Buying your first home in Ottawa is an exhilarating milestone, but in today’s market, it requires a solid game plan. From the historic charm of Westboro to the growing communities in Kanata and Riverside South, the Ottawa real estate landscape is moving fast.
At Hamre Real Estate, we believe “Dreams are built on rooftops.” To help you get under yours, we’ve broken down the latest 2026 government incentives and local programs specifically for Ontario buyers.

Key Takeaways for 2026
The HBP Boost: You can now withdraw up to $60,000 from your RRSP tax-free.
FHSA is King: The First Home Savings Account remains the most powerful tool for tax-free growth.
30-Year Amortization: First-time buyers can now access 30-year terms on insured mortgages to lower monthly payments.
Ontario Rebates: You can claim up to $4,000 back on Provincial Land Transfer Tax.
Incentive Update: The federal “Shared Equity” mortgage program was discontinued in 2024—focus on the HBP and FHSA instead.

Federal Incentives: Your Financial Foundation

The Home Buyers’ Plan (HBP)
The HBP is a powerful way to fund your down payment. You can withdraw up to $60,000 (or $120,000 per couple) from your RRSP tax-free.
The Perk: It’s essentially an interest-free loan from yourself.
The Rule: You have 15 years to repay it, with repayments starting 2 years after your withdrawal.
First Home Savings Account (FHSA)
If you haven’t opened one yet, now is the time. The FHSA allows you to contribute up to $8,000 per year (up to a $40,000 lifetime limit).
The Best of Both Worlds: Like an RRSP, contributions are tax-deductible. Like a TFSA, withdrawals (including investment growth) are tax-free when used for your first home.
First-Time Home Buyers’ Tax Credit
When you file your taxes after buying in Ottawa, don’t forget to claim the Home Buyers’ Amount. This provides up to $10,000 in tax relief, helping you recoup some of those initial closing costs.
30-Year Amortization for Insured Mortgages
As of late 2024/2025, first-time buyers with less than a 20% down payment can opt for a 30-year amortization period.
Why it matters in Ottawa: With average prices in neighbourhoods like Orleans or Barrhaven, extending your mortgage from 25 to 30 years can significantly lower your monthly “carrying costs,” making it easier to qualify for the home you want.

Ontario Specifics: Saving on Closing Costs
Ontario Land Transfer Tax Rebate
In Ontario, land transfer taxes can be a surprise expense. Fortunately, first-time buyers are eligible for a rebate of up to $4,000.
Pro Tip: If you are buying a home in Ottawa for $368,000 or less, you may pay no provincial land transfer tax at all. For homes above that price (which is common in the current Ottawa market), you’ll receive the maximum $4,000 credit.
Note for Condo Buyers: Yes! These incentives apply to condominiums, just as they do to detached homes. Whether it’s a high-rise in the ByWard Market or a stacked townhouse in Kanata, you’re covered.

How to Apply & Mistakes to Avoid
Success in the Ottawa market is all about timing. Here is how to stay ahead:
Get Pre-Approved: Before looking at homes in Glebe or Stittsville, know your budget.
Verify “First-Time” Status: You qualify if you haven’t owned a home you lived in during the last four years.
Watch the Deadlines: Some programs, like the HBP, require funds to be in your RRSP for at least 90 days before withdrawal.
Common Pitfalls
Misunderstanding Residency: Most programs require that the home be your principal residence for at least 1 year. You cannot use these incentives for an investment property or a “flip.”
Documentation Gaps: Keep your T4s, Notices of Assessment, and 90-day bank statements ready. The Ottawa market moves fast; don’t let a missing paper cost you your dream home.

Frequently Asked Questions
Can I use the HBP and FHSA together?
Absolutely. Combining these allows a couple to put away a massive tax-advantaged down payment, which is a game-changer for tackling Ottawa’s competitive listings.
What happened to the shared-equity incentive?
The “First-Time Home Buyer Incentive” (where the government shared equity) was discontinued in March 2024. Today’s buyers should focus on the 30-year amortization and the FHSA instead.
Are there incentives for new builds?
Yes! If you’re looking at new developments in areas like Findlay Creek, you may be eligible for the GST/HST New Housing Rebate, which helps offset the tax on the purchase price.

Find Your Place in Ottawa
The Ottawa market is diverse, and navigating these programs is easier with a pro by your side. At Hamre Real Estate, we don’t just find houses; we find the right start for your future.

Information verified against federal and provincial sources as of February 2026. Always consult with a financial advisor or tax professional regarding your specific situation.