2026 Tax Hacks

Written By Ian Cameron

A Guide by Ian Cameron - The Real Estate Scout

You aren't just looking for a home; you’re looking to make your housing affordable. With 13 years of personal conversion experience and 5 years as a Realtor, I don't just "show houses"—I analyze them using my proprietary Scout Index.

The Scout Index: I created a property scoring system I developed to evaluate conversion feasibility. I rank homes based on structural "bones," ceiling height, egress potential, utility layout, etc  to predict your renovation ROI before you even make an offer.

Part 1: The 2026 "Stackable" Strategy

In 2026, the real magic happens when you "stack" these six incentives together.

1. FHSA (First Home Savings Account)

  • The Value: Contributions are tax-deductible (like an RRSP), but withdrawals for your home are tax-free (like a TFSA).

  • The Math: If you earn $75,000, an $8,000 contribution can trigger a tax refund of approximately $2,370. Earn more? Your refund grows with your tax bracket.

  • Time Sensitivity: You must contribute by December 31 to get the deduction for that tax year. Unlike RRSPs, there is no "first 60 days" grace period for the FHSA! So, depositing this today means you get a refund in 2027

2. HBP (Home Buyers’ Plan) 

  • DO THIS ONE IMMEDIATELY - If you plan to buy in 2026

  • The Value: Withdraw up to $60,000 tax-free from your RRSP.

  • You will get your tax refund which will be approx 30% of your contribution

    • E.g. If you contribute a down payment of $25,000 you could get a tax refund of approx $7500!  ** of course this depends on your tax bracket/income level

  • The Strategy: Use this for your down payment. You have 15 years to pay it back, starting the second year after withdrawal.

  • Time Sensitivity: Funds must be in your RRSP for at least 90 days before withdrawal. Act now to have these ready for a spring/summer closing.

Deadline for RRSP contribution is 11:59pm on Monday March 2nd!


3. First-Time Buyers Tax Credit

  • The Value: A $10,000 non-refundable tax credit.

  • The Result: It puts an extra $1,500 directly back into your pocket when you file your 2026 taxes.

4. NRRRP Sales Tax Rebate

  • The Value: The New Residential Rental Property Rebate for your second unit.

  • The Result: You can claim 75% of the Ontario portion of the HST paid on the conversion, up to a maximum of $24,000. This is essential for offsetting contractor costs.

  • This is a not a very well known tax hack, but it is PERFECT and applicable for House Hacking 

5. Land Transfer Tax (LTT) Refund

  • The Value: Ontario provides a rebate for first-time buyers.

  • The Result: Up to $4,000 off your closing costs. On a typical London starter home, this often wipes out the provincial LTT entirely.

6. City of London ARU Loan (The "Big One")

  • The Value: London is aggressively fighting the housing crisis. They offer forgivable or interest-free loans for adding an Additional Residential Unit (ARU).

  • The Power Move: If you build a detached ARU (like a garden suite or tiny home) and meet affordability criteria, you can access up to $45,000 in a forgivable loan.

  • Why it works for House Hackers: This essentially pays for a massive chunk of your build.
    This money is fungible, so you can use it for ANYTHING once you receive it.
    This comes as a rebate at the end of your renovation, after you get a long term (not Airbnb, VRBO, etc) tenant and you share your lease, and close your building permit.

    You can use this money to pay back your HBP-RRSP loan, or make an additional contribution(s) to your RRSP to get even more tax breaks (e.g. $45k into RRSP could be a $13,500 tax refund).
    Or, you could use it to go to Costa Rica and sit on the beach while you plan what you will use the rest for… 

  • IMPORTANT! - you must apply and get approved BEFORE you start building/get permits for your ARU. Also you don’t need to buy a new house to get this, you can get approved even if you just want to add an aru to your current home, if you already own a home.


Part 2: Your 2026 Action Timeline (if you are buying in 2026)

  • February/March: Get pre-approved. I can’t stress enough that you should use a mortgage broker.
    Don’t just walk into your bank. 
    They are extremely limited and short sighted when it comes to House Hacking, and the very important “Purchase Plus Improvements” mortgage. 
    My guy is Adrian (Mortgage Broker) and I would be more than happy to put you in touch with him.  You need to confirm your "Purchase Plus Improvements" budget so we know exactly how much we can spend on the renovation.

  • March/April: We go hunting. I apply the Scout Index to every listing. Once we find "The One," we get the Architect to do a quick "Go/No-Go" feasibility check on the plans.

  • April/May: Offer accepted. While we wait for closing, your Tax Refund (from your FHSA/RRSP contributions) hits your bank account—perfect timing for your initial renovation deposits.

  • Closing Day: We submit the Architect’s plans for permits the moment you own the keys.

  • Summer 2026: Construction begins. Summer is the "Golden Window" for separate entrance excavations and utility tie-ins.


When it’s time to create the picture of what your ARU will look like, I have a BCIN Designer on my team (basically like an architect, but less $$) and he can analyze a property before committing to a purchase, along with Adrian and I. And, he will draft drawings and 3D rendering so you know exactly what to expect. 


PRO TIP -  when you are making an ARU, I recommend you make it like a mini ‘dream home’ and you live in the ARU and rent the existing house.  It will be a brand new place and you can customize it to how you like it!  It makes the process so much more fun.

Ian Cameron
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