First-Time Buyer Programs
8 min read
Canada has multiple programs specifically designed to help first-time buyers. Used strategically, these can save you tens of thousands of dollars.
First Home Savings Account (FHSA)
Introduced in 2023. Allows first-time buyers to save up to $40,000 ($8,000/year) in a tax-free account. Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home purchase are tax-free (like a TFSA). The best of both worlds — use it if you haven't bought.
Home Buyers' Plan (HBP)
Withdraw up to $60,000 from your RRSP ($120,000 per couple) tax-free to buy or build a qualifying first home. Must be repaid to your RRSP over 15 years or the outstanding amount is included in your income. Works best when combined with FHSA withdrawals.
Land Transfer Tax Rebates
• Ontario: Up to $4,000 rebate for first-time buyers • Toronto: Additional municipal rebate up to $4,475 • BC: Full PPT exemption on homes under $835,000 • Prince Edward Island, Montreal: Provincial/municipal rebates available
First-Time Home Buyers' Tax Credit
A federal non-refundable tax credit of $10,000, worth up to $1,500 in tax savings, available to first-time buyers in the year they purchase a qualifying home. Claim it on your T1 return.