for, which lender fits your situation, and how the down-payment stack changes your rate and insurance costs. That's the part I handle.
If you're a first-time buyer in Brampton, Mississauga or anywhere in the GTA, reach out and let's map your stack. You can get pre-approved with a quick call at 416-629-2006 — free, and no obligation. Also see the newcomer mortgage guide if you've recently arrived in Canada.
Yes. They're separate programs and can both be used for the same first home. A single buyer can combine the FHSA ($40,000) and the HBP ($60,000) for up to $100,000 toward a down payment, and a couple where both qualify can access up to $200,000 in total.
A single buyer can access up to $100,000 in tax-advantaged down-payment funds (FHSA plus HBP), plus a ~$1,500 tax credit and an Ontario land transfer tax refund up to $4,000. On a qualifying new build, the new federal GST rebate adds up to $50,000 more. A couple can roughly double the FHSA and HBP totals.
No. The HBP withdrawal limit was raised to $60,000 per person in 2024 (up from $35,000). A couple where both qualify can withdraw up to $120,000 combined. Articles still quoting $35,000 are out of date.
No. The First-Time Home Buyers' GST/HST Rebate (up to $50,000) applies to newly built or substantially renovated homes priced up to $1 million. Resale homes don't qualify for it, though they still qualify for the FHSA, HBP, tax credit and land transfer tax refund.
It was discontinued on March 31, 2024, and is no longer available. It was a shared-equity program where the government contributed 5–10% of the purchase price. Any guide still telling you to apply for it is outdated.
Free, no-obligation consultation. I'll show you exactly which programs you qualify for and how to combine them for maximum buying power.