First-Time Buyer Series, Part 2: Programs and Incentives for Markham Condo Buyers

Welcome back to the First-Time Buyer Series. This is Part 2 of 6. In Part 1, we covered budgeting, down payment basics, credit and mortgage pre-approval. This week, we look at the government programs and incentives that can help first-time buyers keep more of their hard-earned savings when buying a Markham condo.

We checked the rules below against official federal and Ontario government sources in mid-October 2026. These programs are updated often, though, so use this as a starting point rather than the final word.

1. The First Home Savings Account (FHSA)

The FHSA blends the best parts of an RRSP and a TFSA. Contributions are generally tax-deductible, and a qualifying withdrawal used to buy your first home comes out tax-free.

• Contribution limits: up to $8,000 per year, with a lifetime limit of $40,000.

• Carry-forward: unused room can be carried forward within limits, so opening an account early helps you build room even before you can contribute much.

• Who can open one: you must be at least 18, a resident of Canada, and a first-time home buyer. For the FHSA, that generally means you haven't lived in a home that you (or your spouse or common-law partner) owned during the current year or the four calendar years before it.

• Time limit: the account can stay open for a limited period, ending after the 15th anniversary of opening it, the year you turn 71, or the year after your first qualifying withdrawal, whichever comes first.

2. The RRSP Home Buyers' Plan (HBP)

The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSPs to buy or build a qualifying home, with no tax on the withdrawal. Unlike the FHSA, the HBP is essentially a loan to yourself, and you repay it to your RRSP over 15 years.

• According to the CRA, if your first HBP withdrawal is made between January 1, 2026 and December 31, 2028, repayments start in the fifth year after the year of withdrawal, which gives you extra breathing room after closing.

• Spouses or partners buying together can each use the HBP for the same home.

• You can use both the HBP and a qualifying FHSA withdrawal for the same purchase, as long as you meet the conditions of each at the time of withdrawal.

3. Ontario Land Transfer Tax Refund

Land transfer tax is one of the larger closing costs, and it's due when your purchase is registered. Eligible first-time buyers in Ontario can receive a refund of up to $4,000, which works out to no provincial land transfer tax on the first $368,000 of the home's value. Markham buyers also don't pay the separate municipal land transfer tax that applies in the City of Toronto.

To qualify, generally you must:

• Be at least 18 years old.

• Be a Canadian citizen or permanent resident (if you don't have that status at closing, you have 18 months after registration to get it and apply).

• Never have owned a home, or an interest in one, anywhere in the world. The same applies to your spouse while they have been your spouse.

• Move in as your principal residence within nine months of the transfer.

• Apply within 18 months if your lawyer doesn't claim it at registration (this is how most buyers receive it).

Note that this test is stricter than the FHSA's. It looks at whether you have ever owned a home, not just the last few years. If a co-buyer doesn't qualify, the refund is reduced in proportion to their ownership share.

4. GST/HST Rebates on New Condos

Resale condos generally don't carry GST/HST, so this section mainly applies if you're buying a brand-new unit from a builder. (We'll compare resale and pre-construction in Part 6.)

• Federal First-Time Home Buyers' GST/HST Rebate: up to $50,000, covering the full federal 5% on new homes valued up to $1 million, with a reduced rebate between $1 million and $1.5 million. It applies to agreements of purchase and sale signed with a builder on or after March 20, 2025.

• Ontario First-Time Home Buyers' Rebate: up to $80,000 of the 8% provincial portion of the HST, following the federal program's eligibility conditions.

• Ontario Enhanced New Housing Rebate: a temporary rebate open to all buyers (not only first-timers) for agreements signed between April 1, 2026 and March 31, 2027. Provincial relief from the different Ontario rebates can't be stacked past the $80,000 cap.

• Builders often credit these rebates on the closing statement. How that's written into your agreement matters, so have your lawyer review it before you sign.

5. The Home Buyers' Amount (Tax Credit)

When you file your taxes for the year you buy, you may be able to claim the home buyers' amount: up to $10,000, worth up to $1,500 as a non-refundable federal tax credit. Partners can split the claim, but the combined total can't exceed $10,000. The first-time test is similar to the FHSA's four-year look-back.

Your First-Time Buyer Incentives Checklist

• Open an FHSA as soon as you're eligible, even with a small first deposit.

• Review your RRSP balance and decide whether an HBP withdrawal and its repayment schedule fit your budget.

• Ask your lawyer early to confirm whether you qualify for the land transfer tax refund, and keep proof of citizenship or permanent residence handy.

• If you're buying new, ask the builder in writing how the GST/HST rebates are handled in the price and at closing.

• Keep your purchase documents for tax time so you can claim the home buyers' amount.

• Map out which accounts to draw from, and in what order, with your mortgage professional and tax advisor.

Confirm Before You Count on It

Each program has its own definition of "first-time buyer," and the rules can change with every federal or provincial budget. This article is general information only, not legal, tax or financial advice. Please confirm the details with your lawyer, mortgage professional or tax advisor before you make decisions.

Let's Talk About Your First Markham Condo

Thinking about buying your first condo in Markham? We'd love to help you put these programs to work as part of a realistic buying plan. Contact us for a free first-time buyer consultation or to book a viewing.

• Brant Liu: 647-867-0586 | brantliu1018@gmail.com

• Sally Jiang, CPA: 647-968-3216 | SallyJiang628@hotmail.com

Coming up in Part 3: Choosing the Right Markham Condo. We'll cover location (Downtown Markham, the Highway 7 corridor, and spots near GO and Viva transit), building age, amenities, layout, parking and lockers, plus our best touring tips.

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Brant Liu & Sally Jiang, Sales Representatives, T-One Group Realty Inc., Brokerage. This article is for general information and is not intended to solicit buyers or sellers already under contract.