Home Buying Programs & Incentives

Federal and provincial grants, tax programs, and savings incentives to help first-time home buyers.

Federal Programs

First Home Savings Account (FHSA)

Contribution Limit: Up to $8,000 per year

Lifetime Limit: $40,000

Tax Benefit: Contributions are tax-deductible; investment growth is tax-free. Withdrawals for home purchase are tax-free.

Eligibility: Canadian citizens, permanent residents, or temporary residents who have resided in Canada for 4+ years; never owned a home.

Usage: Withdraw funds tax-free to purchase your first home. Unused balance carries forward annually.

RRSP Home Buyers Plan (HBP)

Withdrawal Limit: Up to $60,000 from your RRSP

Tax Impact: Withdrawals are not taxed; must be repaid to RRSP over 15 years

Eligibility: First-time home buyers who have not owned a home in the past 4 calendar years

Usage: Withdraw funds before or up to 60 days after purchase. Repay starting the year following withdrawal.

Home Buyers Tax Credit (HBTC)

Claim Amount: Up to $10,000 on your tax return

Tax Benefit: 15% of the first $10,000 = $1,500 federal credit

Eligibility: First-time home buyers who purchased a principal residence in the current or prior year

Claim Method: Report on federal tax return in the year of purchase

GST/HST New Housing Rebate

Rebate Rate: Varies by province (5-15% depending on province and home price)

Maximum Home Price: $500,000 in most provinces

Eligibility: First-time home buyers purchasing a newly constructed or substantially renovated home

Claim Process: Claim filed by builder or directly to Canada Revenue Agency

Extended Mortgage Amortization

Extended Term: Up to 30 years (vs. standard 25 years)

Benefit: Lower monthly payments reduce initial payment shock

Eligibility: First-time buyers with mortgage insurance, down payment <20%

Cost: Higher total interest paid over life of mortgage

Maximum Insurable Mortgage Amount

Property Price Cap: $1.5 million maximum

Coverage: Mortgage default insurance available for qualified buyers on properties up to this price

Eligibility: Properties above $1.5 million require 20% down payment; no mortgage insurance available

Provincial Programs

Ontario

Land Transfer Tax Exemption: First-time buyers may be exempt on properties up to $500,000

Rebate: Up to 100% land transfer tax rebate (saves ~$15,000-$20,000 on avg. purchase)

Eligibility: Never owned residential property in Ontario; principal residence purchase

British Columbia

Property Transfer Tax Exemption: Up to 50% exemption for first-time buyers on properties under $500,000

First-Time Buyer Rebate: Up to $5,000 for properties <$475,000

Eligibility: First-time buyer status; principal residence

Alberta

Land Transfer Tax: No provincial transfer tax

Mortgage Insurance Costs: Lower overall closing costs compared to other provinces

First-Time Buyer Grants: Variable by municipality; check local programs

Quebec

Property Transfer Tax: Reduced rate for first-time buyers (0.5% vs. 1.5%)

Home Purchase Assistance: AccèsLogis and other provincial housing programs

Eligibility: Varies by program; income limits may apply

Saskatchewan

Land Titles Tax Exemption: No provincial transfer tax

First-Time Buyer Programs: Variable by municipality

Eligibility: Check with local housing authority

Manitoba

Property Transfer Tax: Reduced rate for first-time buyers on properties <$250,000

First-Time Buyer Exemptions: Varies; consult provincial land titles office

Eligibility: Never owned property in Manitoba

Nova Scotia

Land Transfer Tax Exemption: First-time buyers exempt on properties up to $500,000

Savings: Typically $5,000-$20,000 depending on purchase price

Eligibility: Principal residence; first property purchase

New Brunswick

Land Transfer Tax: No exemption; standard rates apply

First-Time Buyer Programs: Check with provincial housing ministry

Eligibility: Varies by specific program

Prince Edward Island

Land Transfer Tax: No provincial transfer tax

First-Time Buyer Grants: Variable programs; consult provincial government

Eligibility: Check with local housing programs

Newfoundland and Labrador

Land Transfer Tax Exemption: First-time buyers exempt on properties up to $500,000

Savings: Typical savings of $5,000-$25,000

Eligibility: Principal residence; first home

Next Steps

  • •Visit Canada.ca for complete federal program details and eligibility
  • •Provincial governments publish current incentive programs and eligibility requirements
  • •A tax accountant or financial advisor can help maximize available benefits
  • •Work with a mortgage broker to understand how programs affect your borrowing capacity