Updated Checked by the Tax-Services.ca editorial team How we check
A first-time buyer paying $650,000 for a resale home in Toronto could line up about $12,247 in benefits. That’s $8,475 off land transfer tax, a $1,400 federal tax credit and $2,372 of income tax saved by an FHSA deduction. The Home Buyers’ Plan sits on top as access to up to $60,000 of your own RRSP money, which is a loan from yourself and not a gift.
Choose your province, switch each benefit on or off, and see the total.
Which benefits can a first-time buyer in Canada use?
Five programs matter: the FHSA deduction, the Home Buyers’ Plan, the home buyers’ tax credit, the GST/HST rebates on new homes, and land transfer tax relief in some provinces. Each has its own eligibility test, so the calculator lets you switch them off one at a time. On a new $820,000 home in British Columbia, the GST rebate alone reaches $41,000 and the land transfer exemption adds another $8,000.
How much is the first-time buyer tax credit worth in 2026?
The credit is worth $1,400 in 2026. It’s the $10,000 home buyers’ amount multiplied by the lowest federal rate of 14%. Older articles quote $1,500 because that rate used to be 15%. The credit is non-refundable, so it only reduces federal tax you owe, and two buyers who both qualify can split it. The Canada Revenue Agency: line 31270 page has the claim rules.
Which provinces give first-time buyers land transfer tax relief?
Ontario refunds up to $4,000, and Toronto adds up to $4,475 more. British Columbia exempts the full tax up to $500,000, gives $8,000 up to $835,000 and fades out by $860,000. Prince Edward Island exempts first-time buyers completely. Quebec offers a refundable credit of up to $5,875, claimed after closing. Alberta, Saskatchewan and the territories have no transfer tax, only a registration fee. The Ontario land transfer tax refund page covers that province’s rules, and the land transfer tax calculator prices the full bill.
Is the Home Buyers’ Plan free money?
No, it’s a loan from your own RRSP. You can withdraw up to $60,000 tax free to buy or build a home, and you repay it over 15 years or the unpaid part becomes income. The CRA currently describes a five-year delay before repayments start for first withdrawals made from 2026 to 2028. The calculator shows the amount apart from the total, along with the mortgage interest you avoid in the first year. Details are on the CRA page on the Home Buyers’ Plan.
How do the GST/HST rebates work on a new home?
The first-time buyer rebate returns the full federal 5% on a new home worth up to $1,000,000 and fades to nothing at $1,500,000. It covers agreements signed from 20 March 2025 to the end of 2030. Ontario adds its own rebate of the provincial part, up to $24,000, or up to $80,000 for agreements from 1 April 2026 to 31 March 2027. Resale homes get no GST rebate; the new housing rebate calculator has the detail. To budget the rest of the bill, use the closing costs calculator, and check your FHSA room on the FHSA calculator.
Where does this information come from?
Rules come from the CRA pages on the Home Buyers’ Plan, the home buyers’ amount and the first-time home buyers’ GST/HST rebate, plus the Ontario and BC land transfer tax pages; dollar values come from the site’s own engines. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Can both spouses claim the Home Buyers' Plan?
Yes. Each buyer can withdraw up to $60,000 from their own RRSP, so a couple can reach up to $120,000 if both qualify. Each person repays their own withdrawal over 15 years.
Does the FHSA count as a tax benefit or a savings tool?
It's both. Contributions are deductible, so $8,000 at $90,000 of income in Ontario saves $2,372 in tax. Withdrawals to buy a first home are tax free too, though the calculator values only the deduction.
Is the Quebec land transfer credit paid at closing?
No. You pay the duties in full at closing and claim a refundable credit of up to $5,875 afterwards. Revenu Quebec has offered an early payment option in 2026 for amounts over $1,000, so check the current rules.
Do I need a new home to get any GST rebate?
Yes. The GST/HST rebates apply to new or substantially renovated homes bought from a builder. A resale home carries no GST, so the credit and the transfer tax relief are the benefits that apply to it.