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.

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

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

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

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

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

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)

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

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

1. Get pre-approved early: Even before you start house hunting, get a mortgage pre-approval. This tells you exactly how much you can afford.
2. 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.
3. 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.
4. 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.
5. 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

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.

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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.