First-time home buyer programs in Canada.

The definition of "first-time home buyer" in Canada is more flexible than people assume. For most federal and provincial programs, you qualify if:

• You have not owned a home in the previous four years, and
• You have not lived in a home owned by your spouse or common-law partner in the previous four years

That means even if you've owned before, you may have re-qualified for first-time buyer benefits. Always confirm the specific rules for each program.

The FHSA, introduced in 2023, is arguably the most generous tax-advantaged savings vehicle in Canadian history. It combines the best features of an RRSP and a TFSA:

• Contributions are tax-deductible (like an RRSP)
• Growth is tax-free (like a TFSA)
• Withdrawals for a qualifying home purchase are tax-free (better than both)

The numbers

• Annual contribution limit: $8,000
• Lifetime contribution limit: $40,000
• Unused room carries forward, but you only build contribution room while the account is open.
• Account can stay open 15 years from opening or until you turn 71, whichever comes first.

Combined with a partner

Each first-time-buyer spouse can have their own FHSA. A couple can collectively shelter $80,000 in down payment savings — tax-deductible going in, tax-free coming out.

If you don't end up buying

You can transfer FHSA funds tax-free to your RRSP (no impact on RRSP contribution room) or withdraw them as taxable income. There's no penalty.

The Home Buyers' Plan (HBP) lets you withdraw up to $60,000 from your RRSP — tax-free — to buy or build a first home. It's been raised from $35,000 in recent budgets and is per-person (so couples can withdraw up to $120,000 combined).

The catch

It's a loan from yourself, not a free withdrawal. You must repay it to your RRSP over 15 years, starting the second year after withdrawal. Missed annual repayments are added to your taxable income that year.

Combining with the FHSA

You can use both. The FHSA is generally better for new savings (tax-free withdrawal, no repayment), but the HBP unlocks existing RRSP funds you've already built up. A common approach: max your FHSA each year, then tap your RRSP via HBP at purchase.

A non-refundable federal tax credit of up to $1,500 ($10,000 × 15% federal credit rate) for first-time buyers, claimed on the year of purchase. Either spouse can claim the full amount, or you can split it.

Not life-changing, but free money. Don't forget to claim it on your tax return for the year you close.

Land Transfer Tax (LTT) is paid at closing in every province except Alberta and Saskatchewan (which use small registration fees instead). First-time buyer rebates vary considerably:

Ontario

• Provincial LTT rebate: up to $4,000 on homes up to ~$368,000
• Toronto municipal LTT rebate: up to $4,475 on homes up to ~$400,000
• Buying in Toronto? Combined first-time buyer rebate up to $8,475

British Columbia

Property Transfer Tax exemption on homes up to $835,000; partial exemption up to $860,000. Saves first-time BC buyers up to $15,000.

Prince Edward Island

Full Real Property Transfer Tax exemption for first-time buyers (~1% of purchase price saved).

Quebec

Welcome tax (taxe de bienvenue) is structured similarly to LTT. Some municipalities offer first-time buyer rebates — Montreal in particular.

Other provinces

Most offer some form of rebate or deferral. Check your provincial Ministry of Finance for current limits.

The federal First-Time Home Buyer Incentive — the shared-equity program offering 5–10% of purchase price as a government loan — was wound down in 2024. If you took it before then, the repayment obligation remains. If you're researching it now, it's no longer available.

If you're buying a newly built home (or substantially renovating an existing one to like-new condition), GST or HST applies to the purchase. A rebate may be available:

• Up to $6,300 in federal GST/HST rebate on homes up to $350,000 (phasing out to $0 at $450,000)
• Provincial new housing rebates in Ontario, Quebec, and PEI can add another $24,000+ in maximum savings

Note: in 2024–2026, federal policy moved toward eliminating GST on new homes up to $1M for first-time buyers. Confirm current rules with your accountant or the builder's lawyer.

A first-time buying couple in Ontario can realistically combine:

• $80,000 in FHSA contributions over 5 years ($40K × 2 partners)
• $120,000 in RRSP HBP withdrawals at close ($60K × 2)
• $3,000 in Home Buyer Tax Credit ($1,500 × 2)
• $8,475 in Toronto land transfer tax rebate (if buying in Toronto)
• $30,000+ in GST/HST new-housing rebate (if buying a new build)

Net: nearly $240,000 in tax-advantaged purchasing power on a first home — most of it not commonly known. The right financial planner and real estate agent ensure you actually claim every dollar.

The numbers above are powerful, but they don't replace a good agent. A buyer's agent who specializes in first-time buyers knows which homes are eligible for which rebates, can connect you with mortgage brokers who run the FHSA + HBP combination cleanly, and can spot the financing landmines in older properties before you write an offer.

Browse top-ranked agents in your city → — many specifically work with first-time buyers and can walk you through every program above on a first call.