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

Federal programs include: the First Home Savings Account (FHSA — tax-free savings up to $40,000), the Home Buyers' Plan (HBP — withdraw up to $60,000 RRSP tax-free), the First-Time Home Buyers' Tax Credit ($10,000 non-refundable credit worth $1,500 federally), and the GST/HST New Housing Rebate. Most provinces also offer land transfer tax rebates for first-time buyers. See our full programs table below.

How much do I need for a down payment in Canada?

The minimum down payment depends on the purchase price: 5% on the first $500,000, 10% on the portion between $500,000 and $999,999, and 20% on homes $1,000,000 and over. Homes under $1.5M with less than 20% down require CMHC mortgage default insurance. Most financial planners recommend 20% to avoid insurance premiums that can add $15,000–$30,000 to your mortgage.

What is the FHSA and how does it work?

The First Home Savings Account (FHSA) is a registered account combining RRSP and TFSA benefits. Contributions (up to $8,000/year, $40,000 lifetime) are tax-deductible. Growth is tax-free. Qualifying withdrawals for a first home are also tax-free. You must be a first-time buyer (no home owned in current year or prior 4 years) to open one. Unused contributions carry forward one year.

Can I use both the FHSA and the Home Buyers' Plan?

Yes — you can use both on the same home purchase. Withdraw tax-free from your FHSA (no repayment required), and also withdraw up to $60,000 from your RRSP via the HBP (must repay over 15 years). This allows a couple to access up to $80,000 FHSA + $120,000 HBP = $200,000 combined for a down payment from registered accounts.

What is the Home Buyers' Plan (HBP)?

The HBP allows first-time buyers to withdraw up to $60,000 from their RRSP tax-free to buy or build a qualifying home. You must repay the withdrawn amount to your RRSP over 15 years (starting the second year after withdrawal). If you miss a repayment, that amount is added to your income for the year.

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

You are considered a first-time buyer if you have not owned a home that you lived in as your principal residence at any time in the current calendar year or the preceding four calendar years. This is the definition used for HBP, FHSA, and the First-Time Home Buyers' Tax Credit. The FHSA also requires your spouse/common-law partner not to have owned a qualifying home during the same period.

First-Time Home Buyer Canada: Complete 2026 Guide

Buying your first home in Canada involves more financial decisions than almost any other purchase. This guide consolidates everything first-time buyers need to know: savings vehicles, government programs, down payment rules, provincial rebates, and the step-by-step process from pre-approval to closing.

How much can you access from government programs?

A couple buying their first home can access substantial assistance from registered accounts and tax credits:

Program	Individual Max	Couple Max	Repayment?
FHSA	$40,000	$80,000	None
RRSP Home Buyers’ Plan	$60,000	$120,000	Over 15 years
First-Time Home Buyers’ Tax Credit	$1,500 tax reduction	$1,500 reduction	None
GST/HST New Housing Rebate	Up to $6,300 (new builds)	Up to $6,300	None

Down payment requirements

Purchase Price	Minimum Down Payment
Up to $500,000	5%
$500,001 – $999,999	5% on first $500K + 10% on remainder
$1,000,000 and over	20% (no CMHC coverage available)
$1,500,000 and over	20% (price cap eliminated in 2025)

CMHC insurance premiums (on insured mortgages):

LTV (Loan-to-Value)	Premium (% of mortgage)
95% (5% down)	4.00%
90% (10% down)	3.10%
85% (15% down)	2.80%
80% (20% down)	No insurance required

On a $600,000 home with 5% down ($30,000), CMHC insurance adds $22,800 to your mortgage.

FHSA vs HBP — which should you use?

Feature	FHSA	RRSP / HBP
Annual contribution limit	$8,000	Based on 18% of prior income
Lifetime contribution limit	$40,000	No HBP-specific limit
Contribution tax deduction	Yes	Yes
Withdrawal tax-free	Yes (qualifying purchase)	Yes (must repay)
Repayment required	No	Yes — 15 years
Carry-forward if unused	1 year only	N/A
What if you never buy?	Roll into RRSP	N/A

Best strategy: Open an FHSA as soon as you think you might buy a home (even if it’s 5 years away). Your $8,000 annual contribution limit starts accumulating unused room — but only after you open the account. Pair with RRSP contributions for maximum down payment savings.

See: FHSA vs TFSA vs RRSP | Using Both FHSA and HBP

Federal and provincial programs

Federal programs

Program	Benefit	Who qualifies
FHSA	Tax-free savings up to $40K	First-time buyers under 71
Home Buyers’ Plan	RRSP withdrawal up to $60K	First-time buyers with RRSP
First-Time Home Buyers’ Tax Credit	$10,000 credit ($1,500 tax reduction)	First-time buyers of qualifying homes
GST/HST New Housing Rebate	Up to 36% of GST paid	Buyers of new or substantially renovated homes
Multigenerational Home Renovation Tax Credit	Up to $7,500	Adding secondary suite for family member

Provincial programs

Province	Program	Benefit
Ontario	Land Transfer Tax Rebate	Up to $4,000
BC	Property Transfer Tax Exemption	Up to $8,000 (homes under $835,000)
PEI	Land Transfer Tax rebate	Full exemption on first $200,000
New Brunswick	HST New Housing Rebate	Provincial portion
Nova Scotia	First Home tax credit	Up to $2,000
Alberta	No land transfer tax	No rebate needed

See the complete province-by-province guides below.

Step-by-step: buying your first home

Check your credit score — lenders want 680+ for best rates; 720+ for insured mortgages
Save your down payment — use FHSA first, then RRSP HBP, then unregistered savings
Get pre-approved — confirms your budget, locks your rate for 90–120 days
Hire a buyer’s agent — paid by the seller in most provinces
Make an offer — deposit (typically 1–5% of price) is due within 24 hours of acceptance
Complete due diligence — home inspection, title search, review strata docs (condos)
Finalize mortgage — submit employment, income, and down payment documentation
Closing costs — budget 1.5–4% of purchase price (legal fees, title insurance, adjustments)
Close — transfer funds, receive keys

Stress test and affordability checks

Even with a down payment ready, mortgage qualification is governed by the federal stress test.

Item	Rule of thumb
Stress test qualifying rate	Greater of contract rate + 2% or benchmark minimum
Gross Debt Service (GDS)	Target under ~39%
Total Debt Service (TDS)	Target under ~44%
Emergency liquidity after closing	3-6 months of core expenses

Run your affordability two ways before bidding: what the lender will approve, and what still leaves room for savings after ownership costs.

First-time home buyer articles

FHSA guides

Home Buyers’ Plan (RRSP)

Down payment

Buying process & programs

Tax credits & incentives

Province-specific guides

Buying decisions and readiness

Mortgages & Rates — Today’s rates, lender comparison
Housing Market — Market trends and forecasts
FHSA Guide — Tax-deductible first-home savings and withdrawal rules
TFSA Guide — Use your TFSA for down payment savings
RRSP Guide — Maximize RRSP for the Home Buyers’ Plan
Credit Scores — Build your score before applying
Property Types — Condo vs house vs townhouse for your first purchase

Decision framework

A strong hub helps readers choose a path quickly instead of reading every article linearly. Start by mapping your situation, time horizon, and risk tolerance, then pick the relevant subtopic branch.

Decision input	What to clarify first
Time horizon	Immediate action, this year, or long-term planning
Financial impact	High-stakes decision or low-stakes optimization
Complexity level	Simple setup, moderate comparison, or advanced strategy
Evidence needed	Rule-of-thumb decision or data-backed model

When the decision has tax, legal, or debt implications, prioritize the framework articles first and then move into specific calculators and implementation guides.

Implementation checklist

Use this checklist to translate research into execution:

Define the exact outcome you are trying to achieve.
Collect baseline numbers before changing strategy.
Compare at least two practical options using the same assumptions.
Document your final decision and next review date.
Revisit after any major income, family, rate, or policy change.

Most mistakes come from skipping the baseline and jumping directly to action. A documented process improves decision quality and reduces costly reversals.

Common mistakes and how to avoid them

Common mistake	Better approach
Chasing one metric in isolation	Evaluate full cash-flow, tax, and risk impact
Using generic assumptions	Adapt inputs to your province, income, and timeline
Delaying implementation too long	Start with a conservative version and refine quarterly
Ignoring downside scenarios	Test best case, base case, and stress case

A hub page should function like a control panel: clear sequencing, practical ranges, and explicit trade-offs for real-world decisions.