First-Time Home Buyer Programs in Canada
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Buying your first home costs more than the purchase price. Land transfer tax, GST on a new build, and the down payment itself can add tens of thousands of dollars before you get the keys. First-time home buyer programs in Canada can cover a large part of that bill, as long as you know which ones apply to you and in what order to use them.
This guide lists every federal program and the main provincial ones, with each amount checked at the official source as of October 18, 2026. For mortgage rates, lenders, and the rest of the buying process, start with our mortgages hub.
Who counts as a first-time home buyer?
There is no single definition. Each program sets its own test, but most federal programs use the same four-year rule. You qualify if you did not live in a home that you owned, or that your spouse or common-law partner owned, in the current calendar year or in the four previous calendar years.
So you can count as a first-time buyer even if you owned a home ten years ago. Some provincial programs are stricter, though. Ontario's land transfer tax refund, for example, requires that you have never owned a home anywhere in the world.
Federal programs at a glance
The federal government runs four programs that put money in a first-time buyer's pocket, plus one rule change that lowers monthly payments. The table below sums them up as of October 18, 2026.
| Program | What it does | Maximum | Repayment |
|---|---|---|---|
| First Home Savings Account (FHSA) | Tax-deductible contributions, tax-free withdrawal for a first home | $8,000 a year, $40,000 lifetime | None |
| Home Buyers' Plan (HBP) | Tax-free RRSP withdrawal to buy or build a home | $60,000 per person | Over 15 years |
| Home buyers' amount (line 31270) | Non-refundable federal tax credit | Credit calculated on $10,000 | None |
| FTHB GST/HST rebate | Refund of GST or federal part of HST on a new home | $50,000 | None |
| 30-year insured amortization | Lower monthly payment on a mortgage with less than 20% down | Homes under $1.5 million | Not applicable |
First Home Savings Account (FHSA)
The FHSA is the strongest tool most first-time buyers have. Your contributions are tax-deductible, like an RRSP, and a qualifying withdrawal to buy a home is tax-free, like a TFSA. As of October 18, 2026, the Canada Revenue Agency (CRA) sets these limits:
- Annual participation room: $8,000
- Lifetime limit: $40,000
- Maximum carry-forward: $8,000 of unused room into the following year
- Maximum participation period: 15 years, or until the end of the year you turn 71
To open one, you must be a resident of Canada, at least 18 (19 where that is the age of majority), and no older than 71 on December 31 of the year you open it. You must also meet the four-year first-time buyer test.
Room only starts to build once the account exists. If you plan to buy in two or three years, opening an FHSA now, even with a small deposit, starts the clock. Our FHSA calculator projects the tax savings, and product sheets such as the EQ Bank FHSA Savings Account or the Wealthsimple FHSA show what each provider offers.
FHSA for couples
Each partner can open an FHSA, so a couple can shelter up to $80,000 over time. Each person must qualify on their own. If you currently live in a home your spouse owns, you cannot open an FHSA, even if your name is not on the title.
Home Buyers' Plan (HBP)
The HBP lets you withdraw money from your RRSP to buy or build a qualifying home without paying tax on the withdrawal. As of October 18, 2026, the CRA's withdrawal limit is $60,000 per person. A couple who both qualify can therefore withdraw up to $120,000.
The withdrawal is a loan to yourself. You repay it to your RRSP over 15 years, and any amount you skip in a given year is added to your taxable income. The CRA has also extended a temporary relief measure: if your first HBP withdrawal falls between January 1, 2026, and December 31, 2028, repayments start in the fifth year after the withdrawal instead of the second. A first withdrawal in 2026 means a first repayment year of 2031.
You can use the FHSA and the HBP for the same purchase. That combination is how a single buyer can put up to $100,000 of tax-sheltered savings, plus any growth, toward one home. Read our RRSP guide before you plan a withdrawal: contributions made less than 90 days before the withdrawal may not be deductible.
First-time home buyers' tax credit
The home buyers' amount, claimed on line 31270 of your federal return, lets you claim up to $10,000 in the year you buy a qualifying home. It is a non-refundable credit: it reduces the federal tax you owe, but it does not create a refund on its own. The credit equals the $10,000 amount multiplied by the lowest federal tax rate.
You qualify if neither you nor your spouse lived in a home you owned in the year of purchase or the four previous years. The four-year test does not apply if you, or a related person you buy the home for, are eligible for the disability tax credit. Spouses can split the claim, but the combined total cannot exceed $10,000.
GST/HST rebate on a new home
The First-Time Home Buyers' (FTHB) GST/HST rebate targets new construction. It refunds up to $50,000 of the GST, or the federal part of the HST, that you pay on a newly built or substantially renovated home. The CRA started accepting applications in March 2026. According to the Department of Finance, the main conditions are:
- Full rebate: new homes valued up to $1 million
- Partial rebate: a linear phase-out between $1 million and $1.5 million, so a $1.25 million home gets 50% of the GST back, up to $25,000
- Purchase agreement: signed with the builder on or after May 27, 2025, and before 2031
- Construction: started before 2031 and substantially completed before 2036
You must be at least 18, a Canadian citizen or permanent resident, and meet the four-year test. You can claim the rebate only once in your lifetime. It comes on top of the existing GST/HST new housing rebate, and you usually have two years after taking ownership to apply. Our guide to the GST explains how the tax itself works.
30-year amortization on insured mortgages
Since December 15, 2024, first-time buyers can get a 30-year amortization on an insured mortgage, which is any mortgage with less than 20% down. Before that date, insured mortgages were capped at 25 years. Buyers of a newly built home also qualify, whether or not it is their first purchase.
A longer amortization lowers the monthly payment, which helps you pass the debt ratios lenders apply. The trade-off is more interest over the life of the loan and a slightly higher mortgage insurance premium. The same reform raised the price cap for insured mortgages from $1 million to $1.5 million. Our down payment calculator shows the minimum you need at any price under that cap.
Provincial programs
Provincial relief mostly targets land transfer tax, the one-time tax you pay when the title changes hands. Use our land transfer tax calculator to estimate it for your province before you make an offer.
| Province | Program | Maximum benefit | Key condition |
|---|---|---|---|
| Ontario | Land transfer tax refund | $4,000 | Never owned a home anywhere in the world |
| Ontario | First-time home buyers' rebate (provincial part of HST) | $80,000 | New or substantially renovated first home |
| British Columbia | Property transfer tax exemption | $8,000 | Full exemption up to $835,000, partial to $860,000 |
| Quebec | Refundable tax credit for access to homeownership | $5,875 | Home acquired from January 1, 2026; reduced above $750,000 |
| Alberta | No land transfer tax | Not applicable | Land title registration fees apply instead |
Ontario
Ontario refunds up to $4,000 of provincial land transfer tax to first-time buyers. You must be at least 18, occupy the home as your principal residence within nine months, and never have owned a home, or an interest in one, anywhere in the world. You must be a Canadian citizen or permanent resident; if you are not yet, you have 18 months after registration to obtain that status and apply.
Ontario also offers a first-time home buyers' rebate of up to $80,000 of the provincial part of the HST on a new or substantially renovated first home. It follows the same eligibility conditions as the federal FTHB rebate and is administered by the CRA. If you buy in Toronto, you also pay a municipal land transfer tax, and the City runs its own first-time buyer rebate on top of the provincial one.
British Columbia
British Columbia's first time home buyers' program exempts you from property transfer tax on the first $500,000 of the purchase price. Since April 1, 2024, the full exemption applies to homes with a fair market value of $835,000 or less, and a partial exemption applies between $835,000 and $860,000. The provincial government puts the maximum saving at $8,000.
To qualify, you must be a Canadian citizen or permanent resident and have lived in British Columbia for at least one year before registration, or filed at least 2 B.C. income tax returns in the last 6 years. You must never have owned a principal residence anywhere in the world, and you must move in within 92 days.
Quebec
Quebec created a refundable tax credit for access to homeownership for homes acquired from January 1, 2026. It reimburses the municipal transfer duty, often called the welcome tax:
- First tier: 100% of the first $5,000 of transfer duty
- Second tier: 25% of the next $3,500, worth up to $875
- Maximum credit: $5,875
The credit shrinks by 2.35% of the amount by which the taxable base exceeds $750,000, and drops to $0 at $1 million. The home must be your first principal residence under a four-year test similar to the federal one. For 2026, Revenu Québec lets you request an advance payment through Mon dossier until December 1, 2026.
Alberta and other provinces
Alberta does not charge a land transfer tax. Buyers pay land title registration fees instead, so there is no provincial transfer tax refund to claim. Rules in other provinces change often, so check your provincial finance ministry or tax site before counting on a rebate.
How to stack the programs
Most first-time buyers can combine several programs on the same purchase. A practical order of operations looks like this:
- Open an FHSA as early as possible: room only accumulates from the year the account is opened, up to $8,000 a year.
- Plan your HBP withdrawal: keep RRSP contributions in the plan for at least 90 days before you withdraw them.
- Confirm the price cap: under $1.5 million, you can buy with less than 20% down and choose a 30-year amortization as a first-time buyer.
- Ask about land transfer tax relief: in Ontario and British Columbia, your lawyer or notary usually claims it at registration.
- Claim the tax credits: line 31270 on your federal return, plus Quebec's refundable credit if you buy there.
- Apply for the GST/HST rebates on a new build: usually within two years of taking ownership.
Conclusion
First-time home buyer programs in Canada are worth real money, but they do not apply automatically. The FHSA and the HBP build the down payment, the federal tax credit and the GST/HST rebates lower your tax bill, and provincial programs cut or refund the land transfer tax. Open your FHSA early, check each program's own definition of a first-time buyer, and apply within each deadline.
Once you know your budget, compare offers with our list of the best fixed mortgage rates and get a mortgage pre-approval before you start visiting homes.
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Frequently asked questions about first-time home buyer programs
Can I use the FHSA and the Home Buyers' Plan together?
Yes. The CRA lets you make a qualifying FHSA withdrawal and an HBP withdrawal for the same home. As of October 18, 2026, that means up to $40,000 from the FHSA plus up to $60,000 from your RRSP, per person. Only the HBP portion has to be repaid, over 15 years. Our FHSA calculator and RRSP vs TFSA calculator help you decide where to put new savings first.
How much is the first-time home buyers' tax credit worth?
You claim a $10,000 amount on line 31270 of your federal return in the year you buy. The credit equals that amount multiplied by the lowest federal tax rate, and it only reduces tax you owe. Spouses can share the claim, but the combined total cannot exceed $10,000. If you live in Quebec, the province's separate refundable credit for the welcome tax can add up to $5,875, as detailed in our mortgages section.
Do I qualify as a first-time buyer if I owned a home before?
Often, yes. Most federal programs only ask that you did not live in a home owned by you or your spouse in the current year or the four previous calendar years. Ontario's land transfer tax refund and British Columbia's property transfer tax exemption are stricter: you must never have owned a home or principal residence anywhere in the world. Check each program before you rely on it, and run the numbers with our land transfer tax calculator.
Does the new GST rebate apply to resale homes?
No. The First-Time Home Buyers' GST/HST rebate only covers newly built or substantially renovated homes, including owner-built homes. The purchase agreement must be signed with the builder on or after May 27, 2025, and before 2031. A resale home does not carry GST in most cases, so there is nothing to rebate. Our guide to the GST explains when the tax applies.
What is the maximum home price for a first-time buyer with less than 20% down?
As of October 18, 2026, insured mortgages are available on homes priced below $1.5 million. You need 5% on the first $500,000 and 10% on the portion above it. At $1.5 million or more, you must put down at least one-fifth of the price and mortgage insurance is not available. Our down payment calculator does the math for any price.
When do I have to repay a Home Buyers' Plan withdrawal?
Repayments normally start in the second year after the withdrawal and run for 15 years. The CRA has extended a temporary relief: if your first withdrawal is made between January 1, 2026, and December 31, 2028, the 15-year period starts in the fifth year after the withdrawal instead. Any missed repayment is added to your income for that year. Our RRSP guide covers how contributions and repayments interact.
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