For many Canadians—especially young professionals and families, buying a first home is one of the most exciting and important financial milestones. But with rising home prices, stricter lending policies, and increasing costs of living, it can also feel overwhelming.
Fortunately, several national programs are designed specifically to support first-time home buyers. Whether you’re planning to purchase your first home this year or just starting to save, understanding how these programs work can help you move forward with confidence and potentially save you thousands of dollars.
Below, we’ve outlined the most relevant first-time home buyer programs available in Canada as of 2025, how they work, and how to make the most of them.
1. The First Home Savings Account (FHSA)
The FHSA is one of the newest and most powerful tools for first-time buyers. Introduced in 2023, this registered savings account blends the best features of both an RRSP and a TFSA.
- You can contribute up to $8,000 per year, with a lifetime maximum of $40,000
- Contributions are tax-deductible, and
- Withdrawals used for a qualifying home purchase are completely tax-free
To qualify, you must be a Canadian resident aged 18 or older and considered a first-time buyer.
This account is ideal for those looking to build a down payment with tax advantages and unlike the RRSP, you don’t have to repay the withdrawn funds later. Best of all, it can be used in combination with the RRSP Home Buyers’ Plan.
2. Home Buyers’ Plan (HBP)
The Home Buyers’ Plan allows you to withdraw funds from your RRSP to help buy your first home, tax-free—provided you pay it back over time.
- You can now withdraw up to $60,000 per person (increased from $35,000)
- The repayment period is 15 years, beginning the second year after your purchase
- You must be a first-time buyer (or haven’t owned a home in the past four years)
For couples, this means a potential combined withdrawal of $120,000—without having to liquidate non-registered savings.
This program can significantly boost your down payment and help you qualify for a better mortgage rate or a more desirable home.
3. First-Time Home Buyers’ Tax Credit (HBTC)
This credit helps offset some of the legal fees, inspections, and other closing costs that come with buying a home.
- The credit is worth up to $10,000, resulting in about $1,500 in tax savings
- You must live in the home as your primary residence and be a qualifying first-time buyer
While not as widely discussed as other programs, this credit can help you free up cash at closing time.
4. GST/HST New Housing Rebate
If you’re buying a newly built home, a majorly renovated property, or a new condo, you may qualify for a partial rebate on the federal portion of the GST or HST.
- Applies to homes purchased for $450,000 or less (with partial rebates up to $550,000)
- Available to both first-time and repeat buyers, as long as the home is your primary residence
If you’re purchasing a new build or pre-construction property, this rebate can return thousands of dollars to your budget money that’s often needed for furnishings, landscaping, or moving costs.
What About Alberta?
Alberta currently does not offer a provincial first-time home buyer rebate like Ontario or BC. However, there are local and builder-based incentives that can still provide financial support.
Examples include:
- Builder-led down payment assistance programs (such as from Rohit Communities or Lincolnberg)
- Non-profit housing organizations, such as Civida or Right at Home Housing Society, which support affordable homeownership
- Occasional municipal incentives or programs through partnerships with developers
These programs often have income limits or unit-specific rules, so it’s important to speak with a local real estate agent or mortgage advisor who can help you identify what’s currently available.
Who Qualifies as a First-Time Home Buyer?
You’re typically considered a first-time home buyer in Canada if:
- You haven’t owned a home in the past four years, and
- You plan to live in the home as your primary residence
In some cases, even if you’ve owned a home in the past, you may requalify after the four-year window—something worth confirming with your accountant or mortgage professional.
How to Optimize Your PositionBuying your first home is one of the few wealth-building opportunities in Canada that comes with real government support. But timing and strategy matter.
Here’s how to make the most of it:
- Open a First Home Savings Account (FHSA) as early as possible—even if you’re not ready to buy yet. The tax benefits grow year over year.
- Use the Home Buyers’ Plan (HBP) to unlock additional funds from your RRSP without immediate tax consequences.
- Work with a qualified mortgage broker who understands how to structure your financing using both FHSA and HBP programs.
- Speak with us as your real estate agents about builder incentives, down payment assistance, or grant programs that aren’t widely advertised.
- Stay informed. These programs evolve over time, we stay up to date so you don’t have to.
Our job is to guide you through each step with clarity, so you can focus on making confident decisions and feel supported at every stage of the journey.
Can These Programs Be Combined?
Yes, and often they should be.
A well-prepared first-time buyer could:
- Save $40,000 in an FHSA
- Withdraw $60,000 from their RRSP via the Home Buyers’ Plan
- Receive a $1,500 tax credit through the HBTC
- Apply for a GST rebate on a new build
Used together, these programs can unlock over $100,000 in tax-efficient savings and dramatically improve your buying power.
Final Thoughts
Becoming a homeowner for the first time is more than just a financial decision, it’s a lifestyle investment and a step toward long-term stability. With the right tools and guidance, it doesn’t have to be overwhelming.
Whether you’re starting to save or already attending showings, we’re here to help you understand your options, access the right resources, and take the stress out of the process.
Let’s build your homeownership roadmap—one step at a time.
