First-time buyer's guide to a new Ontario home

First-time buyers are the most advantaged group in the current Ontario market and the most exposed to its traps. Both halves of that are worth taking seriously.

What you can claim

Federal First-Time Home Buyers’ GST Rebate, up to $50,000. Full 5% GST on homes to $1,000,000, phasing out to zero at $1,500,000. More.

Ontario Enhanced New Housing Rebate, up to $80,000. Not restricted to first-time buyers, but you get it too. Window: agreements signed April 1, 2026 to March 31, 2027. More.

Ontario 5% top-up, up to $50,000, but reduced by your federal rebate, so as a first-time buyer it is usually offset. Why.

Land transfer tax rebates, up to $4,000 provincially, plus up to $4,475 in Toronto.

Combined HST relief reaches roughly $130,000 around a $1,000,000 purchase. How it stacks.

The test that disqualifies people

Read this carefully, because it costs buyers $50,000.

For the federal rebate, neither you nor your spouse or common-law partner can have lived in a home either of you owned, anywhere in the world, in the current calendar year or the four preceding years.

The disqualifier is occupation of a home you or your partner owned, not ownership alone.

• Never owned anything, but you live in your partner’s condo → disqualified.
• Never owned anything, partner owns a rental neither of you lived in → likely fine.
• Owned a home, sold six years ago, renting since → likely fine again.

The full trap.

And note: the land transfer tax first-time buyer test is not identical. You can pass one and fail the other. Ask your lawyer about each separately.

Why getting it wrong is worse than losing a rebate

Your price was almost certainly quoted net of HST rebate, with the rebate assigned to the builder. If CRA declines your claim, the builder bills you the amount at closing, up to $80,000 in certified funds, on the day, with no exit.

So “I think I qualify” is not good enough. Get it confirmed in writing by an accountant before you waive anything.

The money you actually need

On a $900,000 freehold townhome:

• Deposit: typically 10% = $90,000, in instalments over 12–24 months, first draft on signing. Structures
• Closing: land transfer tax ~$12,475 (less up to $4,000 rebate), plus levies, connections, Tarion enrolment and legal fees → roughly $25,000–$38,000. Breakdown
• Not included in the price: appliances, window coverings, fencing, rear landscaping → $25,000–$60,000. What’s excluded

Total beyond the mortgage: realistically $140,000 to $190,000 spread over several years.

The two risks that matter most to you

No cooling-off period on freehold. The agreement binds on acceptance. No ten days, no reconsidering. Read this.

Financing is arranged years later. Your pre-approval today does not bind any lender to fund a 2030 closing. If the home appraises below your price, you fund the gap in cash. First-time buyers with 10% down are the most exposed to this. Why.

What to do, in order

1. Confirm your first-time buyer status with an accountant, federal rebate and land transfer tax separately.
2. Get pre-qualified conservatively. Buy below your maximum, not at it.
3. Get represented before your first sales centre visit. It costs you nothing.
4. Identify a lawyer who will review the agreement before you sign.
5. Model the full cash requirement, not just the deposit.
6. Note the March 31, 2027 ENHR deadline, it runs on the signing date.

Start with an honest conversation about the numbers.