First-time home buyer programs in Canada

Buying a first home brings a handful of programs that each solve a different problem: saving for the down payment, using retirement savings to fund it, and reducing taxes at closing. They can often be used together. Below are the main federal and Ontario programs in our database, with their current status and the limits published on the official pages when we last checked.

Saving for the down payment: the First Home Savings Account

First Home Savings Account (FHSA) is ongoing. Our data summarises it as: A registered plan that lets first-time home buyers save for a qualifying first home tax-free, with deductible contributions.

Your FHSA participation room in the first year you open your FHSA is $8,000

Note from our research: Only the first-year room was confirmed from the page read; annual and lifetime limits are on linked CRA pages.

Using RRSP savings: the Home Buyers' Plan

Home Buyers' Plan (HBP) is ongoing. Lets first-time buyers withdraw from their RRSPs to buy or build a qualifying home without tax on the withdrawal, repaying it over time. It can be combined with a first home savings account withdrawal. The published limit reads:

HBP withdrawal limit is $60,000

This is a withdrawal of your own RRSP savings that you repay, not a grant. Repayment start is deferred to the fifth year after the first withdrawal for first withdrawals made 2026 to 2028.

Tax relief at purchase

Two programs reduce taxes tied to buying or building. The federal rebate applies to newly built or substantially renovated homes: First-Time Home Buyers' GST/HST Rebate is open, and its published terms say:

Provides a rebate of 100% of the GST (or federal part of the HST) for first-time home buyers on a new home valued up to $1 million

Homes valued between $1 million and $1.5 million receive a reduced rebate. Ontario rebate: up to $80,000 of the provincial part of the HST. The $50,000 federal maximum was not on the page and was removed.

Ontario's refund is separate: Land Transfer Tax Refund for First-Time Homebuyers is ongoing. The published terms:

Maximum refund of $4,000; no land transfer tax on the first $368,000 of consideration for eligible homes

Eligibility for each program is defined separately, including what counts as a first-time buyer, residency and how soon you must move in. Do not assume that qualifying for one means qualifying for another.

Putting them together

• Savings: contribute to the FHSA as early as you can, since the room accumulates under rules on the CRA page.
• Withdrawal: you can generally use the FHSA, the Home Buyers' Plan, or both for the same purchase, as stated in the program summaries above; confirm the combination rules on the official pages.
• Closing costs: budget for land transfer tax, and check whether you qualify for the refund. Plan for the rebate to be claimed through the process the program describes.
• Documents: keep your offer to purchase, closing documents and identification handy, since most claims ask for proof of purchase and occupancy.

A sensible order of operations

1. Read the official definition of a first-time buyer for each program. The definitions are not identical.
2. Open and fund the savings account early, and confirm how much RRSP money you may withdraw if you plan to use it.
3. Get mortgage pre-approval and budget closing costs, including land transfer tax, before making an offer.
4. Keep your documents together: offer, agreement of purchase and sale, identification and proof you will live in the home.
5. At closing, ask your lawyer which refunds and rebates they will claim for you and which you must claim yourself.

Other housing support

Programs for home upgrades and energy efficiency, local secondary-suite loans and accessibility credits are listed in our housing programs for individuals hub. For general benefits, see benefits and credits for individuals and families.

Before you act

Limits, rebate thresholds and tax rules change, and affordability decisions are personal. Treat this page as a map of what exists, confirm each program on its official page, and speak with a mortgage professional or accountant for advice on your own situation. This guide is general information, not financial, tax or legal advice.