Four federal programs help first-time buyers. You can combine them: save in an FHSA, borrow from your RRSP, claim a tax credit when you buy, and get the GST back on a new home.
Who counts as a first-time buyer
For these programs you generally count as a first-time buyer if you did not live in a home that you or your spouse or common-law partner owned in the current year or the four years before. Each program has its own details, so check the source for the one you use.
First Home Savings Account (FHSA)
You can contribute $8,000 a year, up to $40,000 in total. Contributions are deductible like an RRSP, and a qualifying withdrawal to buy your first home is tax-free like a TFSA. Unused room of up to $8,000 carries forward to the next year. Source: CRA. Track your room with the FHSA calculator.
Home Buyers’ Plan (HBP)
You can withdraw up to $60,000 from your RRSPs to buy or build a qualifying home, and pay it back over 15 years. For a first withdrawal made from 2022 to 2028, repayments start in the fifth year after the withdrawal: a first withdrawal in 2026 means the first repayment year is 2031. A missed repayment is added to your income for that year. Source: CRA.
Two people buying together can each use the HBP, and an FHSA and the HBP can be used for the same home. See how much RRSP room you have with the RRSP calculator.
Home buyers’ amount (tax credit)
In the year you buy, you can claim up to $10,000 on line 31270 of your return. It is a non-refundable credit: it lowers the federal tax you owe at the lowest federal rate, but gives nothing back if you owe no tax. Buyers who are eligible for the disability tax credit, or buy for a related person who is, do not need to be first-time buyers. Source: CRA, line 31270.
First-time home buyers’ GST/HST rebate
On a newly built or substantially renovated home, a first-time buyer can get back the GST, or the federal part of the HST, up to $50,000. The full rebate applies up to $1 million. Between $1 million and $1.5 million it shrinks in a straight line, so a $1.25 million home gets half. There is no rebate at $1.5 million or more. The purchase agreement must be signed on or after March 20, 2025 and before 2031, and construction must be substantially complete before 2036. Owner-built homes qualify too. Source: CRA GST/HST memorandum 19-3-10.
Down payment and insurance
First-time buyers and buyers of new builds can choose a 30-year amortization on an insured mortgage. See the down payment calculator and the CMHC insurance calculator. Some provinces also refund part of the land transfer tax for first-time buyers; see the land transfer tax guides.
Official source
CRA · What is the Home Buyers’ Plan
This guide explains general rules. Confirm your figures with your lender, lawyer, or the official source before you act.