Buying your first home in Caledonia? Every 2026 first-time buyer credit in Ontario explained — $50K GST rebate, $130K HST proposal, tax credits and refunds.
One important note before we start: tax rules change, and Ontario's expanded HST rebate is still a proposal moving through the legislative process. Use this guide to understand what's available, then confirm the details with your real estate lawyer or accountant before you sign anything.
This is the big one for buyers of newly built homes. Announced in May 2025 and passed into law when Bill C-4 received Royal Assent on March 12, 2026, the First-Time Home Buyers' GST Rebate lets eligible buyers recover the federal GST on a new home:
Homes priced at $1 million or less: 100% of the 5% GST rebated — up to $50,000 back.
Homes priced between $1 million and $1.5 million: the rebate phases out on a sliding scale (for example, about $25,000 on a $1.25 million home).
Homes over $1.5 million: no rebate.
It applies to purchase agreements signed between March 20, 2025 and the end of 2030, covering new homes bought from a builder, owner-built homes, and shares in a co-operative housing corporation.
Announced March 25, 2026 as part of Ontario's 2026 Budget, the province proposes to temporarily remove the full 13% HST on eligible new homes — in partnership with the federal government, which would cover the 5% federal portion. The numbers are striking:
The federal Home Buyers' Amount gives first-time buyers a $10,000 non-refundable tax credit, claimed on your income tax return for the year you buy. At the lowest federal tax rate (15%), that's worth $1,500 off your tax bill. It applies to resale homes too — not just new builds — so buyers of existing homes in Caledonia shouldn't overlook it.
First-time buyers in Ontario can claim a refund of land transfer tax up to $4,000. On a typical Caledonia-area purchase this often wipes out the entire provincial land transfer tax owing. Your lawyer usually handles this as part of closing — just make sure they know you're a first-time buyer.
The Home Buyers' Plan lets each first-time buyer withdraw up to $35,000 from their RRSP tax-free toward a down payment ($70,000 per couple). You repay it over 15 years starting in the second year after withdrawal. It's not free money, but it can be the difference between 5% down and 20% down — which also saves you CMHC insurance premiums.
If you're still saving, the FHSA is the best account in the toolkit: contributions are tax-deductible like an RRSP, and qualifying withdrawals for a first home are tax-free like a TFSA. The lifetime limit is $40,000 ($8,000 per year). Open one as early as you can — even a single year of contributions helps.
New construction in Caledonia, Cayuga, Dunnville, and surrounding Haldimand County communities is frequently priced under the $1 million threshold — exactly where every one of these programs pays out at its maximum. A $650,000 new build here qualifies for the full federal GST rebate and, if the timing lines up, the full expanded HST rebate. The same home in Toronto would face the same rebate caps against a much higher price tag. Buying new in this market doesn't just get you more house for the money — it maximizes every credit on this list.
I work with first-time buyers every week — from structuring offers on new builds so rebate assignments are handled correctly, to connecting you with mortgage professionals who understand these programs. Buyers who purchase with me also join the VIP Buyer Program, with up to $5,000 cash back at closing. Between the rebates above and the cash back, your first home can cost far less than you think.
You can receive up to $50,000 from the federal GST rebate on a new home priced at $1 million or less. The rebate returns 100% of the 5% GST for homes at that price point.
No, the federal GST rebate and Ontario’s proposed $130,000 HST rebate cannot be combined. The expanded rebate is a single combined program that replaces the $50,000 federal rebate for eligible purchases.
To qualify for the federal GST rebate you must be 18 or older, a Canadian citizen or permanent resident, and a first‑time buyer who hasn’t owned or lived in a home in the past four years (including your spouse). The home must be your primary residence and the rebate is a one‑time lifetime claim per person.
The First‑Time Home Buyers’ Tax Credit is worth $1,500 and it applies to both new and resale homes. It is based on a $10,000 non‑refundable credit calculated at the 15% lowest federal tax rate.
First‑time buyers in Ontario can receive a land transfer tax refund of up to $4,000. In many Caledonia‑area purchases this amount covers the entire provincial land transfer tax.
Yes, if your partner previously owned a home you can still qualify for the federal GST rebate as long as you meet the first‑time buyer criteria. Only one purchaser needs to satisfy the first‑time buyer rules for that rebate.