First-time home buyer programs in Canada, all in one place (2026)

By ChowChow Labs · Published October 28, 2026 · Programs checked against CRA, FCAC and provincial sources in October 2026

First-time buyers in Canada can use more than half a dozen federal and provincial programs, but they’re spread across the CRA, your bank, your lender and your province. This guide puts them in one place, with what each is worth, who qualifies, and when you use it.

Who counts as a first-time buyer?

Most programs use the same idea: you haven’t lived in a home that you or your spouse or common-law partner owned in the current year or the previous four calendar years. So you can be a “first-time buyer” again after a gap. Each program has its own details, though. Land transfer tax rebates in particular are usually stricter, and often require that you have never owned a home anywhere. Check the rules for each one.

The programs at a glance

Saving for the down payment: FHSA and Home Buyers’ Plan

The FHSA lets you contribute $8,000 a year, up to $40,000, and deduct each contribution from your income. When you buy a qualifying first home, you withdraw it all tax-free with nothing to repay. Contribution room only starts once the account is open, so open one as soon as you think you might buy, even with a small deposit.

The Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP without tax. You repay it to your RRSP over 15 years; skipped repayments are added to your income. Contributions made less than 90 days before you withdraw them may not be deductible, so put the money in early.

You can use both for the same purchase. A couple who both qualify can combine up to $80,000 from FHSAs and $120,000 from the Home Buyers’ Plan. Our guide to RRSP vs TFSA vs FHSA shows how much tax the deductions save at different incomes.

Buying a new home: the GST/HST rebates

Since March 2026, first-time buyers of a newly built or substantially renovated home can get back the full 5% GST, or the federal part of the HST, on a home valued up to $1 million, a rebate of up to $50,000. Between $1 million and $1.5 million the rebate shrinks on a sliding scale, and at $1.5 million or more there’s none. It is a top-up to the existing GST/HST new housing rebate that all new-home buyers can claim.

In Ontario, a separate provincial rebate covers up to $80,000 of the provincial part of the HST for first-time buyers, using the same eligibility conditions as the federal rebate. On a new Ontario home up to $1 million, the two together can remove most or all of the HST. The home has to be your primary residence, and agreement and construction dates matter, so check the CRA’s conditions before you sign.

On your tax return: the home buyers’ amount

In the year you buy, claim $10,000 on line 31270 of your return. It’s a non-refundable credit at the lowest federal rate, which is 14% for 2026, so it’s worth up to $1,400 off your federal tax. A couple can split it, as long as the total is no more than $10,000. Many first-time buyers simply forget to claim it.

At closing: land transfer tax rebates

Land transfer tax is paid in cash at closing, and first-time buyer rebates can cut it sharply. On a $600,000 resale home:

Ontario’s rebate is worth up to $4,000, and Toronto adds up to $4,475 of its own. BC exempts the tax on the first $500,000 for homes up to $835,000, with a partial exemption just above that. Other provinces have their own rules. See every price level in our land transfer tax comparison.

Mortgage rules that help first-time buyers

• A smaller minimum down payment. 5% of the first $500,000 and 10% of the part from $500,000 up to $1.5 million. At $1.5 million or more you need 20%.
• 30-year amortization on insured mortgages. First-time buyers with less than 20% down can spread an insured mortgage over 30 years instead of 25, which lowers the payment. It costs more interest over time, and the insurance premium is slightly higher.
• Mortgage default insurance. Required with less than 20% down, and usually added to the mortgage. In Ontario, Quebec and Saskatchewan, provincial sales tax on the premium is due in cash at closing.

Our affordability calculator applies all of these, plus the stress test, to show the highest price you could qualify for.

A simple timeline

1. Now: open an FHSA, even if you only contribute a little.
2. Each year: contribute to the FHSA, and consider an RRSP if you might use the Home Buyers’ Plan.
3. At least 90 days before buying: put in any RRSP money you plan to withdraw, so the contribution stays deductible.
4. When you make an offer: confirm which rebates you qualify for with your lawyer or notary, especially for a new build.
5. At closing: your lawyer applies the land transfer tax rebate.
6. At tax time: claim the home buyers’ amount, and report FHSA and Home Buyers’ Plan withdrawals.

Sources

• Canada Revenue Agency, First Home Savings Account
• Canada Revenue Agency, What is the Home Buyers’ Plan
• Canada Revenue Agency, First-time home buyers’ GST/HST rebate, including the Ontario first-time home buyers’ rebate
• Canada Revenue Agency, Line 31270, home buyers’ amount
• Financial Consumer Agency of Canada, Down payment rules
• Government of Ontario, Calculating land transfer tax

Programs and conditions change, and each has detailed rules. This guide is general information, not financial, tax or legal advice. Confirm your eligibility with the CRA, your lender and your lawyer or notary before you rely on any rebate.

Written and checked by the ChowChow Labs team, following our editorial policy. Spot a mistake? Tell us and we’ll check it against the source and fix it.