The dream of owning a home is alive and well in Simcoe County, from the growing communities of Orillia and Barrie to the lakeside charm of Midland and Wasaga Beach. But with rising home prices and changing mortgage rules, many first-time buyers wonder: Is it still possible to get help?

Yes, and that’s where this guide comes in. The mortgage experts at The Mortgage Coach Greater Simcoe are here to break down which first-time home buyer incentives in Ontario still apply in 2026 and how to use them effectively.

Let’s dive into your options, no fluff, just real advice that could save you thousands.

What Is a First-Time Home Buyer in Ontario?

Before we get into the programs, let’s clarify what it means to be a “first-time home buyer” in Ontario. According to most government incentives, you qualify if:

• You’ve never owned a home before, or
• You haven’t owned a home in the last 4 years (in some cases)
• You’re buying a primary residence, not an investment or vacation property
  
  

Keep in mind that each incentive may have slightly different definitions and eligibility criteria, which we’ll explain below.

Key First-Time Buyer Incentives That Still Apply in Ontario (2026)

Here are the major federal and provincial programs available today and how to qualify:

Let’s look closer at each.

1. First-Time Home Buyer Incentive (FTHBI)

The FTHBI is a federal government shared-equity mortgage, which means the government gives you 5% (for resale homes) or 10% (for new builds) of the home’s purchase price to reduce your monthly payments.

Pros

• Lowers your monthly mortgage without adding to your loan amount
• No interest or regular payments

Cons

• The government shares in any increase or decrease in your home’s value
• Must be repaid after 25 years or when you sell

Local Insight

This can be especially helpful in Orillia, Innisfil, or Collingwood, where new builds are rising, but prices are still relatively affordable compared to the GTA.

Tip from TMC Greater Simcoe

Use this incentive strategically if you’re buying a home you plan to upgrade or sell in the short- to medium-term. We’ll help you calculate if it makes sense for your scenario.

2. Ontario Land Transfer Tax Rebate

Land Transfer Tax (LTT) can be a shocker for many first-time buyers. Luckily, Ontario offers a rebate of up to $4,000, which often fully covers the LTT on homes priced up to $368,000.

How It Works

• Automatically applied when your lawyer registers the transfer
• Must be claimed within 18 months of purchase

Pro Tip

The rebate applies only to Ontario LTT. If you’re buying in Toronto, you’d also pay a municipal LTT (and qualify for a separate rebate).

Local Application

Homes in Midland, Wasaga Beach, and even some areas of Barrie often qualify for a full rebate, thanks to lower home prices than in Toronto.

3. Home Buyers’ Plan (HBP)

With the HBP, you can borrow up to $60,000 (combined for couples) from your RRSP tax-free and use it toward your down payment.

Requirements

• Must repay within 15 years (starts 2 years after withdrawal)
• Funds must be in your RRSP at least 90 days before withdrawal

Bonus Tip

HBP is a great complement to the FHSA (below) and doesn’t affect your mortgage qualification directly.

Example

A first-time buyer couple in Orillia using the HBP and FHSA could access over $100,000 in tax-free funds toward their down payment, which would be huge for reducing mortgage stress tests.

4. First Home Savings Account (FHSA)

The newest program on the list, FHSAs, launched in 2023 and is a powerful way to save for your first home.

Why It’s Better Than an RRSP or TFSA:

• Contributions are tax-deductible like an RRSP
• Withdrawals are tax-free, like a TFSA, when used for your home

Contribution Limits

• $8,000 per year
• $40,000 lifetime limit
• Unused room carries forward

Real Talk

Start this account ASAP, even if you’re not buying this year. It’s one of the best tax-free wealth-building tools in Canada.