01 Oct First-Time Home Buyer’s Guide to Ontario: FHSAs, Rebates, & Step-by-Step Purchasing in the West GTA
Buying your first home in Ontario is an exciting milestone! But navigating the finances, different programs and incentives, and understanding local market dynamics can feel overwhelming.
This guide here breaks down the money side of things. Programs like the First Home Savings Account (FHSA), Land Transfer Tax, deposits, and average selling prices in Oakville and Burlington. As for the detailed steps to buying a home, I’ve got that covered over here!
The First Home Savings Account (FHSA)
The First Home Savings Account (FHSA) is a registered plan designed specifically to help Ontario residents save for a first home tax-free. It combines the tax-deductible contribution benefits of a Registered Retirement Savings Plan (RRSP) with the tax-free withdrawal advantages of a Tax-Free Savings Account (TFSA). You can contribute up to $8,000 per year, to a lifetime maximum of $40,000, with no requirement to pay the money back.
How the FHSA Works
Tax Deductions: Your contributions lower your taxable income for the year, potentially resulting in a higher tax refund.
Tax-Free Growth: Investments held within the account grow completely free of income or capital gains taxes.
No Payback Requirement: Unlike the RRSP Home Buyers’ Plan (HBP), you do not have to repay the funds withdrawn for a qualifying first home purchase.
15-Year Horizon: You must use the funds to purchase a home within 15 years of opening the account or before turning 71. Unused funds can be rolled directly into an RRSP or RRIF penalty-free.
FHSA Eligibility Criteria in Ontario
To open an FHSA, you must meet the following requirements:
Age: Must be at least 18 years old (the age of majority in Ontario) and under age 71.
Residency: Must be a resident of Canada.
First-Time Buyer Status: You or your spouse/common-law partner cannot have owned and lived in a home as a principal residence during the current calendar year or in the preceding four calendar years.
Contribution Rules
Annual Limit: $8,000 per year.
Lifetime Limit: $40,000 total across all FHSAs you hold.
Carry-Forward Room: Up to $8,000 of unused contribution room can carry forward to subsequent years. Note: Contribution room begins accumulating only after you formally open an account.
You can set up an account through major banks, credit unions, and online brokerages across Ontario. Review the official program rules via the Canada Revenue Agency FHSA Guide.
Ontario Land Transfer Tax Refund
First-time buyers in Ontario are eligible for a provincial Land Transfer Tax (LTT) refund of up to $4,000. This rebate completely eliminates the provincial land transfer tax on qualifying homes priced up to $368,000 and partially offsets the tax on higher-priced properties.
Important note: you can only receive the rebate for your proportional share of ownership. If you, a first time buyer with 50% ownership, are buying a home with a partner, also a first time buyer with 50% ownership, you can each receive 50% of the rebate. You cannot both receive the full $4000.
If you are a first time buyer and including a parent on title of the property, the ownership split will determine how much of the rebate you are permitted to receive. If the parent is on title for 1%, you are entitled to 99% of the rebate.
Qualification Requirements
You must be at least 18 years of age.
You must occupy the home as your principal residence within nine months of purchase.
You must never have owned a home, or an interest in a home, anywhere in the world.
If you have a spouse, they cannot have owned a home during the time they were your spouse.
City of Toronto Purchases
$4,000 (Provincial) + up to $4,475 (Municipal) Stackable rebate total of up to $8,475
How to Claim the Refund
Your real estate lawyer typically files the application electronically at closing by submitting the required refund affidavit.
Learn more via the Ontario Ministry of Finance LTT Guidelines.
Tip: You can estimate your exact closing costs using online tools like the Ratehub Ontario Land Transfer Tax Calculator.
The 4 Steps to Buying Your First Home in Ontario
1: Pre-Approval & Financial Prep
- Mortgage Pre-Approval: Connect with a lender, either from a bank or a mortgage broker, to secure a pre-approval letter (not just pre-qualification). See the difference between pre-approval and pre-qualification here.
- Set a Personal Budget: Review total upfront costs, including down payment, closing costs (typically 2–5% of purchase price), home inspection fees, as well as your personal financial goals. This will help you come up with a monthly payment and home purchase budget that makes sense for you specifically.
- Wish List vs. Must-Haves: Establish non-negotiable needs (bed/bath count, school districts) versus flexible wants (upgraded finishes, garage style)
- Deposit: Make sure approximately 5% of your estimated purchase price can be available within 24 hours of an accepted offer. This amount can be negotiable and vary by property. A deposit is applied to your down payment at closing, but is due immediately after acceptance of an offer as a sign of good faith by the buyer.
2: The Home Search & Showings
- Buyer Consultation: This is where I meet with my clients to review their specific needs, go over their budget and timeline, discuss what’s happening in the current market, and come up with a house buying strategy.
- Showings: Showings are scheduled to look at properties that have the best potential for the clients.
3: Making an Offer & Contract
- Market Analysis: Review local comparable sales to determine a fair offer price and terms.
- Other Offer Components: Review the purchase agreement terms, price, closing date, deposit requirements, and potential conditions (inspection, financing, status certificate review, etc).
- Negotiate terms until an acceptable point is reached for all parties and the deal moves forward.
- Work through conditions: Whether it’s home inspectors, lawyers for legal and status certificate review, mortgage brokers for appraisal and financing, we go through these together. Typically the conditional process is a week, but may be longer depending on the conditions.
4: Closing Preparation
- Final Walkthrough: Conduct a room-by-room check before closing to confirm the property is in the same condition that it was purchased in.
- Final Meeting with Lender and Lawyer: The buyer will meet with the lender to sign off on final mortgage documents, and with the lawyer to sign the final documents for transfer of title.
What options are available for a first time buyer in Burlington and Oakville?
These stats are based on Jan-Sept 2026 TRREB sales and are for illustrative purposes only, subject to change.
| Property Type | Oakville Average Price | Oakville Price Range | Burlington Average Price | Burlington Price Range |
| Detached | $1,890,785 | $720,000 – $12,600,000 | $1,417,350 | $530,000 – $7,500,000 |
| Freehold Towns & Semis | $1,100,907 | $715,000 – $3,250,000 | $882,996 | $540,000 – $1,450,000 |
| Condo Townhouse | $803,168 | $460,000 – $4,499,000 | $737,075 | $332,000 – $1,590,000 |
| Condo Apartment | $665,908 | $355,000 – $3,500,000 | $652,808 | $312,000 – $3,350,000 |
Top Neighbourhoods for Entry-Level Detached Homes
Oakville: College Park and Falgarwood consistently offer entry-level detached options under the town’s average benchmark price, providing close access to GO Transit and major highway corridors.
Burlington: Palmer and Mountainside feature solid detached options with larger lot sizes at price points below Burlington’s overall detached average.
Ready to buy your first home?
With so many factors to consider, you want to hire a real estate agent who can confidently walk you through your home buying journey. I’m born and raised in these areas – there’s no one better to help you.
If we haven’t met yet, I’m Emily, a Realtor ® in Burlington, Oakville and Hamilton. Be sure to follow along for more takes like this, new listings, and some local fun along the way!
