First-time home buyer programs in Canada
Buying a first home in Canada is expensive, but several federal and provincial programs are designed to help — mostly by making your down payment easier to build and cutting some upfront taxes. Here are the ones that actually exist as of 2026, and how they fit together. Confirm current limits and eligibility with the CRA and your province before you rely on any figure.
The FHSA — the newest and often the best
The First Home Savings Account (FHSA) combines the best of an RRSP and a TFSA for first-time buyers: contributions are tax-deductible going in, and qualifying withdrawals for a first home come out completely tax-free.
You can contribute up to $8,000 per year, to a lifetime limit of $40,000. For many first-time buyers, maxing the FHSA is the single most efficient way to build a down payment.
Keep reading: The FHSA, explained · How much down payment you need. For the official rules, see CRA — First Home Savings Account (FHSA).
The RRSP Home Buyers' Plan (HBP)
The Home Buyers' Plan lets you withdraw from your RRSP to buy or build a first home without immediate tax. As of the 2024 change, the withdrawal limit is up to $60,000 per person (so up to $120,000 for two eligible buyers).
You repay the amount to your RRSP over 15 years; miss a year's repayment and that portion is added to your taxable income. Confirm current rules and any repayment-grace provisions with the CRA.
You can use the FHSA and the HBP together for the same purchase, which is why many buyers build a down payment across both.
Tax credits and rebates
- The Home Buyers' Amount is a federal non-refundable tax credit on a $10,000 base for first-time buyers (worth up to about $1,500).
- The GST/HST New Housing Rebate can return part of the tax on a new or substantially-renovated home; separately, governments have moved to remove GST for first-time buyers on qualifying new homes — check current eligibility.
- Land transfer tax rebates for first-time buyers exist in Ontario, Toronto, British Columbia and Prince Edward Island, and can save thousands. Amounts and rules are provincial (and municipal in Toronto).
One program that has ended
The First-Time Home Buyer Incentive (the shared-equity program) was discontinued in 2024 and is no longer accepting applications. If you see it recommended in older articles, it's out of date — focus on the FHSA, HBP, tax credits and land-transfer rebates instead.
Frequently asked
Can I use the FHSA and the Home Buyers' Plan together?
Yes. You can withdraw from an FHSA and use the RRSP Home Buyers' Plan for the same home purchase, as long as you meet each program's conditions. Confirm details with the CRA.
Who counts as a first-time home buyer?
Generally, someone who hasn't owned a home they lived in during the current year or the previous four calendar years — but each program has its own precise definition, so check the CRA and provincial rules.
Sources
General information for Canadian readers, not individualized financial, tax or investment advice. Figures reflect the date reviewed; confirm current limits and rules with the CRA or a qualified professional before acting.