Canada offers several programs to help first-time buyers get into the housing market. Here’s a comprehensive guide to every federal and provincial incentive available.
Table of Contents
Federal First-Time Home Buyer Programs
First Home Savings Account (FHSA)
The FHSA is Canada’s newest and most powerful home savings tool, combining RRSP and TFSA benefits:
Feature
Detail
Annual contribution limit
$8,000
Lifetime contribution limit
$40,000
Tax benefit on contributions
Tax-deductible (like RRSP)
Tax on withdrawal
Tax-free (like TFSA)
Eligibility
Canadian resident, 18-71, first-time buyer
Maximum years open
15 years
Can combine with HBP
Yes
Contribute $8,000/year for 5 years = $40,000 + investment growth, all withdrawn tax-free for a home purchase.
Home Buyers’ Plan (HBP)
Withdraw from your RRSP tax-free for a home purchase:
Feature
Detail
Maximum withdrawal
$60,000 per person ($120,000 per couple)
Repayment period
15 years
Annual repayment
1/15 of amount withdrawn
Eligibility
First-time buyer (or not owned in 4+ years)
Required RRSP holding period
90 days before withdrawal
Learn more in our RRSP guide .
Maximum Combined Tax-Free Savings for a Down Payment
Source
Per Person
Per Couple
FHSA
$40,000+ (with growth)
$80,000+
HBP (RRSP)
$60,000
$120,000
Total $100,000+ $200,000+
A couple can potentially use over $200,000 in tax-advantaged savings for a down payment.
Home Buyers’ Tax Credit (HBTC)
Feature
Detail
Credit amount
$10,000 (15% = $1,500 tax savings)
Eligibility
Purchased a qualifying home
How to claim
Line 31270 on tax return
GST/HST New Housing Rebate
If you buy a new home or substantially renovate:
Home Price
Federal GST Rebate (Max)
Under $350,000
Up to $6,300 (36% of GST)
$350,000–$450,000
Reduced on sliding scale
Over $450,000
$0 federal rebate
Provincial rebates may apply separately in Ontario, Nova Scotia, etc.
Provincial First-Time Buyer Programs
Ontario
Program
Benefit
Land Transfer Tax Refund
Up to $4,000
Toronto LTT Refund (additional)
Up to $4,475
Total potential savings
$8,475
Use our Ontario land transfer tax calculator for precise figures.
British Columbia
Program
Benefit
First Time Home Buyers’ Program (PTT exemption)
Save up to $8,000 on homes up to $500K
Partial exemption
Homes $500K–$525K
BC Home Owner Mortgage & Equity Partnership
Interest-free loan up to 5% of purchase price (select programs)
Use our BC land transfer tax calculator .
Alberta
Program
Benefit
No provincial land transfer tax
Saves thousands compared to other provinces
Alberta mortgage affordability
Among the best in Canada
See our Alberta mortgage affordability calculator .
Quebec
Program
Benefit
No land transfer tax exemption for first-time buyers
Quebec “Welcome Tax” applies to all buyers
Municipal grant programs
Some cities offer grants
Manitoba
Program
Benefit
First-Time Home Buyer Tax Credit
$10,000 credit (10.8% = $1,080)
Saskatchewan
Program
Benefit
First-Time Homebuyers’ Tax Credit
$10,000 credit (10.5% = $1,050)
Nova Scotia
Program
Benefit
No provincial first-time buyer exemption
Full deed transfer tax applies
Halifax First-Time Buyer Programs
Municipal programs may apply
New Brunswick
Program
Benefit
Land Transfer Tax
1% (relatively low)
No specific first-time buyer exemption
Prince Edward Island
Program
Benefit
First-Time Home Buyer Program
Up to $2,000 property transfer tax rebate
Down Payment Requirements in Canada
Home Price
Minimum Down Payment
Under $500,000
5%
$500,001–$999,999
5% on first $500K + 10% on remainder
$1,000,000+
20%
Examples
Home Price
Minimum Down Payment
CMHC Insurance Required?
$350,000
$17,500 (5%)
Yes
$500,000
$25,000 (5%)
Yes
$700,000
$45,000 (5%+10%)
Yes
$999,000
$74,900
Yes
$1,000,000
$200,000 (20%)
No
For detailed calculations, see our down payment calculator and mortgage insurance calculator .
Summary: Potential Savings for First-Time Buyers
Program
Maximum Benefit
FHSA (tax savings on $40K contribution, ~30% bracket)
~$12,000
HBP (RRSP tax deferral)
Tax-free access to $60K
Home Buyers’ Tax Credit
$1,500
Ontario LTT Refund
$4,000
Toronto LTT Refund
$4,475
BC PTT First-Time Exemption
$8,000
GST/HST New Housing Rebate
Up to $6,300
A first-time buyer in Toronto purchasing a new home could save $20,000+ across these programs.
Key Takeaways
The FHSA is the best new tool — tax-deductible contributions with tax-free withdrawals, up to $40,000Combine FHSA + HBP for up to $100,000 per person in tax-advantaged down payment savingsProvincial programs vary widely — Ontario and BC offer the most generous exemptionsMinimum down payment is 5% for homes under $500K, but 20% avoids CMHC insuranceClaim the Home Buyers’ Tax Credit ($1,500) — many first-time buyers miss this on their tax return