Mortgages
First-Time Home Buyer Programs in Canada
The federal programs that help first-time buyers: the FHSA, the Home Buyers’ Plan, the home buyers’ amount, the GST rebate on new homes and 30-year amortizations.
What is the First Home Savings Account (FHSA)?
A registered account for your first home. You can contribute $8,000 a year, up to $40,000 in total, and contributions are generally tax-deductible.
Unused room carries forward, up to $8,000 extra in a year. The account can stay open until the end of the year of its 15th anniversary or the year you turn 71, whichever comes first. Money you don’t use for a home can generally move to an RRSP or RRIF without immediate tax.
Put it into practiceMortgage affordability calculatorHow does the Home Buyers’ Plan work?
You can withdraw up to $60,000 from your RRSPs to buy or build a qualifying home, then repay it over 15 years.
First withdrawals from January 1, 2026 to December 31, 2028 start repaying in the fifth year after the withdrawal, instead of the second.
Are there tax credits and rebates?
Yes. You can claim the home buyers’ amount of up to $10,000 on your tax return, which reduces your federal tax. For new homes, the first-time home buyers’ GST/HST rebate can return up to $50,000.
The GST rebate covers all the GST on new homes valued up to $1 million and phases out between $1 million and $1.5 million. It applies to agreements signed from May 27, 2025 until the end of 2030.
Several provinces and some cities also offer land transfer tax rebates for first-time buyers; check your province’s rules.
Can first-time buyers get a longer amortization?
Yes. With less than 20% down, first-time buyers can choose a 30-year amortization instead of 25 years. It lowers the payment but adds interest and a 0.2% CMHC premium surcharge.
Who counts as a first-time buyer?
For the home buyers’ amount and the GST rebate, you generally qualify if you didn’t live in a home that you or your spouse or common-law partner owned in the current year or the previous four years.
Each program has its own rules, so check the CRA page for the one you’re using.
Keep reading
MortgagesClosing Costs When Buying a Home in CanadaWhat closing costs are, how much to budget, and which programs can lower them for first-time buyers.
MortgagesDown Payments and CMHC Mortgage Insurance in CanadaThe minimum down payment for any price, what CMHC insurance costs with less than 20% down, and where your down payment can come from.
Tax-free accountsCan You Use the FHSA and Home Buyers’ Plan Together in Canada?Yes. First-time buyers can withdraw from an FHSA and use the RRSP Home Buyers’ Plan for the same home, which can put up to $100,000 per person toward a down payment, plus FHSA growth.
BankingBest TFSA Savings Accounts and GIC Rates in CanadaWhere to keep cash in a TFSA: the best savings and GIC rates we track (2.80% savings, 3.75% for a 1-year GIC), how much your TFSA would earn, and what to check before you open one.
Official sources and further reading
- CRA: Contributing to your FHSA ↗
- CRA: Closing your FHSA ↗
- CRA: Home Buyers' Plan ↗
- CRA: Home buyers' amount (line 31270) ↗
- CRA: First-time home buyers' GST/HST rebate ↗
- Finance Canada: GST relief for first-time home buyers ↗
- Finance Canada: mortgage reforms in force December 15, 2024 ↗
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