Programs for first-time buyers in Canada
Every program currently available to Canadian first-time buyers — including recent changes and what's been cancelled. Up to date as of 2024.
First Home Savings Account (FHSA)
The FHSA is the most valuable savings tool available to Canadian first-time buyers right now. Contributions reduce your taxable income (like an RRSP). Growth inside the account is tax-free (like a TFSA). When you withdraw to buy a qualifying home, withdrawals are also tax-free. No other account gives you the tax deduction going in and the tax-free withdrawal on the way out.
You can carry forward unused contribution room from one year to the next, but only one year at a time. So if you contribute $4,000 in year one, you can contribute up to $12,000 in year two ($8,000 + $4,000 carry-forward). Unused carry-forward beyond one year is lost.
If you don't end up buying a home, you can transfer your FHSA balance to your RRSP with no tax consequences. You don't lose the money. To be eligible, you must be a Canadian resident, between 18 and 71, and a first-time buyer — meaning you haven't owned a principal residence in the current calendar year or the four preceding calendar years.
RRSP Home Buyers' Plan (HBP)
The Home Buyers' Plan lets eligible first-time buyers withdraw up to $60,000 from their RRSP tax-free to put toward a home purchase. The April 2024 federal budget raised this from the previous $35,000 limit — a meaningful increase for buyers who've been contributing to their RRSP for several years. A couple can each access $60,000 for a combined total of $120,000.
The key conditions: the funds must have been in your RRSP for at least 90 days before the withdrawal. You can't simply deposit money a week before closing and withdraw it. The withdrawal is not taxable immediately, but you must repay the full amount to your RRSP over 15 years (at 1/15 per year). If you miss a repayment in a given year, that amount is added to your taxable income for that year. [verify current figures with a licensed agent or at realtor.ca]
Used with the FHSA, a single buyer can access up to $100,000 in tax-advantaged funds for a home purchase ($40,000 FHSA + $60,000 HBP). A couple can access up to $200,000 combined.
Ontario Land Transfer Tax First-Time Buyer Rebate
Ontario charges land transfer tax on all property purchases. First-time buyers receive a rebate of up to $4,000 on that tax. The rebate covers the full Ontario LTT on homes purchased up to approximately $368,000. For homes above that price, the rebate reduces your tax bill by $4,000 but doesn't eliminate it entirely.
To qualify, at least one buyer must be a Canadian citizen or permanent resident, must be 18 or older, must not have owned a home anywhere in the world, and must occupy the home as their principal residence within nine months of closing. If you're buying with a partner or spouse, their eligibility may affect yours — speak to your real estate lawyer.
Toronto Municipal Land Transfer Tax First-Time Buyer Rebate
Properties within the City of Toronto's boundaries are subject to both the provincial land transfer tax and a second municipal land transfer tax charged by the City of Toronto. Toronto first-time buyers receive a separate rebate of up to $4,475 on the municipal tax. Combined with the Ontario rebate, Toronto first-time buyers can receive up to $8,475 in land transfer tax savings. The eligibility requirements are similar to the provincial rebate. Your real estate lawyer applies both rebates at closing — you don't need to file separately.
GST/HST New Housing Rebate
If you're buying a newly constructed home or substantially renovated home as your primary residence, you may qualify for a partial rebate of the GST/HST paid. The rebate is intended to offset some of the tax charged on new construction, which wouldn't apply to a resale home. [verify current figures with a licensed agent or at realtor.ca]
If you're buying new construction, discuss the GST/HST treatment with your builder and your lawyer before signing the purchase agreement. In some cases the builder factors the rebate into the quoted price; in others you claim it separately. Never assume it's included — confirm it in writing.
Cancelled: First-Time Home Buyer Incentive (FTHBI)
The federal government's shared equity program — which provided 5% or 10% toward a down payment in exchange for a stake in your home's equity — was cancelled effective March 21, 2024. No new applications are being accepted. If you've seen this mentioned elsewhere online or in older articles, it no longer exists. Do not plan around it.