Overview
The federal and provincial governments offer a range of incentives to assist first-time homebuyers in Canada. These programs are designed to reduce the financial barriers to homeownership and help more Canadians get a foothold in the housing market. In 2026, the suite of available first-time buyer programs is the most comprehensive in Canadian history, reflecting the political priority placed on housing affordability.
First Home Savings Account (FHSA)
The First Home Savings Account is the federal government’s most significant new tool for first-time homebuyers. Contributing up to $8,000 per year (lifetime maximum $40,000) to an FHSA provides a tax deduction, tax-free growth, and tax-free withdrawal for a qualifying first home purchase — a triple tax advantage unavailable in any other registered account for this purpose. All eligible first-time buyers should open an FHSA as soon as possible to begin accumulating contribution room.
Home Buyers’ Plan (RRSP)
The RRSP Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 from their RRSP tax-free for a qualifying home purchase. The withdrawn amount must be repaid to the RRSP over 15 years. Combined with the FHSA, a first-time buyer couple can access up to $200,000 in registered savings for a down payment.
First-Time Home Buyers’ Tax Credit
The federal First-Time Home Buyers’ Tax Credit provides a non-refundable tax credit of up to $1,500 for qualifying first-time buyers who purchase a home in the year. While modest compared to the overall cost of a home purchase, it reduces the tax burden in the year of purchase and helps offset some transaction costs.
GST/HST New Housing Rebate
Buyers of new construction homes may be eligible for a partial rebate of the GST or HST paid on the purchase price, reducing the effective cost of purchasing a newly built home. The rebate is structured on a sliding scale and is subject to purchase price limits. This program incentivizes the purchase of new construction, which the government sees as important for addressing housing supply.
Provincial First-Time Buyer Programs
In addition to federal programs, most provinces offer their own first-time buyer assistance. Ontario’s First-Time Home Buyers’ Land Transfer Tax Rebate provides a rebate of up to $4,000 on provincial land transfer tax (and an additional amount on Toronto’s municipal LTT). BC offers a similar Property Transfer Tax exemption for qualifying first-time buyers. Other provinces have various rebate and assistance programs — buyers should research what is available in their specific province.
