First-Time Buyers in Vaughan: the 2026 Rules That Matter

The rules for first-time buyers in Canada changed more between 2024 and 2026 than they had in the previous decade. Some of those changes matter a lot in a market like Vaughan, where most detached homes are well over a million dollars. Here's what's actually useful to know.

The $1.5 million insured mortgage cap

Since December 15, 2024, you can get an insured mortgage on a home priced up to $1.5 million. Before that, the cap was $1 million, which effectively shut first-time buyers out of most of Vaughan's detached market unless they had a large down payment.

What this means in practice: if you're buying a home between $1 million and $1.5 million, you can now put as little as 5% down on the first million and 10% on the portion above that, rather than needing 20% of the full price.

You still pay CMHC default insurance on those mortgages. The premium is added to your mortgage, but the Ontario provincial sales tax on that premium is due in cash on closing. Factor that into your budget.

30-year amortizations for first-time buyers

Also since August 2024: if you're a first-time buyer purchasing a new construction home, or if you're buying any home as a first-time buyer with an insured mortgage, you can now amortize over 30 years instead of 25. That's five extra years to spread the payments.

The lower monthly payment helps with qualification. On a $900,000 mortgage at current rates, the difference between a 25-year and 30-year amortization is roughly $300–$400 a month. That's meaningful when a lender is looking at your debt-service ratios.

The First Home Savings Account (FHSA)

The FHSA lets you contribute up to $8,000 a year and $40,000 over your lifetime. Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying first home are tax-free (like a TFSA). It's the most efficient savings account the government has ever created for this purpose.

If you haven't opened one yet, do it now. The contribution room doesn't accumulate until you open the account, and unused room carries forward only one year. If you opened your FHSA in 2023 and haven't contributed, you have up to $16,000 of room available right now.

You can combine FHSA and RRSP Home Buyers' Plan withdrawals on the same purchase.

The RRSP Home Buyers' Plan

The Home Buyers' Plan lets first-time buyers withdraw up to $60,000 from their RRSP tax-free to use as a down payment (limit was increased from $35,000 in 2024). A couple buying together can withdraw $60,000 each, $120,000 combined. You repay it over 15 years, and repayments usually start two years after the withdrawal.

Combined with an FHSA, this can put a significant amount of money toward your down payment without triggering tax on the withdrawal.

Ontario land transfer tax refund

First-time buyers in Ontario get a refund of up to $4,000 on the provincial land transfer tax. On a home priced at the August 2026 Vaughan benchmark of $1,124,400, the Ontario LTT is about $18,963. After the refund, you're paying roughly $14,963.

Vaughan has no municipal land transfer tax (that only applies in the City of Toronto), so you only pay the provincial tax.

New-home HST relief (April 2026 – March 2027)

If you're buying a newly built home directly from a builder, there's a temporary Ontario HST relief program running from April 1, 2026 to March 31, 2027. On new homes priced up to $1 million the full HST on the new home is relieved, and there is a partial rebate on homes between $1 million and $1.85 million. The home has to be your primary residence (or a rental), and the program still depends on final legislation, so confirm the details with your builder and your lawyer.

This only applies to new construction purchased from a builder, not resale. If you're shopping for a new build in Vaughan, ask your lawyer and the builder's sales team to confirm how it applies to the specific project and purchase price.

First-Time Home Buyers' Tax Credit

This is a federal tax credit worth up to $1,500 at tax time. Not life-changing on a Vaughan purchase, but you're entitled to it, so make sure your accountant claims it in the year you close.

What actually matters for most Vaughan buyers

The rules above are worth knowing, but in Vaughan the practical questions are usually: how much do I actually need in cash on closing day, and what price range can I qualify for?

The $1.5 million cap and 30-year amortizations together have opened the door for buyers who previously couldn't qualify for the homes they wanted. But a lower monthly payment also means a longer time paying interest. Run the numbers with your mortgage broker before deciding on the amortization.