First-Time Homebuyer Incentives in Canada

Last updated February, 2026. Program details verified against federal and provincial government sources.

Rising housing costs can make it challenging to buy a house in Canada, especially for first-time buyers. Fortunately, various government programs exist to help first-time homebuyers overcome financial barriers. These incentives can reduce the upfront costs of homeownership, provide tax benefits, or offer more favourable mortgage terms.

Key Takeaways

• The Home Buyers’ Plan allows withdrawals of up to $60,000 from your RRSP tax-free for a down payment.
• The First-Time Home Buyers’ Tax Credit provides up to $10,000 in tax relief for qualifying first-time buyers.
• The First Home Savings Account combines RRSP and TFSA benefits for tax-efficient home savings.
• The Canada First-time Homebuyer Incentive program was discontinued in March 2024.
• First-time homebuyers can now access 30-year amortization periods on insured mortgages.
• Provincial programs offer additional incentives, including land transfer tax rebates and exemptions.
• Multiple incentives can often be combined to maximize financial benefits.

What is a First-Time Homebuyer Incentive?

A first-time homebuyer incentive is a financial program or policy designed to make home ownership more accessible for those purchasing their first property. These incentives come in various forms, including:

• Tax credits
• Tax rebates
• Down payment assistance programs
• Withdrawal allowances from registered accounts
• Specialized mortgage options

The Canadian government, at both federal and provincial levels, offers these programs at both federal and provincial levels to address housing affordability challenges and support Canadians in achieving homeownership.

Federal First-Time Homebuyer Incentives

Home Buyers’ Plan

The Home Buyers’ Plan (HBP) is a federal program that allows first-time homebuyers to withdraw money tax-free from their Registered Retirement Savings Plan (RRSP) to finance their home purchase. For couples, this means a potential $120,000 towards your down payment. The program essentially lets you borrow from your future self, with a 15-year repayment period that begins two years after the withdrawal. According to the eligible first-time buyers can withdraw up to $60,000 from their RRSP under the Home Buyers’ Plan, with repayments spread over a maximum of 15 years.

To qualify for the HBP, you must be considered a first-time homebuyer, meaning you haven’t owned a home in the current calendar year or in the four previous calendar years. The property purchased must also be your principal residence, and you’ll need written confirmation of your intention to occupy the home within one year of purchase.

First-Time Homebuyers’ Tax Credits

The Home Buyers’ Amount is a non-refundable federal tax credit that allows eligible first-time buyers to claim up to $10,000 when purchasing a qualifying home, as outlined by the Canada Revenue Agency. The credit becomes available when you file your income tax return for the year in which you purchased your home.

Beyond the Home Buyers’ Amount, first-time buyers of newly constructed homes can benefit from GST/HST Housing Rebates, which return a portion of the sales tax paid on new housing. The rebate amount varies by province due to different HST rates, but it can provide thousands in tax relief on eligible properties.

For those relocating for work, business, or full-time post-secondary education, the Moving Expense Deduction offers additional tax benefits. To qualify, your new home must be at least 40 kilometres closer to your new work or school location, and eligible expenses can be deducted from income earned at the new location in that tax year.

The Government of Canada has proposed a new First-Time Home Buyers’ GST/HST Rebate targeting first-time buyers. This program would complement the existing New Housing Rebate program, but with enhanced benefits for those entering the housing market for the first time. Details are still being finalized, and the program isn’t yet available.

First Home Savings Account

The First Home Savings Account (FHSA) combines the best features of RRSPs and TFSAs into a specialized account for prospective homeowners. Introduced in 2023, the FHSA allows Canadians to contribute up to $8,000 annually with a lifetime maximum of $40,000. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free, offering dual tax advantages not available in other accounts. The First Home Savings Account program is administered by the Canada Revenue Agency and was introduced in the 2023 federal budget.

Account holders must be at least 18 years old, Canadian residents for tax purposes, and qualify as first-time homebuyers. The FHSA can remain open for up to 15 years or until age 71, whichever comes first. If you decide not to purchase a home, funds can be transferred to an RRSP or RRIF without affecting your contribution room.

First-Time Homebuyer Incentive

The First-Time Home Buyer Incentive, a shared-equity mortgage program administered by the Canada Mortgage and Housing Corporation, was officially discontinued in March 2024. The program is no longer accepting new applications.

Extended Amortization Options for First-Time Homebuyers

As of December 2024, first-time homebuyers in Canada can access 30-year amortization periods on insured mortgages, extending the standard 25-year maximum. This option applies to buyers with a down payment of less than 20 percent who require mortgage insurance, but otherwise meet the minimum down payment requirements. The extended amortization reduces monthly mortgage payments, improving affordability and helping more Canadians qualify for home financing. This policy change was announced by the Department of Finance Canada as part of broader housing affordability measures.

Provincial First-Time Homebuyer Incentives

First-Time Homebuyer Incentives in Ontario

First-time homebuyer incentives in Ontario include the Land Transfer Tax Rebate program, which provides rebates of up to $4,000. To qualify, buyers must be at least 18 years old, cannot have previously owned property anywhere in the world, and must occupy the home as their principal residence within nine months of purchase. For those buying in Toronto, the City of Toronto administers a separate municipal land transfer tax rebate for qualifying first-time buyers. Details of Ontario’s Land Transfer Tax Rebate program are administered by the Ontario Ministry of Finance.

First-Time Homebuyer Incentives in Quebec

Montreal’s Home Purchase Assistance Program provides financial support to families, single people, and couples purchasing their first property in Montreal. The program offers grants ranging from $5,000 to $15,000. The assistance amount varies by location and household composition, with higher amounts available for families with children under 18 and for properties within the downtown limits.

To qualify, buyers must be first-time homeowners or not have owned property in the previous five years. The property must be located within Montreal city limits and serve as the buyer’s principal residence for at least 3 years. The program caps eligible property values, with higher limits for families with children. Montreal’s Home Purchase Assistance Program is administered by the City of Montreal.

First-Time Homebuyer Incentives in BC

British Columbia offers a land transfer tax exemption for homes valued up to $835,000. Partial exemptions are available for homes valued between $835,000 and $860,000. Eligibility requires Canadian citizenship or permanent residency, BC residency for at least 1 year before the application, and no prior property ownership anywhere in the world.

BC also provides the Home Owner Grant, which reduces property taxes by up to $570 for homes in Metro Vancouver, Victoria, and the Fraser Valley, and up to $770 in the rest of the province. These programs make BC’s high-priced housing market somewhat more accessible, particularly for those looking outside the Vancouver metropolitan area. British Columbia’s land transfer tax exemptions and the Home Owner Grant are administered by the BC Ministry of Finance.

First-Time Homebuyer Incentives in Alberta

Alberta does not have a provincial land transfer tax, giving first-time buyers an immediate advantage compared to other provinces. While there are no specific provincial rebates for first-time homebuyers, the absence of the land transfer tax means savings of thousands of dollars compared to similar purchases in other provinces. Alberta does not charge a provincial land transfer tax, which is administered at the provincial level through general revenue rather than a property transfer tax.

First-Time Homebuyer Incentives in Saskatchewan

Saskatchewan offers the First-Time Homebuyers Tax Credit, which provides up to $1,050 in tax savings for qualifying buyers. This non-refundable income tax credit applies to homes purchased after December 31, 2011. To qualify, neither the buyer nor their spouse can have owned a home in the current or previous four calendar years, and the home must be registered in your or your spouse’s name.

First-Time Homebuyer Incentives in Manitoba

The Manitoba Affordable Homes Program provides financial assistance covering up to 25 percent of a home’s purchase price. This assistance includes an immediate down payment of 10 percent, which is forgiven after 5 years, or 15-25 percent, which is forgiven after 15 years of continuous homeownership. For households with incomes under $46,500, the full 25% assistance becomes available. Beyond the down payment, Manitoba Housing covers land transfer taxes, provides $1,500 for legal fees and closing costs, and offers an additional $1,000 for moving expenses when purchasing a vacant home. This program limits eligible properties to single-detached homes in select rural communities that must become the buyer’s principal residence and are owned by Manitoba Housing. These programs are administered by Manitoba Housing and related provincial agencies.

The First Time Home Purchase Program (FTHPP) specifically serves Manitoba’s Métis citizens, providing down payment grants up to 5 percent of the purchase price (maximum $18,000) and closing cost grants of 1.5 percent (maximum $2,500). Priority is given to applicants currently in social housing and families escaping situations of abuse or violence. Applicants must have at least 6 months of Manitoba residency and provide proof of Métis citizenship.

First-Time Homebuyer Incentives in New Brunswick

New Brunswick’s Home Ownership Program provides interest-free loans to households with incomes below $40,000. The program offers a loan of 40 percent of the purchase price for an existing home, or 50 percent up to $75,000 if building a house. These loans have no interest if the household income is below $30,000, and increase by 0.5 percent for each additional $1,000 of income.

First-Time Homebuyer Incentives in Nova Scotia

Nova Scotia offers the Down Payment Assistance Program, which provides interest-free loans of up to 5 percent of a home’s purchase price (maximum $25,000) to eligible first-time homebuyers. These loans are repayable over 10 years. Nova Scotia also offers a rebate program that provides up to $3,000 on the provincial portion of the HST when buying a newly constructed home. To qualify, the house must be your principal residence and must not be a substantially renovated property. Nova Scotia’s Down Payment Assistance Program is administered by Nova Scotia Housing.

First-Time Homebuyer Incentives in PEI

Prince Edward Island’s Down Payment Assistance Program helps first-time homebuyers with interest-free loans of up to 5 percent of the purchase price, up to a maximum of $17,500. To qualify, buyers must have household incomes under $100,000, be pre-approved for a mortgage, and purchase a home priced under $350,000. PEI also offers the Closing Cost Program, which provides up to $2,500 toward the home purchase closing costs. Prince Edward Island’s first-time buyer programs are administered by the provincial government.

First-Time Homebuyer Incentives in Newfoundland and Labrador

Newfoundland and Labrador offers the First-Time Homebuyers Program, providing a grant of 50 percent, up to $1,500, toward legal closing costs, and a repayable loan of up to 5 percent of the purchase price of a new or existing home. Eligibility requires a household income below $85,000 for full loan assistance or $95,000 for sliding-scale assistance, which reduces the loan amount by $500 for each additional $1,000 in income. The loan does not require repayment for the first 5 years after purchase.

First-Time Homebuyer Incentives in the Yukon

Yukon revealed a new First-Time Homebuyer Incentive in 2025. First-time homebuyers can receive loans of up to 50 percent of the down payment cost through a low-interest loan capped at 2.5 percent. To qualify for assistance, applicants must be first-time buyers, have mortgage pre-approval and be able to cover at least 50 per cent of the down payment and closing costs. Priority will be given to those who move to Yukon for post-secondary education. Yukon’s first-time homebuyer assistance programs are administered by the Government of Yukon.

First-Time Homebuyer Incentives in NWT

The Northwest Territories Housing Corporation offers a Home Purchase Program designed for first-time buyers. This program provides down payment assistance through a forgivable loan structure. Eligible first-time homebuyers receive either 5 percent of the home’s purchase price or an amount based on the Maximum Construction Costs (MCC) for the community, whichever is less. The program structures loan forgiveness on a sliding scale:

• Loans not exceeding $10,000 are completely forgiven after just one year of occupancy.
• Loans between $10,001 and $20,000 are forgiven after two years from the anniversary date.
• Loans of $20,001 to $30,000 are forgiven after three years from the anniversary date.

Northwest Territories’ first-time homebuyer assistance programs are administered by the Government of NWT.

First-Time Homebuyer Incentives in Nunavut

Nunavut’s housing market faces challenges due to extreme construction costs and limited supply. The territory addresses these through the Nunavut Down Payment Assistance Program, offering forgivable loans up to $80,000 for first-time homebuyers. This loan is completely forgiven if the buyer remains in the home for 10 years.

The Nunavut Homeownership Assistance Program provides support by offering up to $250,000 towards construction materials and shipping. Requirements focus on the ability to complete the construction. Applicants must include a build plan and demonstrate financial ability to pay ongoing costs. Nunavut’s first-time homebuyer assistance programs are administered by the Government of Nunavut.

How to Apply for a First-Time Homebuyer Incentive

• Research which incentives you qualify for based on your location, income, and home price range.
• Gather your financial documentation, including proof of income (T4s, pay stubs, Notice of Assessment), identification documents, bank statements, and confirmation of down payment funds.
• Contact a mortgage professional to get pre-approved for financing.
• Determine application timing carefully. Some programs must be applied for before closing, while others are claimed on tax returns after purchase.
• Fill out your application and submit it through the appropriate channel.
• Keep copies of all submitted documents and correspondence, including confirmation numbers and approval notifications.
• Follow up with the program administrator if you don’t receive acknowledgment within the expected timeframe.
• Once approved, ensure you understand any ongoing requirements, such as minimum occupancy periods or repayment schedules.
• After closing, maintain detailed records of your home purchase for tax purposes and future program compliance requirements.
• Review any repayment obligations annually, particularly for programs like the Home Buyers’ Plan that require yearly contributions back to your RRSP.

Combining Multiple First-Time Homebuyer Incentives

Combining multiple incentives can further reduce the financial burden of purchasing your first home. Most federal programs can be used simultaneously, allowing you to withdraw funds from your RRSP under the Home Buyers’ Plan, claim tax credits, and use money saved in your First Home Savings Account for the same purchase. These combined federal incentives alone can provide tens of thousands of dollars in assistance.

Provincial programs generally work alongside federal incentives without restriction. However, some provincial programs have restrictions preventing them from being combined with other provincial offers. Consulting with a mortgage professional who specializes in first-time buyer programs can help identify the optimal combination of incentives for your situation and location.

Mistakes to Avoid in First-Time Homebuyer Incentives

Misunderstanding Program Requirements

A common mistake is misinterpreting the definition of “first-time homebuyer.” Many assume this refers only to those who have never owned property, but most programs define it as not having owned property in the previous four calendar years. This means previous homeowners may qualify after a sufficient period without ownership.

Another frequent misunderstanding concerns residency requirements, which vary by program. Federal incentives generally require Canadian citizenship or permanent residency, while provincial programs often add local residency duration requirements.

Property requirements also cause confusion. Some incentives apply exclusively to newly constructed homes, while others are restricted to resale properties. Price caps vary, with urban areas typically having higher thresholds. Additionally, most programs require the property to serve as your principal residence, often with minimum occupancy periods ranging from one to ten years. Failing to maintain the property as your principal residence for the required period can trigger repayment requirements or tax penalties.

Application Errors

Incomplete documentation is one of the most prevalent application errors. Missing or outdated financial records, identification documents, or property information can delay approval or result in rejection. Each program has specific documentation requirements, and overlooking even minor items can jeopardize your application. Similarly, calculation errors when determining eligibility based on income thresholds or property values can lead to application denial, even when you might actually qualify.

Form submission issues also commonly occur. Some programs require paper applications submitted by mail, while others use online portals or require submission through financial institutions. Using outdated forms, missing submission deadlines, or applying through incorrect channels can invalidate your application.

Additionally, many applicants fail to retain copies of submitted materials, making it challenging to resolve discrepancies that may arise during the approval process. Creating a detailed checklist of required documents and submission procedures for each program you’re applying to can help prevent these errors.

Timing Issues

Poor timing of applications relative to your home purchase can render you ineligible for certain incentives. Some programs require an application before making an offer, while others must be initiated after a signed purchase agreement is in place, but before closing. For tax credits, timing your purchase within the appropriate tax year is essential for maximizing benefits. Missing these timing windows can result in forfeited benefits, regardless of whether you otherwise qualify.

Coordination problems between multiple programs can also create complications. When combining several incentives, each with different application windows and processing times, careful scheduling becomes critical. Creating a comprehensive timeline that accounts for all program application periods, processing times, and real estate transaction milestones can help avoid these costly timing errors.

FAQs About First-Time Homebuyer Incentives in Canada

What Qualifies Someone as a First-Time Homebuyer in Canada?

For most Canadian programs, a first-time homebuyer is someone who has not owned and lived in a home in the current calendar year and the four previous calendar years.

How Much Can I Save With the Home Buyers’ Plan?

The Home Buyers’ Plan allows you to withdraw up to $60,000 from your RRSP tax-free to put toward your home purchase, or $120,000 for couples.

Can I Use Multiple First-Time Homebuyer Incentives Together?

Yes, most first-time homebuyer incentives can be combined. However, some provincial programs cannot be combined with other provincial offers in the same jurisdiction. Always check the terms of each program you’re considering.

What Happened to the Canada First-Time Homebuyer Incentive Program?

The Canada First-time Homebuyer Incentive program was discontinued effective March 21, 2024, with applications accepted until March 31, 2024.

How Do First-Time Homebuyer Incentives Affect My Taxes?

Tax implications vary by program. Tax credits reduce liability, while down payment assistance programs generally have no tax implications unless repayment requirements are not met.

Do First-Time Homebuyer Incentives Apply to All Types of Properties?

No, first-time homebuyer incentives often have property type restrictions. Most programs apply to single-family homes, townhouses, and condominiums intended as principal residences. Investment properties, vacation homes, and rental properties typically don’t qualify. Always verify property eligibility requirements before counting on incentive programs for your purchase.

How Long Does It Take to Process First-Time Homebuyer Incentive Applications?

Processing times vary depending on the first homebuyer incentive. Tax credits claimed on annual returns typically follow standard tax processing timelines. Federal program applications can be processed in as little as 2-3 business days or up to 2 weeks, depending on your financial institution. Provincial programs generally take 4-6 weeks to be approved. It’s advisable to submit applications well in advance of when funds will be needed, ideally at least 6-8 weeks before your anticipated closing date.

What Documents Do I Need to Apply for First-Time Homebuyer Incentives?

Documentation requirements vary by program but typically include:

• Government-issued photo ID (passport, driver’s license)
• Proof of income (recent pay stubs, T4s, and Notice of Assessment from the CRA)
• Banking statements covering the past 90 days showing down payment funds
• Mortgage pre-approval letter from a recognized financial institution
• Signed purchase agreement or offer for the property
• Proof of first-time homebuyer status
• Provincial residency documentation (for provincial programs)
• Property information, including MLS listing or new construction details
• Marriage or common-law partner documentation (if applying as a couple)
• Tax returns from the previous 1-2 years
• Employment verification letter stating job position and income
• Proof of Canadian citizenship or permanent residency

Programs with income thresholds may request additional financial information. Tax-based incentives require relevant information to be included on your annual tax return.

Are There First-Time Homebuyer Incentives in Ontario for Condominiums?

Yes, first-time homebuyer incentives in Ontario do apply to condominium purchases.

Sources And Official Government Program Links

• Canada Revenue Agency – FHSA, HBP, and Home Buyers’ Amount
• Canada Mortgage and Housing Corporation – First-Time Home Buyer Incentive
• Department of Finance Canada – Federal housing affordability measures, including insured mortgage amortization policy changes
• Ontario Ministry of Finance – Ontario Land Transfer Tax and First-Time Homebuyer Rebate program administration
• City of Toronto – Municipal Land Transfer Tax and first-time homebuyer rebate programs administered by the City of Toronto
• Provincial and Territorial Housing Authorities – Down payment assistance programs, forgivable loan structures, and first-time buyer grants across provinces and territories