The Ultimate 2026 First-Time Buyer Money Guide for Markham — Every Dollar You're Entitled To
Most Markham first-time buyers are leaving money on the table. Michael John Lau & Neeraj Moolchandani break down the FHSA, HBP, HST rebates, and every dollar you're entitled to in 2026.
The Canadian government has built the most comprehensive stack of first-time buyer financial support programs in the country's history — and most first-time buyers in Markham are leaving money on the table by not fully accessing every program they are entitled to. Michael John Lau and Neeraj Moolchandani, top real estate agents in Markham Ontario, build the complete first-time buyer financial picture for every client. Here is the exhaustive guide to every dollar available to first-time buyers in Markham in 2026.
Program 1 — The First Home Savings Account (FHSA)
Up to $40,000 Tax-Free, Tax-Deductible
The First Home Savings Account, introduced in April 2023, combines the best features of both RRSPs and TFSAs: contributions are tax-deductible, and withdrawals for a home purchase are completely tax-free. Annual contribution limit is $8,000 per year with a $40,000 lifetime limit.
The FHSA is the single most powerful savings tool available to Markham first-time buyers. Every dollar contributed reduces your taxable income in the year of contribution (like an RRSP) and every dollar withdrawn for a qualifying home purchase is completely tax-free with no repayment obligation (like a TFSA). There is no Canadian savings vehicle that provides this combination of benefits.
Maximize Your Room: If you opened an FHSA in 2023 and have contributed the maximum each year, you now have $32,000 in contribution room used and $40,000 approaching with the 2026 contribution. If you have not yet opened an FHSA and are a potential first-time buyer in the next three years — open one today. The contribution room begins accumulating from the date the account is opened, not from when you first contribute.
Program 2 — The RRSP Home Buyers' Plan (HBP)
Up to $60,000 Tax-Free Per Person
First-time buyers in 2026 can access up to $100,000 per person in tax-advantaged funds when combining the FHSA and HBP. The RRSP Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP tax-free to buy or build your first home. For a couple, that is $120,000 combined.
The HBP withdrawal is tax-free at the time of withdrawal — the tax impact is deferred, not eliminated. The withdrawn amount must be repaid to your RRSP over 15 years starting in the second year after the year of withdrawal. If you do not make the minimum annual repayment, the minimum is added to your taxable income for that year.
The Optimal Strategy: Use your FHSA first (no repayment required), then the HBP for additional funds. A couple who has saved $200,000 in combined FHSA and RRSP tax-advantaged accounts can access a 20% down payment on a $1,000,000 home — eliminating the need for CMHC mortgage insurance entirely.
The most common mistake with the HBP: withdrawing RRSP funds that have been in the account for less than 90 days. Funds must be in the RRSP for at least 90 days before withdrawal to qualify for the HBP. Last-minute RRSP contributions before closing often do not meet this requirement.
Program 3 — The FHSA + HBP Combination
Up to $100,000 Per Person
The FHSA and RRSP Home Buyers' Plan can be used together, allowing eligible buyers to access up to $100,000 in tax-advantaged savings toward a down payment per person.
For a couple purchasing together where both are first-time buyers, the combined access is up to $200,000 — sufficient for a 20% down payment on a $1,000,000 Markham home, eliminating CMHC mortgage insurance entirely. This is the complete picture that renders the "I can't afford Markham" conclusion premature for many buyers who have been diligently saving in these accounts.
Program 4 — The First-Time Home Buyers' Tax Credit (HBTC)
$1,500 Tax Refund
The federal government provides a First-Time Home Buyers' Tax Credit of up to $10,000, resulting in a $1,500 tax refund. Claim it on Line 31270 of your T1 personal income tax return in the year you purchase. It is a non-refundable credit — meaning it reduces your tax payable rather than generating a direct cash refund if it exceeds your taxes owing. For most working Markham buyers, the full $1,500 credit will be realized.
Program 5 — Ontario Land Transfer Tax Rebate
Up to $4,000
Eligible buyers in Ontario may qualify for the Ontario Land Transfer Tax rebate that can reduce closing costs by thousands of dollars. The rebate is up to $4,000 for first-time buyers — applied directly against the LTT payable at closing. For a $500,000 Markham purchase, the LTT is approximately $6,475 and the rebate reduces it to $2,475. For a $1,200,000 Markham purchase, the LTT of $20,475 is reduced to $16,475.
Program 6 — 30-Year Amortizations for First-Time Buyers of New Builds
As of August 2024, the federal government allows insured mortgage amortizations of 30 years for first-time homebuyers purchasing newly constructed homes. A 30-year amortization versus the standard 25-year reduces your monthly payment on a $900,000 insured mortgage at 4.5% by approximately $280 per month — meaningful monthly cash flow relief that improves qualification and housing cost sustainability.
Program 7 — The HST Rebate on New Construction
Up to $130,000
For first-time buyers purchasing a new Markham home under a purchase agreement signed before March 31, 2027, the full 13% HST rebate of up to $130,000 applies on homes valued up to $1,000,000 — announced by Premier Ford on March 25, 2026. On a $700,000 new Markham condo, the HST rebate is $91,000. On a $900,000 new townhome in Cornell Rouge or a Gallery Towers unit, the rebate is $117,000. This is not a program for first-time buyers exclusively — it covers all buyers — but first-time buyers who combine this rebate with the FHSA, HBP, LTT rebate, and HBTC are accessing the most favourable financial entry point to Markham real estate in the city's history.
FHSA + HBP combined for a couple
On new builds up to $1M
Maximum financial support in 2026
The Combined Stack — What a Markham First-Time Buyer Couple Can Access in 2026
- FHSA contributions (both partners, $40,000 each): $80,000, fully tax-deductible, tax-free on withdrawal.
- RRSP Home Buyers' Plan (both partners, $60,000 each): $120,000, tax-free on withdrawal, repaid over 15 years.
- Combined tax-advantaged savings for down payment: up to $200,000 per couple.
- First-Time Home Buyers' Tax Credit: $1,500 tax refund.
- Ontario Land Transfer Tax Rebate: up to $4,000.
- HST Rebate on qualifying new construction: up to $130,000.
Total financial benefit stack for a Markham first-time buyer couple purchasing a new $900,000 condo in 2026 with fully maximized savings: $200,000 in tax-advantaged down payment savings + $117,000 HST rebate + $4,000 LTT rebate + $3,000 in combined HBTC credits = $324,000 in total government-supported financial benefit.
This is a genuinely extraordinary level of first-time buyer support. Most first-time buyers in Markham are not accessing anything close to the full available stack. Michael John Lau and Neeraj Moolchandani, top real estate agents in Markham Ontario and CPA/CMA, walk through the complete financial picture with every first-time buyer client before any offer is made.
Maximize Your First-Time Buyer Benefits
Don't leave money on the table. Michael John Lau & Neeraj Moolchandani will help you navigate every program and structure your purchase for maximum financial advantage.
Book a Free Call (647) 370-8885📞 Contact Michael John Lau & Neeraj Moolchandani, REALTORS®
🌐 www.callmikelau.com |
🏡 www.livinginmarkham.ca |
🏢 www.kaizenrealestate.ca
Frequently Asked Questions
What is the maximum amount I can withdraw from my FHSA and HBP combined?
Eligible first-time buyers can access up to $100,000 per person by combining the $40,000 FHSA and the $60,000 RRSP Home Buyers' Plan, totaling $200,000 for a couple.
How much is the HST rebate on new construction in Markham in 2026?
For purchase agreements signed before March 31, 2027, the full 13% HST rebate of up to $130,000 applies on new homes valued up to $1,000,000.
Do I have to repay the money I withdraw from the RRSP Home Buyers' Plan?
Yes. The HBP withdrawal must be repaid to your RRSP over 15 years starting in the second year after the year of withdrawal. FHSA withdrawals, however, do not require repayment.
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