First-time home buyer programs in Canada (and the money people leave behind)

1. The First Home Savings Account (FHSA)

The FHSA is the newest and arguably best tool for first-time buyers. Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home purchase are tax-free (like a TFSA) — the best of both. As of 2026 you can contribute up to $8,000 per year to a lifetime maximum of $40,000. If you have a few years before buying, opening one early is one of the smartest moves you can make. (Confirm current limits when you apply.)

2. The RRSP Home Buyers' Plan (HBP)

The Home Buyers' Plan lets you withdraw from your RRSP tax-free to put toward your first home, then repay it over 15 years. The withdrawal limit was raised to $60,000 per person, so a couple can access up to $120,000. Used alongside the FHSA, it can dramatically boost your down payment.

3. Land transfer tax rebates

Several provinces and municipalities charge a land transfer tax when you buy, and most offer a rebate for first-time buyers that can be worth thousands. This is where location matters: Ontario, B.C., and the City of Toronto have land transfer tax (and rebates), while Alberta has no land transfer tax at all — just smaller land title registration fees. We'll tell you exactly what applies where you're buying.

4. The Home Buyers' Amount tax credit

This is a federal non-refundable tax credit you claim on your return for the year you buy your first home. It's based on a $10,000 amount and is worth up to about $1,500 back at tax time — easy to claim and easy to forget.

5. The GST/HST new housing rebate

If you buy a newly built or substantially renovated home, you may recover part of the GST/HST you paid. This one is specific to new builds and the amount depends on price and province, but on a new home it can be significant.

How they stack

The real power is in combining them. A first-time buyer might save tax-free in an FHSA, top up the down payment with the Home Buyers' Plan, skip land transfer tax in Alberta (or claim a rebate elsewhere), and recover a tax credit at filing time — all on the same purchase. Each program has its own rules and timing, which is exactly where a broker earns their keep: making sure you don't leave anything on the table.