What programs are available for first-time home buyers in Canada?

Federal programs include the FHSA ($40,000 tax-free savings), RRSP Home Buyers'' Plan ($60,000), and First-Time Home Buyer Tax Credit ($1,500). Provinces offer additional land transfer tax rebates and grants.

How much can first-time buyers save on land transfer tax?

Ontario: up to $4,000 rebate. BC: Full exemption up to $500K, partial to $525K. Toronto: additional $4,475 rebate. Other provinces vary.

Can I use both FHSA and RRSP HBP?

Yes! You can combine FHSA ($40,000) and RRSP HBP ($60,000) for up to $100,000 tax-advantaged down payment per person, or $200,000 for a couple.

Who qualifies as a first-time home buyer in Canada?

You qualify as a first-time home buyer if you have not owned a home that was your principal residence in the last 4 calendar years (or ever). Your spouse/partner must also meet this requirement. This means you can qualify again if you sold your home more than 4 years ago.

What is the best order to use first-time home buyer programs?

Open an FHSA as early as possible (contributions are tax-deductible and grow tax-free). Maximize FHSA before adding to RRSP for HBP, since FHSA has no repayment requirement. At purchase, withdraw FHSA first (no repayment), then HBP (15-year repayment). Claim the $1,500 FTHB tax credit on your tax return. Apply for provincial land transfer tax rebates through your lawyer at closing.

First-Time Home Buyer Programs & Incentives Canada 2026: By Province

First-Time Home Buyer Programs Canada

Maximize your benefits as a first-time buyer with federal and provincial programs.

For a full buying roadmap, pair this with the first-time home buyer hub, the Home Buyers’ Plan guide, and the down payment rules by home price.

Federal Programs

1. First Home Savings Account (FHSA)

Feature	Details
Contribution limit	$8,000/year
Lifetime max	$40,000
Tax deduction	Yes (like RRSP)
Withdrawal	Tax-free for home
Repayment required	No

2. RRSP Home Buyers’ Plan (HBP)

Feature	Details
Maximum withdrawal	$60,000 per person
Couple combined	$120,000
Tax on withdrawal	None (if repaid)
Repayment period	15 years
Annual repayment	1/15 of total

3. First-Time Home Buyers’ Tax Credit

Feature	Details
Credit amount	$10,000 × 15% = $1,500
Eligibility	Did not own home in past 4 years
Split	Can split with spouse

Combined Benefit (Per Person)

Program	Max Amount
FHSA	$40,000
RRSP HBP	$60,000
Total	$100,000
Couple	$200,000

Provincial Programs by Province

Before choosing a city, run your cash requirements through the closing costs guide by province and your full mortgage affordability numbers so incentives are compared against real carrying costs.

Ontario

Program	Benefit
Land Transfer Tax Rebate	Up to $4,000
Toronto LTT Rebate	Additional $4,475
Total Toronto	$8,475

British Columbia

Program	Benefit
Property Transfer Tax Exemption	Full exemption up to $500K
	Partial exemption $500K-$525K
New home exemption	Up to $13,000
BC HOME Partnership	Was discontinued

Alberta

Program	Benefit
No land transfer tax	$0 savings built-in
First Place Program	Shared equity (select cities)

Quebec

Program	Benefit
Welcome Tax varies	No first-time rebate
Home Accessibility Tax Credit	For renovations

Manitoba

Program	Benefit
Land Transfer Tax Rebate	Up to $7,500
Eligibility	First home, principal residence

Saskatchewan

Program	Benefit
First-Time Home Buyers Tax Credit	Provincial credit
No land transfer tax on first home	If under threshold

Nova Scotia

Program	Benefit
Down Payment Assistance	Up to $25,000
New Builds	Additional incentives

New Brunswick

Program	Benefit
First-Time Home Buyers Program	Rebate available

PEI

Program	Benefit
Land Transfer Tax	Lower rate for first-time buyers

Newfoundland

Program	Benefit
First-Time Home Buyers Program	Conditions apply

Comparison: FHSA vs RRSP HBP

Feature	FHSA	RRSP HBP
Annual contribution	$8,000	Varies
Lifetime max	$40,000	Any amount
Withdrawal limit	$40,000	$60,000
Tax deduction	Yes	Yes (when contributed)
Repayment required	No	Yes (15 years)
Withdrawal taxed	No	No (if repaid)
Miss repayment	N/A	Added to income
Winner	Flexibility	Larger amount

Sample First-Time Buyer Scenario

Toronto, $700K purchase, 10% down payment

Item	Amount
Down payment needed	$70,000
FHSA contribution	$32,000
RRSP HBP	$38,000
Source of down payment	$70,000

Savings/Credits	Amount
Ontario LTT rebate	$4,000
Toronto LTT rebate	$4,475
FTHB tax credit	$1,500
Total savings	$9,975

Eligibility Requirements

FHSA Eligibility

Canadian resident
Age 18-71
Did not own a home in current year or previous 4 years
Did not live in a home owned by spouse

HBP Eligibility

First-time buyer (no ownership in past 4 years)
Have signed agreement to buy/build
Intend to live in home as principal residence

Land Transfer Tax Rebates

Generally: never owned home before (worldwide)
Must be principal residence
Some provinces: citizenship/residency requirements

Timeline for First-Time Buyers

When	Action
2+ years before	Open FHSA, start contributing
1 year before	Maximize FHSA, consider RRSP
6 months before	Get pre-approved
Purchase	Withdraw FHSA, RRSP HBP
Tax time	Claim FTHB credit

Provincial first-time buyer programs (2026 overview)

Province	Key program	Benefit
BC	PTT First-Time Buyer Exemption	Up to $8,000 tax savings (homes to $525K)
Ontario	Land Transfer Tax Refund	Up to $4,000 provincial rebate; Toronto buyers get additional $4,475 municipal rebate
Quebec	FTHB Credit (federal) + Welcome Tax partial rebate (Montreal)	$1,500 federal credit + up to $5,000 municipal rebate
Alberta	No provincial LTT	Alberta has no land transfer tax (significant savings vs ON/BC)
Manitoba	Land Transfer Tax Rebate	First-time buyers exempt on first $150K of property value
Nova Scotia	First-Time Home Buyer Rebate	Partial deed transfer tax rebate (varies by municipality)
PEI	Land Transfer Tax Rebate	Up to $2,000 for first-time buyers

CMHC First Home Buyer Incentive — Discontinued

The federal First Home Buyer Incentive (FHBI), which offered a shared-equity mortgage, was discontinued as of March 2024. If you were counting on this program, switch your planning to FHSA and RRSP HBP.

Frequently asked questions

Do first-time buyer programs stack with each other? Yes — most federal and provincial programs can be used together. A typical Ontario first-time buyer can simultaneously: use an FHSA (up to $40K tax-free), use RRSP HBP (up to $35K per person), claim the First-Time Home Buyers’’ Tax Credit ($1,500 credit), and claim the Ontario Land Transfer Tax Refund (up to $4,000). These programs are designed to be complementary.

Do I qualify as a first-time buyer if my spouse has owned a home before? For the federal First-Time Home Buyers’’ Tax Credit and FHSA, both you and your spouse/partner must be first-time buyers (no ownership in the preceding 4 years) for the household to qualify. Some provincial programs (e.g., Ontario LTT refund) also require both buyers on title to qualify. If your spouse has previously owned, you may only receive a partial benefit.