2026 First-Time Home Buyer Rebates, Tax Credits & Incentives in Canada
Claim the federal HBTC (Home Buyers' Tax Credit) on your tax return in the year you buy — it's worth about $750 in tax savings for eligible first-time buyers.
If you're buying a newly built home, apply for the GST/HST New Housing Rebate to recover a portion of the sales tax paid on the purchase price.
In 2026, insured mortgages now allow 30-year amortizations and cover homes up to $1.5 million — lowering monthly payments and expanding what first-time buyers can afford.
Stack federal and provincial programs together: Ontario, BC, and other provinces offer additional land transfer tax rebates that can save first-time buyers up to $8,475 more.
In Ontario, a separate temporary HST rebate stacks up to $80,000 of provincial HST relief on top — combined federal + provincial savings can reach ~$130,000 on a $1M new build (APS window April 1, 2026 – March 31, 2027).
The FHSA lets you contribute up to $8,000 per year with a lifetime maximum of $40,000.
The federal HBTC (Home Buyers' Tax Credit) provides a non-refundable tax credit calculated on a $5,000 amount at the lowest personal income tax rate, resulting in approximately $750 in tax relief.
2026 rule changes — 30-year amortizations for insured mortgages and a $1.5 million insurable home price cap — make it easier to qualify and reduce monthly payments.
Combine federal programs with provincial LTT rebates (Ontario $4K, BC up to full exemption under $500K, PEI, Toronto $4,475) to maximize total savings.
Expert Research FAQ
How can I help borrowers navigate down payment requirements?
FRFIs (federally regulated financial institutions) carefully check the source to ensure it's from the borrower's own resources. However, there are exceptions to consider. Here's the breakdown:
You can use gifted money for your down payment, just make sure you have a signed letter stating you don't have to pay it back.
Borrowing money for your down payment can make it harder to get approved for a mortgage.
You usually can't use incentives or rebates for your down payment unless it's part of a government-funded affordable housing program.
Lenders pay extra attention to mortgages within affordable housing programs.
How do lenders determine property value and LTV?
FRFIs must meticulously assess and adjust property value, factoring in potential price corrections. Rapid price increases demand even more conservative valuation approaches.
Lenders look at location, property type, and current market trends to assess a property's value.
If prices are rising quickly in your area, lenders will be extra careful when determining the value of the home you want to buy.
Your lender may have limits on how high the loan-to-value ratio can be, depending on the perceived risk of the property.
When calculating your loan-to-value ratio, the property value can't be higher than what you actually paid for it if you're using a mortgage to finance the purchase.
What role does mortgage insurance play in first-time homeownership?
CMHC and private mortgage insurers both offer products. It boils down to this:
Your lender needs to make sure your mortgage insurance company is financially stable and reliable.
Your lender should regularly check that your insurance provider is still a good fit throughout your mortgage.
You'll need to meet the mortgage insurer's standards for things like property appraisal and paperwork.
CMHC offers different types of mortgage insurance to help you buy, renovate, or invest in property.
You might save money on your mortgage insurance if you've used CMHC before and can transfer your existing coverage.
What documentation and income verification processes are involved?
FRFIs use comprehensive processes to ensure accuracy. Here's the gist:
You'll need to prove your income with official documents that are hard to fake.
Lenders will look at how steady your income is, not just temporary increases.
If you're self-employed, expect to provide tax returns, business records, and other income proof.
Be aware that getting a mortgage based on rental income can be tricky; lenders are cautious.
Lenders need lots of paperwork, including proof of employment, debts, down payment, and home insurance.
If someone co-signs your mortgage, their credit will be checked carefully too.
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Frequently Asked
How can I help borrowers navigate down payment requirements?
How do lenders determine property value and LTV?
What role does mortgage insurance play in first-time homeownership?
What documentation and income verification processes are involved?
What is the new First-Time Home Buyers' GST/HST Rebate (Bill C-4)?
How does the FTHB GST/HST Rebate stack with Ontario's enhanced HST rebate?
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