Buying your first home in Canada can feel overwhelming, but several programs and incentives can help make it more affordable. Here’s a condensed look at the key options available to first-time homebuyers.

Home Buyers’ Plan (HBP)

The HBP allows first-time buyers to withdraw up to $60,000 from their RRSPs for a down payment without immediate tax penalties. Couples can access up to $120,000 combined. Withdrawals must be repaid to your RRSP over 15 years. You’re considered a first-time buyer if you haven’t owned and lived in a home within the past four years.

First Home Savings Account (FHSA)

The FHSA combines features of an RRSP and TFSA. Contributions are tax-deductible, and withdrawals are tax-free when used to buy a home. You can contribute up to $8,000 per year, with a $40,000 lifetime limit. If unused for a home purchase, funds can be transferred to an RRSP or RRIF without affecting contribution room.

First-Time Home Buyer Incentive (Discontinued)

The CMHC shared-equity incentive, which offered 5–10% of a home’s purchase price to reduce mortgage payments, ended on March 31, 2024, and is no longer available to new buyers.

Tax Credits and Rebates

First-time buyers may also qualify for tax relief, including:

▪️Home Buyers’ Amount: Claim up to $10,000 on your tax return to help offset purchase costs.

▪️GST/HST New Housing Rebates: Partial rebates on GST/HST paid for new homes.

▪️Moving Expenses: Eligible moving costs may be deductible if your new home is at least 40 km closer to work or school.

▪️Proposed First-Time Home Buyers’ GST/HST Rebate: A new rebate has been proposed but is not yet available.

If affordability is holding you back, these programs may provide the support you need to take your first step into homeownership. A tax or real estate professional can help determine which incentives you qualify for. Contact me any time with real estate questions, such as how to make 2026 the year to own your first home!