First-Time Home Buyer Programs Canada
Maximize your benefits as a first-time buyer with federal and provincial programs.
Federal Programs
1. First Home Savings Account (FHSA)
| Feature |
Details |
| Contribution limit |
$8,000/year |
| Lifetime max |
$40,000 |
| Tax deduction |
Yes (like RRSP) |
| Withdrawal |
Tax-free for home |
| Repayment required |
No |
2. RRSP Home Buyers’ Plan (HBP)
| Feature |
Details |
| Maximum withdrawal |
$60,000 per person |
| Couple combined |
$120,000 |
| Tax on withdrawal |
None (if repaid) |
| Repayment period |
15 years |
| Annual repayment |
1/15 of total |
3. First-Time Home Buyers’ Tax Credit
| Feature |
Details |
| Credit amount |
$10,000 Γ 15% = $1,500 |
| Eligibility |
Did not own home in past 4 years |
| Split |
Can split with spouse |
Combined Benefit (Per Person)
| Program |
Max Amount |
| FHSA |
$40,000 |
| RRSP HBP |
$60,000 |
| Total |
$100,000 |
| Couple |
$200,000 |
Provincial Programs by Province
Ontario
| Program |
Benefit |
| Land Transfer Tax Rebate |
Up to $4,000 |
| Toronto LTT Rebate |
Additional $4,475 |
| Total Toronto |
$8,475 |
British Columbia
| Program |
Benefit |
| Property Transfer Tax Exemption |
Full exemption up to $500K |
|
Partial exemption $500K-$525K |
| New home exemption |
Up to $13,000 |
| BC HOME Partnership |
Was discontinued |
Alberta
| Program |
Benefit |
| No land transfer tax |
$0 savings built-in |
| First Place Program |
Shared equity (select cities) |
Quebec
| Program |
Benefit |
| Welcome Tax varies |
No first-time rebate |
| Home Accessibility Tax Credit |
For renovations |
Manitoba
| Program |
Benefit |
| Land Transfer Tax Rebate |
Up to $7,500 |
| Eligibility |
First home, principal residence |
Saskatchewan
| Program |
Benefit |
| First-Time Home Buyers Tax Credit |
Provincial credit |
| No land transfer tax on first home |
If under threshold |
Nova Scotia
| Program |
Benefit |
| Down Payment Assistance |
Up to $25,000 |
| New Builds |
Additional incentives |
New Brunswick
| Program |
Benefit |
| First-Time Home Buyers Program |
Rebate available |
PEI
| Program |
Benefit |
| Land Transfer Tax |
Lower rate for first-time buyers |
Newfoundland
| Program |
Benefit |
| First-Time Home Buyers Program |
Conditions apply |
Comparison: FHSA vs RRSP HBP
| Feature |
FHSA |
RRSP HBP |
| Annual contribution |
$8,000 |
Varies |
| Lifetime max |
$40,000 |
Any amount |
| Withdrawal limit |
$40,000 |
$60,000 |
| Tax deduction |
Yes |
Yes (when contributed) |
| Repayment required |
No |
Yes (15 years) |
| Withdrawal taxed |
No |
No (if repaid) |
| Miss repayment |
N/A |
Added to income |
| Winner |
Flexibility |
Larger amount |
Sample First-Time Buyer Scenario
Toronto, $700K purchase, 10% down payment
| Item |
Amount |
| Down payment needed |
$70,000 |
| FHSA contribution |
$32,000 |
| RRSP HBP |
$38,000 |
| Source of down payment |
$70,000 |
| Savings/Credits |
Amount |
| Ontario LTT rebate |
$4,000 |
| Toronto LTT rebate |
$4,475 |
| FTHB tax credit |
$1,500 |
| Total savings |
$9,975 |
Eligibility Requirements
FHSA Eligibility
- Canadian resident
- Age 18-71
- Did not own a home in current year or previous 4 years
- Did not live in a home owned by spouse
HBP Eligibility
- First-time buyer (no ownership in past 4 years)
- Have signed agreement to buy/build
- Intend to live in home as principal residence
Land Transfer Tax Rebates
- Generally: never owned home before (worldwide)
- Must be principal residence
- Some provinces: citizenship/residency requirements
Timeline for First-Time Buyers
| When |
Action |
| 2+ years before |
Open FHSA, start contributing |
| 1 year before |
Maximize FHSA, consider RRSP |
| 6 months before |
Get pre-approved |
| Purchase |
Withdraw FHSA, RRSP HBP |
| Tax time |
Claim FTHB credit |
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