What Changed for First-Time Buyers in 2025 and 2026
The GST rebate on new homes, 30-year insured amortizations, the $1.5M insured cap and the $60,000 Home Buyers' Plan: every 2025–2026 first-time buyer change.
Six changes in two years, all in the buyer's favour except the one withdrawal. The Home Buyers' Plan limit rose to $60,000 (April 2024). Insured 30-year amortizations opened to first-time buyers (August and December 2024). The insured price cap rose to $1.5 million (December 2024). The First-Time Home Buyers' GST Rebate on new homes took effect for agreements from March 2025 and became law in March 2026. Ontario enacted an enhanced $80,000 HST rebate for new-home agreements from April 2026. And the shared-equity First-Time Home Buyer Incentive ended in March 2024. On a $700,000 new build in Ontario, the changes are worth roughly $35,000 in GST, $300 a month in payment relief, and $25,000 more RRSP access.
Figures come from the CostToClose guided buying flow.
The changes, in dollars
$700,000 first-time purchase, 10% down, 4.49%:
| Change | Effective | Worth on this purchase |
|---|---|---|
| Home Buyers' Plan $35,000 → $60,000 per person | 16 Apr 2024 | $25,000 more RRSP access each ($50,000 for a couple) |
| 30-year insured amortization for first-time buyers | Aug/Dec 2024 | Payment $3,278 vs $3,591 (−$313/mo); income needed ≈ $147,000 vs $155,500 |
| Insured cap $1 million → $1.5 million | 15 Dec 2024 | Not binding at $700,000; opens 10%-down purchases up to $1.5M in Toronto and Vancouver |
| First-Time Home Buyers' GST Rebate (new homes) | Agreements from 20 Mar 2025 | $35,000 on a new build; $0 on resale |
| Ontario enhanced HST rebate (enacted) | Agreements 1 Apr 2026–31 Mar 2027 | $56,000 on a new build at this price (100% of the 8% provincial portion; the base rebate is $0 at $700,000) |
| FHSA (for context; 2023) | 1 Apr 2023 | $40,000 lifetime per person, tax-free |
| First-Time Home Buyer Incentive | Ended 31 Mar 2024 | Withdrawn |
This example was computed with the CostToClose calculator, 14 September 2026.
What did not change
- The stress test: contract plus 2% or 5.25%.
- Land transfer tax rebates in Ontario ($4,000), Toronto ($4,475) and BC ($8,000 on homes to $835,000), unchanged since 2017, 2017 and 2024 respectively.
- The CMHC premium table (4.00% / 3.10% / 2.80%), apart from the 0.20% 30-year surcharge.
- The 5% / 10% / 20% down payment tiers.
Where the changes matter most
New construction. The GST rebate and the Ontario enhancement together can remove all of the HST on a new home under about $1 million for an Ontario first-time buyer. Resale buyers get none of it.
Expensive markets. The $1.5 million cap lets a Toronto or Vancouver first-time buyer purchase at $1.2 million with $95,000 down (5% of $500,000 plus 10% of $700,000) instead of $240,000. The mortgage insurance premium on that is large, $44,000 at 4.00%, but the door is open.
Qualification at the margin. Thirty years lowers the income needed by about 5.5%, which converts a decline into an approval for many buyers near the limit.
Frequently asked questions
What new programs are there for first-time home buyers in Canada?
The First-Time Home Buyers' GST Rebate on new homes (2025–2026), 30-year insured amortizations (2024), the $60,000 Home Buyers' Plan (2024), and the FHSA (2023).
Is the First-Time Home Buyer Incentive still available?
No. The shared-equity program ended in March 2024.
Can first-time buyers get a 30-year mortgage with less than 20% down?
Yes, since December 2024, with a 0.20% premium surcharge.
Does the GST rebate apply to resale homes?
No. Only newly built or substantially renovated homes bought from a builder, owner-built homes, and co-op shares in new buildings.
Has the land transfer tax rebate changed?
No. Ontario's $4,000, Toronto's $4,475, BC's $8,000 and PEI's full exemption are unchanged.
Sources
- Department of Finance Canada, Budget 2024 (HBP limit); mortgage rule changes August and December 2024; First-Time Home Buyers' GST Rebate — checked 14 Sept 2026
- Ontario Ministry of Finance, enhanced HST new housing rebate announcement — checked 14 Sept 2026
- CMHC, First-Time Home Buyer Incentive discontinuation (March 2024) — checked 14 Sept 2026
General information, checked against the sources listed on the date shown. Not legal, tax, or mortgage advice. Rules change; confirm with your lender or the government office concerned.