First-Time Home Buyer Programs in Ontario: Complete 2026 Guide for Filipino Newcomers
Last updated: February 7, 2026
Introduction: Why This Guide Matters for Filipino Newcomers
Buying your first home in Canada is one of the most exciting milestones for Filipino newcomers. After years of hard work, whether as a caregiver, healthcare professional, IT specialist, or in any other field, owning a home in Ontario represents stability and a brighter future for your family.
But the process can feel overwhelming. Between unfamiliar tax programs, complicated mortgage rules, and the sheer cost of housing in the Greater Toronto Area (GTA), many Filipino first-time buyers miss out on thousands of dollars in government incentives simply because they do not know what is available.
This guide breaks down every major program and incentive available to first-time home buyers in Ontario in 2026, with practical advice tailored specifically for Filipino newcomers. As of January 2026, the average home price in the GTA has dipped below million to ,289, making homeownership more accessible than it has been since 2021.
Quick Summary of Savings: A first-time buyer in Toronto purchasing a ,000 home could save a combined ,000 to ,000+ through the programs listed below, depending on eligibility. Read on to learn how to claim every dollar you are entitled to.
1. First Home Savings Account (FHSA) — The Newest Program
The First Home Savings Account (FHSA) is Canada’s newest tool for first-time home buyers, launched in April 2023. It combines the best features of an RRSP and a TFSA: your contributions are tax-deductible (like an RRSP), and your withdrawals for a home purchase are completely tax-free (like a TFSA).
How the FHSA Works
| Feature | Details |
|---|---|
| Annual Contribution Limit | ,000 per year |
| Lifetime Contribution Limit | ,000 |
| Carry-Forward Room | Up to ,000 of unused room carries to the next year |
| Tax Deduction | Contributions reduce your taxable income |
| Withdrawals for Home Purchase | 100% tax-free (no repayment required) |
| Account Duration | Must close by the 15th anniversary of opening, or age 71, whichever comes first |
| Eligibility | Canadian resident, age 18+, first-time home buyer (not owned a home in the past 4 years) |
Why This Matters for Filipino Newcomers
If you arrived in Canada recently, opening an FHSA should be one of your first financial steps. Even if you are not ready to buy a home yet, starting to contribute now means:
- Immediate tax savings — every ,000 you contribute reduces your taxable income, saving you ,200 to ,000+ in taxes depending on your bracket
- Tax-free investment growth — your money grows inside the account without any tax
- Can be combined with the Home Buyers’ Plan (HBP) — use both FHSA and HBP for maximum savings
Pro Tip: If you opened your FHSA in 2025 but did not contribute the full ,000, you can carry forward up to ,000 of unused room to 2026. That means you could contribute up to ,000 in 2026 and claim a significant tax deduction.
2. Home Buyers’ Plan (HBP) — Withdraw from Your RRSP Tax-Free
The Home Buyers’ Plan (HBP) allows first-time home buyers to withdraw up to ,000 from their RRSPs to purchase or build a qualifying home, without paying tax on the withdrawal. If you are buying with a spouse or partner who also qualifies, you can each withdraw ,000 for a combined total of ,000.
Key HBP Rules for 2026
| Feature | Details |
|---|---|
| Maximum Withdrawal | ,000 per person (,000 per couple) |
| Repayment Period | 15 years (starts 5th year after first withdrawal for 2022–2025 withdrawals) |
| Annual Repayment | 1/15th of the total amount withdrawn each year |
| Eligibility | Canadian resident, first-time buyer (not owned a home in the past 4 years) |
| RRSP Holding Period | Funds must be in your RRSP for at least 90 days before withdrawal |
Important: Unlike the FHSA, HBP withdrawals must be repaid to your RRSP over 15 years. If you miss a repayment, that amount is added to your taxable income for the year. Plan your repayments carefully.
FHSA + HBP: The Power Combination
You can use both the FHSA and the HBP for the same home purchase. Here is how a Filipino couple could maximize their savings:
| Source | Person 1 | Person 2 | Total |
|---|---|---|---|
| FHSA (max over time) | ,000 | ,000 | ,000 |
| HBP (RRSP withdrawal) | ,000 | ,000 | ,000 |
| Combined Total | ,000 | ,000 | ,000 |
That is up to ,000 in tax-advantaged funds for your down payment. For many Filipino families, this could cover a 20% down payment and avoid costly mortgage insurance entirely.
3. First-Time Home Buyers’ Tax Credit (HBTC)
The Home Buyers’ Tax Credit (HBTC) is a non-refundable federal tax credit that provides up to ,500 back when you file your taxes in the year you purchase your first home.
How It Works
- Claim ,000 on line 31270 of your tax return
- The credit is calculated at the lowest personal tax rate (15%), giving you up to ,500
- You must be a first-time home buyer (have not owned a home in the past 4 years)
- The home must be registered in your name (or your spouse’s name) and located in Canada
- You must intend to occupy the home as your principal residence within one year of purchase
Easy to Claim: This credit is straightforward. When you file your taxes after buying your home, simply enter ,000 on line 31270. Your tax software will calculate the credit automatically. Do not forget this free ,500!
4. Ontario Land Transfer Tax Refund for First-Time Buyers
When you buy property in Ontario, you pay a provincial Land Transfer Tax (LTT) at closing. First-time home buyers can get a refund of up to ,000.
Ontario LTT Rates (2026)
| Purchase Price Portion | Tax Rate |
|---|---|
| First ,000 | 0.5% |
| ,001 to ,000 | 1.0% |
| ,001 to ,000 | 1.5% |
| ,001 to ,000,000 | 2.0% |
| Over ,000,000 | 2.5% |
First-Time Buyer Refund
- Maximum refund: ,000 (covers full LTT on homes up to ,000)
- For homes over ,000: you still receive the full ,000 refund but pay the remaining LTT
- Eligibility: Must be at least 18, a Canadian citizen or permanent resident, must move into the home within 9 months, and must never have owned a home anywhere in the world
- How to apply: Your real estate lawyer applies for the refund at the time of closing
Example: Ontario LTT on a ,000 Home
| Portion | Rate | Tax |
|---|---|---|
| First ,000 | 0.5% | |
| ,001–,000 | 1.0% | ,950 |
| ,001–,000 | 1.5% | ,250 |
| ,001–,000 | 2.0% | ,000 |
| Total Ontario LTT | ,475 | |
| First-Time Buyer Refund | -,000 | |
| Net Ontario LTT Payable | ,475 |
5. Toronto Municipal Land Transfer Tax Rebate
If you are buying in the City of Toronto, you pay an additional Municipal Land Transfer Tax (MLTT) on top of the provincial LTT. This effectively doubles your land transfer tax costs. However, first-time buyers can claim a rebate.
Current Toronto MLTT Rebate (2026)
- Maximum rebate: ,475 (covers full MLTT on homes up to ,000)
- For homes over ,000: you receive the ,475 rebate and pay the remaining MLTT
March 2026 Update — Expanded Rebate: Toronto City Council has approved an expansion of the first-time buyer MLTT rebate. Effective March 1, 2026, the rebate will provide the equivalent of a full rebate for first-time purchasers of residential properties valued up to ,000 (previously ,000). This is a major improvement that will save Toronto first-time buyers thousands of additional dollars.
Combined LTT Savings in Toronto (First-Time Buyer)
| Tax/Rebate | ,000 Home (Before March 2026) | ,000 Home (After March 1, 2026) |
|---|---|---|
| Ontario Provincial LTT | ,475 | ,475 |
| Ontario First-Time Refund | -,000 | -,000 |
| Toronto MLTT | ~,475 | ~,475 |
| Toronto First-Time Rebate | -,475 | -,475 (expanded) |
| Total LTT Payable | ~,475 | ~,475 |
| Total Savings from Rebates | ,475 | ,475 |
Important for Toronto Buyers: If you are planning to purchase in Toronto, waiting until after March 1, 2026 to close could save you thousands in MLTT thanks to the expanded rebate. Talk to your real estate lawyer about timing your transaction.
6. GST/HST New Housing Rebate
If you are buying a newly built home (from a builder, not a resale home), you may be eligible for a GST/HST rebate. There are two programs to be aware of:
Existing GST/HST New Housing Rebate
- Federal portion: Rebate of 36% of the GST paid, up to a maximum of ,300
- Full rebate available for homes priced up to ,000
- Rebate phases out between ,000 and ,000
- No rebate for homes priced above ,000
- Ontario portion: Additional rebate of 75% of the provincial portion of HST, up to ,000
NEW: First-Time Home Buyer GST/HST Rebate (Proposed)
Major New Incentive: The federal government has proposed a first-time home buyer GST/HST rebate that would eliminate the entire 5% federal GST on new homes valued up to million. This could mean savings of up to ,000 on a new build. The rebate phases out linearly between million and .5 million. This applies to agreements of purchase and sale entered into on or after May 27, 2025.
Note: The first-time home buyer GST/HST rebate is proposed legislation and has not yet received Royal Assent. The CRA will not process claims until the legislation is passed. However, if you are buying a new-build home, this is something to discuss with your lawyer.
7. CMHC Insured Mortgage — Buy with Just 5% Down
Many Filipino newcomers assume they need a 20% down payment to buy a home. That is not true. With a CMHC-insured mortgage, you can buy with as little as 5% down.
Minimum Down Payment Requirements (2026)
| Purchase Price | Minimum Down Payment |
|---|---|
| ,000 or less | 5% of purchase price |
| ,001 to ,499,999 | 5% of first ,000 + 10% of the remainder |
| ,500,000 or more | 20% (no CMHC insurance available) |
Down Payment Examples
| Home Price | Minimum Down Payment | Amount |
|---|---|---|
| ,000 | 5% | ,000 |
| ,000 | 5% + 10% | ,000 |
| ,000 | 5% + 10% | ,000 |
| ,289 (GTA avg.) | 5% + 10% | ,329 |
Key Benefits for First-Time Buyers in 2026
- 30-year amortization: First-time home buyers can now amortize their mortgage over 30 years (instead of the standard 25 years), lowering monthly payments
- Insured mortgage price cap raised to .5 million: You can now use CMHC insurance for homes up to .5 million (previously million)
- Lower stress test qualification: Insured mortgages often come with slightly lower interest rates
Did You Know? CMHC mortgage insurance is added to your mortgage balance and paid over the life of the loan. It is not an upfront out-of-pocket cost. This makes it much easier for newcomers to get into the market sooner.
8. Special Mortgage Programs for Newcomers
Canadian banks offer special mortgage programs designed specifically for newcomers who may not have an established Canadian credit history. As a Filipino newcomer, you should explore these programs:
Major Bank Newcomer Mortgage Programs (2026)
| Bank | Program | Eligibility Window | Key Features |
|---|---|---|---|
| RBC | Newcomer Mortgage | PR within 12 months; Work Permit within 48 months | As low as 5% down; limited credit history OK; foreign income considered |
| TD | New to Canada Mortgage | PR within 5 years; Work Permit within 2 years | 3+ months Canadian employment; flexible credit requirements |
| CIBC | Newcomer Mortgage | PR within 5 years; Work Permit 12+ months | Limited credit history OK; Canadian income required |
| Scotiabank | StartRight Program | PR or Temporary Resident within 5 years | Down payment must be from own funds (no gifts); credit building tools |
| BMO | NewStart Program | PR within 5 years; Work Permit holders | 130-day rate hold (longest among big banks); flexible qualifications |
Tips for Filipino Newcomers Applying for a Mortgage
- Get pre-approved early: Even before you start house hunting, get a mortgage pre-approval. This tells you exactly how much you can afford.
- Build Canadian credit fast: Get a secured credit card, use it for small purchases, and pay it off in full every month. Even 3–6 months of credit history helps.
- Gather your documents: Have your employment letter, pay stubs, bank statements, and proof of down payment ready. If you have a 35%+ down payment, you may qualify without Canadian credit history.
- Consider bringing 35% down: With a 35% down payment, RBC and other banks may approve your mortgage with minimal Canadian credit or employment history. This is especially useful if you are transferring savings from the Philippines.
- Shop around: Do not just go to one bank. Compare rates from at least 3 lenders, including a mortgage broker who can access rates from multiple lenders.
9. Step-by-Step: Buying Your First Home in Ontario
Here is a simplified roadmap for Filipino first-time home buyers in Ontario:
Step 1: Get Your Finances in Order
- Open an FHSA and start contributing
- Build your credit score (aim for 650+)
- Save for your down payment (minimum 5%, ideally 20%)
- Budget for closing costs (typically 1.5–4% of the purchase price)
Step 2: Get Mortgage Pre-Approval
- Visit your bank or a mortgage broker
- Ask about newcomer mortgage programs
- Get a pre-approval letter (typically valid for 90–130 days)
Step 3: Find a Real Estate Agent
- Choose an agent familiar with your target neighbourhoods
- Filipino-speaking agents may help with communication if needed
- Your agent will help you search, negotiate, and submit offers
Step 4: Make an Offer and Negotiate
- Submit an Agreement of Purchase and Sale (APS)
- Include conditions: financing, home inspection, lawyer review
- Pay a deposit (typically 5% of the purchase price, held in trust)
Step 5: Hire a Real Estate Lawyer
- Your lawyer reviews the Agreement of Purchase and Sale
- Conducts title search and ensures the property is free of liens
- Handles land transfer tax payments and applies for first-time buyer refunds
- Registers the property in your name on closing day
Step 6: Fulfill Conditions
- Complete home inspection
- Finalize mortgage approval with your lender
- Arrange home insurance (required by your lender)
- Waive conditions once everything is satisfactory
Step 7: Closing Day
- Your lawyer handles the transfer of funds and documents
- You sign mortgage documents and title transfer
- Pay closing costs (land transfer tax minus rebates, legal fees, adjustments)
- Receive your keys
Typical Closing Costs Breakdown
| Cost Item | Estimated Amount |
|---|---|
| Land Transfer Tax (Ontario) | Varies (see calculator above) |
| Toronto MLTT (if in Toronto) | Varies (see calculator above) |
| Legal Fees | ,500–,500 |
| Title Insurance | – |
| Home Inspection | – |
| Appraisal Fee | – (sometimes covered by lender) |
| Property Tax Adjustment | Depends on closing date |
| Utility Connection Fees | – |
| Moving Costs | –,000 |
10. Common Mistakes Filipino Newcomers Make When Buying a Home
After helping many Filipino clients with their real estate transactions, we have seen some common mistakes that first-time buyers should avoid:
Mistake 1: Not Opening an FHSA Right Away
Many newcomers do not know about the FHSA or delay opening one. Every year you wait is ,000 in tax-deductible contribution room you cannot get back. Open an FHSA as soon as you arrive in Canada, even if buying a home is years away.
Mistake 2: Not Claiming the Ontario LTT Refund
Some buyers do not realize they qualify for the ,000 provincial refund (and the ,475+ Toronto rebate). Your real estate lawyer should handle this at closing, but make sure you confirm it. At JCA Law Office, we always ensure our clients receive every rebate they are entitled to.
Mistake 3: Sending Money from the Philippines Without Proper Documentation
If family members in the Philippines are gifting you money for your down payment, you need a signed gift letter confirming the funds are a gift (not a loan). Your lender will also want to see the paper trail of funds entering Canada. Keep all wire transfer receipts and bank statements.
Mistake 4: Buying More Home Than You Can Afford
Just because the bank pre-approves you for a certain amount does not mean you should spend that much. Factor in property taxes, utilities, maintenance, and your existing obligations (such as sending money to family in the Philippines). A general rule: your total housing costs should not exceed 30–35% of your gross household income.
Mistake 5: Skipping the Home Inspection
In competitive markets, some buyers waive the home inspection to make their offer more attractive. This is risky. A inspection could save you tens of thousands in unexpected repairs. Always include an inspection condition in your offer if possible.
Mistake 6: Not Hiring a Real Estate Lawyer Early Enough
In Ontario, you must have a lawyer to complete a real estate transaction. Do not wait until the last minute to find one. Engage your lawyer before you start making offers so they can review your Agreement of Purchase and Sale and advise you on any red flags.
Mistake 7: Not Understanding the Difference Between Freehold and Condo
Many Filipino newcomers come from the Philippines where condominiums are popular but work differently. In Ontario, condo ownership means paying monthly maintenance fees on top of your mortgage. These fees can be –,000+ per month. Always factor condo fees into your budget and review the condo’s status certificate before purchasing.
11. Complete Summary: All First-Time Buyer Incentives at a Glance
| Program | Type | Maximum Benefit | Who Qualifies |
|---|---|---|---|
| FHSA | Savings account | ,000 lifetime (tax-deductible + tax-free withdrawal) | First-time buyers, 18+, Canadian resident |
| Home Buyers’ Plan (HBP) | RRSP withdrawal | ,000 per person (,000 per couple) | First-time buyers, funds in RRSP 90+ days |
| Home Buyers’ Tax Credit (HBTC) | Tax credit | ,500 | First-time buyers |
| Ontario LTT Refund | Tax refund | ,000 | First-time buyers in Ontario |
| Toronto MLTT Rebate | Tax rebate | ,475 (expanding March 2026) | First-time buyers in Toronto |
| GST/HST New Housing Rebate | Tax rebate | Up to ,300 (federal) + ,000 (provincial) | New-build homes under ,000 |
| FTHB GST/HST Rebate (proposed) | Tax rebate | Up to ,000 | First-time buyers, new homes under M |
| 30-Year Amortization | Mortgage benefit | Lower monthly payments | First-time buyers with insured mortgages |
12. How JCA Law Office Can Help with Your Real Estate Closing
JCA Law Office Professional Corporation has extensive experience helping Filipino newcomers complete their real estate transactions in Ontario. As a firm that understands the unique needs of the Filipino-Canadian community, we provide:
- Complete real estate closing services — from reviewing your Agreement of Purchase and Sale to handing you your keys
- Land transfer tax rebate applications — we ensure you receive every dollar of the Ontario and Toronto first-time buyer refunds
- Title search and insurance — protecting your investment from title defects and fraud
- Mortgage documentation — coordinating with your lender to ensure a smooth closing
- Guidance on all first-time buyer programs — we help you understand which incentives you qualify for
- Tagalog and English service — clear communication in the language you are most comfortable with
Ready to Buy Your First Home in Ontario?
JCA Law Office Professional Corporation is here to guide you through every step of your real estate closing. We proudly serve the Filipino-Canadian community across the Greater Toronto Area.
Call us today: (647) 243-2286
Email: info@jcalaw.ca
Office: Scarborough, Ontario (serving all of the GTA)
Frequently Asked Questions
Can I use the FHSA and HBP together?
Yes. You can withdraw from both your FHSA and your RRSP (through the Home Buyers’ Plan) for the same home purchase. This gives you access to up to ,000 per person (,000 per couple) in tax-advantaged funds.
I just arrived in Canada. Do I qualify as a first-time home buyer?
Generally, yes. Most programs define a first-time buyer as someone who has not owned a home (or had a spouse/partner who owned a home) in the past 4 years. If you never owned property in Canada, you likely qualify. However, the Ontario LTT refund requires that you have never owned a home anywhere in the world. If you owned property in the Philippines, you may not qualify for the Ontario LTT refund, though you may still qualify for other programs.
Can I use money from the Philippines as my down payment?
Yes, but you need to properly document the source of funds. Keep records of wire transfers, bank statements showing the funds in your Philippine account, and a gift letter if the money is from family. Your lender will want a clear 90-day paper trail of where the funds came from.
Do I need a lawyer to buy a home in Ontario?
Yes. Unlike some countries, Ontario requires a lawyer to complete real estate transactions. Your lawyer handles the title search, land transfer tax, mortgage registration, and transfer of funds. This is not optional — it is a legal requirement.
What credit score do I need to buy a home?
Most lenders require a minimum credit score of 600–650 for insured mortgages. However, newcomer mortgage programs from major banks (RBC, TD, CIBC, etc.) may be more flexible if you have been in Canada for less than 5 years. If you have a 35% down payment, some lenders will approve you with minimal credit history.
How much are closing costs in Ontario?
Budget for approximately 1.5% to 4% of the purchase price for closing costs. This includes land transfer tax (minus any rebates), legal fees (,500–,500), title insurance (–), and other adjustments. For a ,000 home, expect ,000 to ,000 in closing costs after first-time buyer rebates.
This guide is for informational purposes only and does not constitute legal advice. Tax laws and government programs are subject to change. Please consult with a qualified lawyer and financial advisor for advice specific to your situation. Information is current as of February 2026.
Leave a Reply