First-Time Home Buyer Programs in Canada (2026 Guide)
Buying your first home in Canada comes with a meaningful package of government assistance — some of which can save you $20,000–$40,000 at purchase and tens of thousands more over your amortization.
First Home Savings Account (FHSA)
The FHSA is the most powerful first-time buyer program introduced in a generation. It allows eligible first-time buyers to:
- Contribute up to $8,000/year (lifetime maximum $40,000)
- Deduct contributions from taxable income (like an RRSP)
- Withdraw funds tax-free to buy a qualifying home (like a TFSA)
- Carry forward unused annual room — up to $8,000 extra from the previous year
The FHSA uniquely combines RRSP tax-deduction benefits with TFSA tax-free withdrawal benefits. A couple who each maxes their FHSA at $40,000 can withdraw $80,000 tax-free toward a down payment, having received full income-tax deductions on the contributions.
Home Buyers' Plan (HBP)
The HBP lets first-time buyers withdraw up to $60,000 from their RRSP tax-free to use toward a down payment. Couples can each withdraw $60,000 for a combined $120,000. You must repay the withdrawal to your RRSP over 15 years.
Land Transfer Tax rebates
- Ontario: Up to $4,000 rebate on the provincial LTT
- City of Toronto: Up to $4,475 additional rebate on the municipal LTT
- British Columbia: Full exemption if purchase price ≤ $500,000; partial exemption up to $835,000
- PEI: Full rebate on the first $200,000 of land transfer tax
30-year amortization for new builds
First-time buyers purchasing a newly built home can access 30-year amortization on an insured mortgage. Extending from 25 to 30 years reduces your monthly payment by roughly 8–10% at current rates.
First-Time Home Buyer's Tax Credit
This federal non-refundable tax credit is worth up to $1,500 (15% of a $10,000 claim). You claim it the year you buy.
The programs are designed to stack. Use our calculator to model how different down payment amounts change your monthly payment.
