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First-Time Home Buyer Incentives and Programs in Canada 2026

PUBLISHED August 14, 2026

TLDR

  • The Home Buyers’ Amount is a federal non-refundable tax credit that puts money back in your pocket at tax time.
  • 7 in 10 first-time home buyers plan on using the tax-free First Home Savings Account (FHSA) to build their down payment faster.
  • Eligible first-time home buyers can get a 5% GST rebate on newly built or substantially renovated homes.

You're not alone in seeing homeownership as a major milestone. According to a recent RBC’s Spring Home Ownership Poll, 80% of home buyers agree that buying a home is one of life's most significant financial achievements. Yet for 64% of first-time buyers, affordability is the biggest obstacle as many say they'd need a side hustle or second job just to make it happen.

That's why federal, provincial, and municipal governments have created programs specifically designed to help first-time buyers like you bridge the gap and move forward with confidence.

From the First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan to valuable tax credits and rebates, these programs work together to reduce your upfront costs and make homeownership more achievable than you might think.

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

To qualify as a first-time home buyer in Canada, you must be at least 18 years old and either a Canadian citizen or permanent resident of Canada. You or your spouse (or common-law partner) must also not have owned and lived in a home as your primary residence, whether in Canada or abroad, in the current or previous four calendar years. You must also intend to make the home you are purchasing your primary residence.

That said, eligibility criteria can vary depending on the program you're using. Each program has its own definition of what it means to be a first-time buyer, so it's worth checking the specific requirements before you apply.

Exceptions to the rule:

You may still qualify as a first-time home buyer even if you've owned a home before, under certain circumstances:

  • Separation or divorce: If you've separated from your spouse and no longer co-own a home together, you may still be eligible.
  • Disability: If you're living with a disability or purchasing a home for a disabled relative, you may qualify for certain first-time buyer benefits even if you owned a home in the past four years.
  • Four-year reset: If your first home purchase was more than four years ago, you may be eligible to access government programs again.

Federal first-time home buyer incentives and programs

The federal government offers a range of programs and incentives specifically designed to help make home ownership more affordable for first-time home buyers.

1. First-Time Home Buyers’ Tax Credit (HBTC)

What is the First-Time Home Buyers’ Tax Credit?

The First-Time Home Buyers' Tax Credit (HBTC) was introduced by the federal government to help eligible Canadians purchase their first home.

The credit amount is calculated by multiplying the lowest personal federal income tax rate for the year (currently 15%) by $10,000. That means a total allowable credit of $1,500 directly off what you may owe at tax time.

The HBTC is non-refundable, meaning it can only be used to reduce the amount of tax you owe, not generate a refund. You can claim it on your federal income tax return.

How do you qualify?

  • You, and anyone you purchase the home with, must qualify as a first-time home buyer
  • The home must be used as your principal residence. If you’re buying with a spouse, common-law partner, or even a friend, either one of you can claim the credit (or share it), as long as the combined total doesn’t exceed $1,500.

If you have a disability, or you're buying a home for a related person with a disability, the first-time home buyer requirement does not apply to you, and you could still qualify for the credit.

2. RRSP Home Buyers’ Plan

What is the Home Buyers’ Plan (HBP)?

The HBP is a federal government program that lets you withdraw money from your Registered Retirement Savings Plan (RRSP) and put it toward the purchase of your first home, completely tax-free, if you repay it within 15 years. It's one of the most powerful resources available to first-time buyers in Canada, and it lets you put your hard-earned savings to work right now, without losing them in the long run.

How much can you withdraw?

You can withdraw up to $60,000 from your RRSP. If you're buying with a spouse or common-law partner, you can each withdraw up to $60,000, for a combined total of up to $120,000.

You don’t have to withdraw it all at once, but you need to take out the total within one calendar year.

You can qualify for the RRSP HBP if:

  • You’re considered a first-time home buyer, meaning you (and your spouse or common-law partner) have not owned and lived in a home in the four years prior to the withdrawal, and for no more than 30 days before the withdrawal
  • You have a signed written agreement to buy or build a qualifying home
  • The home will be your principal residence within one year of purchase or construction
  • You're a resident of Canada at the time of withdrawal
  • The RRSP funds you plan to withdraw have been on deposit for at least 90 days

Note that HBP withdrawals from locked-in and group RRSPs are not permitted.

You can also qualify for the HBP if:

  • You’re buying or building a home for a related person with a disability, even if you don't meet the first-time buyer criteria yourself
  • It has been more than four years since you last owned and lived in a home

3. First Home Savings Account

What is the First Home Savings Account (FHSA)?

The FHSA is currently one of the most powerful tools available to first-time home buyers in Canada. It is a registered plan that is specifically designed to help you save for your first home faster and more efficiently.

Like an RRSP, your contributions are tax-deductible. This means that you can reduce your taxable income every year you contribute. And like a TFSA, your money grows tax-free.

FHSA at a glance
$8,000 Annual tax-deductible contribution limit
$40,000 Lifetime contribution limit per person
$80,000 Combined lifetime contribution limit for eligible couples
$0 Taxes owed on qualifying withdrawals for your first home
15 years Maximum participation period

Do you qualify?

To open an FHSA, you must:

  • Be a Canadian resident with a valid Social Insurance Number (SIN)
  • Be at least 18 years of age (19 in provinces/territories where that is the age of majority)
  • Be a first-time home buyer, meaning you (and your spouse or common-law partner) have not owned and lived in a home during the current year or any of the four preceding calendar years

How do contributions work?

You can contribute up to $8,000 per year, up to a lifetime maximum of $40,000. In the first year you open your FHSA, your participation room is $8,000; this is the maximum combined amount you can contribute and/or transfer from an RRSP to your FHSA that year. Your participation room only starts accumulating once your account is open, so the earlier you open one, the more flexibility you build.

Carrying forward unused room

If you don't contribute the full $8,000 each year, the unused amount carries forward to the next year, up to a maximum of $8,000. This means you could contribute up to $16,000 in a single year if you have carry-forward room available from the previous year.

For example, if you contributed $5,000 in 2025, you'd have up to $11,000 in available contribution room in 2026 ($3,000 carried forward plus the $8,000 annual limit).

One thing to keep in mind: a one per cent tax per month applies to any amount that exceeds your contribution room, so it's worth tracking your contributions carefully.

Start investing in an FHSA at RBC today!

4. GST/HST Rebate for New Build

Buying a newly built home just got more affordable. Under Bill C-4, now law as of March 12, 2026, the federal government's GST/HST Rebate for first-time buyers eliminates or significantly reduces the 5% Goods and Services Tax (GST), or the federal portion of the HST on newly constructed homes.

The savings can be significant, reaching up to $50,000 on a qualifying new home.

The rebate works on a sliding scale based on your home's purchase price:

Home value Rebate
$1,000,000 or less Up to 100% of GST paid – to a maximum of $50,000
Between $1M and $1.5M Partial rebate, reduced on a straight-line basis
$1,500,000 or above No rebate available

Do you qualify?

To be eligible, you must be a first-time home buyer who:

  • Has not lived in a home, whether in Canada or abroad, that you or your spouse (or common-law partner) owned as your primary place of residence at any time in the current calendar year or the preceding four calendar years
  • Entered into an agreement of purchase and sale with a builder on or after March 20, 2025, and before 2031 (for purchases from a builder), or began construction on or after March 20, 2025, and before 2031 (for owner-built homes)
  • Is the first person to occupy the home as a place of residence after construction or substantial renovation is substantially completed
  • Has not previously received the FTHB GST/HST rebate

The rebate is not available to corporations or partnerships.

The home must also be:

  • A newly constructed or substantially renovated home purchased from a builder
  • An owner-built home on land you own or lease
  • A share of the capital stock of a cooperative housing corporation

Have questions about whether you qualify? Connect with an RBC Mortgage Advisor who specializes in new builds, pre-construction, and owner-built homes. They can walk you through your options and help you make the most of every rebate available to you.

Provincial and Municipal First-Time Home Buyers Incentives

1. Land transfer tax rebates

What are land transfer tax rebates?

When you buy a home in Canada, most provinces and territories charge a land transfer tax (LTT), a one-time fee paid at closing, calculated as a percentage of your home's purchase price. It’s one of the largest closing costs you'll face.

The good news: several provinces, territories, and municipalities offer rebates specifically for first-time home buyers.

Ontario and Toronto

Ontario offers a FTHB refund of up to $4,000 on the provincial land transfer tax. This rebate completely covers the land transfer tax on homes priced up to approximately $368,000. For homes above that threshold, you receive the full $4,000 and pay the difference.

If you're buying in Toronto, a second municipal land transfer tax also applies. First-time buyers in Toronto can claim an additional municipal rebate of up to $4,475, for a combined total of up to $8,475 in land transfer tax savings.

To claim these refunds, your real estate lawyer applies them at closing via the electronic land registration system or by filing the Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers. If it's missed at registration, you can apply through the Ontario Ministry of Finance's online portal, no login required.

British Columbia

In BC, the land transfer tax is called the Property Transfer Tax. Rather than a post-purchase rebate, first-time home buyers can receive a full or partial exemption applied directly at closing:

  • Full exemption on properties with a fair market value of $835,000 or less, saving up to $8,000. To qualify, you must have lived in BC for at least one year before the registration date, or filed at least two BC income tax returns in the last six taxation years.
  • Partial exemption on properties valued between $835,000 and $860,000, tapering to zero
  • No exemption on properties above $860,000

Your real estate lawyer must complete the BC Property Transfer Tax Exemption Application and submit it to the Land Title Office along with the transfer documents. If it was missed at closing, you can file a Property Transfer Tax Refund request with the BC Ministry of Finance within 12 months of the registration date.

Prince Edward Island

First-time home buyers in PEI may be eligible for a full exemption from the real property transfer tax, meaning no transfer tax is owed at closing, provided all purchasers named on the deed meet the eligibility criteria. If there is more than one purchaser, all must qualify.

To claim the exemption, complete the Declaration First-Time Home Buyers form and have it signed by a notary public or commissioner for taking affidavits. Your real estate lawyer will submit it at closing.

If you haven't yet met the six-month residency requirement at the time of registration, you may still be eligible, you can apply for a refund of the transfer tax after occupying the home as your principal residence for 183 consecutive days.

2. Key details of provincial and municipal programs

Province/municipality First-time home buyer incentives
Alberta Albertans do not pay a land transfer tax, only a small title registration fee, which helps reduce closing costs.
British Columbia BC's First Time Home Buyers Program provides a full or partial exemption from the Property Transfer Tax, depending on the property's value.
Manitoba Manitoba does not offer a dedicated land transfer tax rebate for first-time buyers. The standard land transfer tax structure exempts the first $30,000 of a property's value for all buyers.
New Brunswick New Brunswick has no land transfer tax rebate for first-time buyers. However, the provincial Homeownership Assistance Program offers a repayable loan of up to 40% of the purchase price (including closing costs and minor repairs) for low- and modest-income first-time buyers with household income below $40,000.
Newfoundland and Labrador The First-Time Homebuyers Program provides a grant covering up to 50% of the legal closing costs (to a maximum of $1,500), plus a repayable loan of up to 5% of the purchase price, subject to maximum purchase price limits that vary by region.
Nova Scotia Nova Scotia offers two programs for first-time buyers. The First-time Homebuyers Program (launched February 2026) reduces the minimum down payment to 2% of the purchase price, less than half the usual minimum, on homes up to $570,000 in Halifax Regional Municipality and the Municipality of East Hants, and up to $500,000 elsewhere in the province. The Down Payment Assistance Program also provides an interest-free loan of 5% of the purchase price, repayable over 10 years, for eligible buyers who pre-qualify for an insured mortgage.
Ontario Ontario offers up to $4,000 in land transfer tax
refunds for first-time buyers, effectively eliminating LTT on homes up to $368,000.
Prince Edward Island Qualifying first-time home buyers may be eligible for a full exemption from the real property transfer tax, provided they meet all eligibility criteria including residency requirements and intend to occupy the property as their principal residence for at least 183 consecutive days.
Quebec As of the 2026 taxation year, Quebec offers a refundable tax credit of up to $5,875 to reimburse the real estate transfer duties paid to a municipality on a first principal residence. The credit phases out for properties with a basis of imposition exceeding $750,000 and disappears entirely at $1,000,000.
Montreal Home Purchase Assistance Program The City of Montréal's Home Purchase Assistance Program offers financial assistance to eligible buyers. For existing homes, families can receive a welcome tax rebate of $5,000 to $7,000, on properties with a maximum purchase price of $725,000. For new homes, lump-sum assistance ranges from $5,000 to $15,000. This can be combined with the new Quebec provincial credit for potential combined relief of up to $12,875 on an existing home purchase.
Saskatchewan Saskatchewan offers a non-refundable provincial income tax credit of up to $1,575 for eligible first-time home buyers. The credit is calculated at 10.5% on up to $15,000 of the qualifying purchase price, an increase of 50% effective for homes acquired on or after January 1, 2025.
Northwest Territories The NWT Housing Corporation's Home Purchase Program provides a forgivable down payment assistance loan for eligible first-time buyers. The forgiveness period depends on the loan amount: loans up to $10,000 are fully forgiven after 1 year; loans of $10,001–$20,000 are forgiven after 2 years; loans of $20,001–$30,000 are forgiven after 3 years.
Nunavut The Nunavut Housing Corporation (NHC) offers Homeownership Programs and supports to help Nunavummiut with housing affordability and the cost of homeownership.
Yukon Yukon's Home Owners Grant (HOG) reduces the amount of property tax payable on a principal residence. Eligible homeowners can receive up to 50% of property taxes owing, to a maximum of $450 (subject to a $100 minimum tax). Homeowners aged 65 and older can receive up to 75%, to a maximum of $500.

First-time home buyer supports for newcomers to Canada

Moving to a new country takes courage and buying a home here is no small feat. At RBC, we offer support designed specifically for newcomers, so you can move forward with confidence.

Connecting with an RBC Mortgage Advisor means getting personalized advice in up to 200 languages. We'll help you navigate your mortgage pre-approval, explore financing options tailored to your situation, and connect you with trusted realtors in your neighbourhood. When it comes to day-to-day banking, RBC Newcomer Advantage Banking is designed to make your first year in Canada easier. You'll enjoy no monthly fee banking for a full year, $0 transfer fees on International Money Transfers, which can make a real difference when you're moving money from abroad or receiving gift funds from family toward your down payment.

That's just the beginning of what RBC offers. Learn more about our mortgage options for Newcomers to Canada and discover the full range of support available to you.

Preparing for your homeownership journey in Canada also means getting familiar with two key rules that apply to every buyer, whether you just landed or have been settling in for a few years.

Minimum down payment rules in Canada

How much you need for a down payment depends on the price of the home you're buying. Here's how the minimum down payment rules break down:

Home price range Minimum required down payment
Up to $500,000
  • 5% of the total purchase price
$500,000 to $1,500,000
  • 5% of the total purchase price
  • 10% for the amount between $500,000 and $1,499,999
$1,500,000 or above
  • 20% of the total purchase price

Mortgage default insurance

Any down payment under 20% requires mortgage default insurance. Usually provided by the Canada Mortgage and Housing Corporation (CMHC), a federal government-owned organization, this insurance protects your lender if you're ever unable to make payments.

The insurance premium ranges from 0.6% to 4.5% of your total mortgage amount and is added directly to your mortgage balance, so there's no large upfront cost to worry about. And for newcomers still building their Canadian credit history, this solution means RBC can work with you to get you into your home sooner.

Ready to dive deeper? Get a clear picture of how mortgages work in Canada and what to expect at every step.

Can you combine different first-time home buyer benefits?

The short answer is, yes and the impact can be significant. Canada gives first-time buyers powerful tools like the FHSA, the HBP, and the HBTC that are designed to work together, helping you save more, spend less upfront, and move forward with confidence. Add in RBC offers and you're setting yourself up for every advantage available.

Combining government incentives

When you stack multiple government programs, the savings add up quickly. Take this example: a first-time buyer purchasing an $800,000 home in Toronto could combine the following:

  • FHSA savings: $40,000
  • RRSP Home Buyers' Plan withdrawal: $60,000
  • Ontario land transfer tax rebate: up to $4,000
  • Toronto municipal land transfer tax rebate: up to $4,475
  • First-Time Home Buyers' Tax Credit (HBTC): up to $1,500

That's potentially over $100,000 in combined financial support, bringing your first home closer than you might think.

Keep in mind that each program has its own eligibility rules, so it's worth checking the specific requirements to confirm what you qualify for.

2. Maximizing benefits with RBC offers

RBC adds extra value at every step of your home buying journey, starting before you even make an offer.

In the savings phase, help grow your down payment faster with a dedicated savings account.

When you're ready to buy, RBC's limited-time mortgage offer gives you the opportunity to earn cash and Avion Points rewards, all designed to put more value back in your pocket. Speak with an RBC Mortgage Advisor to find out what you may be eligible for and make the most of your mortgage options.

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Canada first-time home buyer programs FAQs

Yes. FHSA contributions are tax-deductible, up to $8,000 per year and $40,000 over your lifetime, meaning they reduce your taxable income in the year you contribute. When you're ready to buy, qualifying withdrawals are completely tax-free. Any unused contribution room (up to $8,000) carries forward to the following year.

You may also be eligible for the First-Time Home Buyers' Tax Credit (HBTC) which gives you a maximum tax reduction of $1,500 on the year you purchase your home.

To show your first-time home buyer status for Canadian tax purposes, you’ll generally need the following:

  • Agreement of Purchase and Sale: The signed contract confirming you purchased the home
  • Statement of Adjustments: prepared by your lawyer, outlining final costs and the closing date
  • Registered deed/conveyance: confirms the official transfer of ownership

If you're claiming specific incentives, you may also need:

  • Form GST190 for the GST/HST New Housing Rebate on a newly built home
  • Home Buyers' Plan confirmation found on your Notice of Assessment, confirming your RRSP withdrawal
  • Ontario Land Transfer Tax Refund Affidavit if claiming the Ontario provincial refund

Requirements can vary depending on the program or incentive you're claiming. For the most accurate and up-to-date guidance, visit the federal and provincial websites or speak with an RBC Mortgage Advisor.

It depends on the incentive and whether your co-signer is legally listed as a co-owner of the home.

For federal programs like the FHSA and RRSP Home Buyers' Plan, co-signing generally doesn't affect your eligibility. These benefits are tied to your own first-time buyer status and that of your spouse or common-law partner, not your co-signer's.

For provincial land transfer tax (LTT) rebates, however, the rules are stricter. If your co-signer is considered a legal co-owner and if they've previously owned a home, this might reduce your rebates. For example, the Ontario government states that to qualify for the LTT rebate, all purchasers on the deed must be first-time buyers who have never owned a home anywhere in the world. So, you may only qualify for a partial rebate proportional to your ownership share if you have a co-signer.

Yes, by contributing to your RRSP, you reduce your taxable income and potentially receive a tax refund. You can then withdraw those RRSP funds tax-free toward your home purchase through the federal Home Buyers' Plan (HBP), and put the refund toward your down payment too.

There is one important timing rule: your contributions must remain in the RRSP for at least 90 days before you withdraw them under the HBP. Withdrawing earlier may cause the Canada Revenue Agency (CRA) to disallow the tax deduction, costing you the tax benefit.

No, Home Buyers’ Plan (HBP) repayments do not reduce your RRSP contribution room. Because the money was already inside your RRSP before you withdrew it, the CRA treats repayments as a separate process from your regular annual contributions. To make a repayment, you contribute to your RRSP and then designate that amount as an HBP repayment on Schedule 7 of your tax return. That designated amount does not count toward your RRSP deduction limit, and importantly, it cannot be claimed as a tax deduction, since the original contribution was already deducted when you first made it.

Speak with a tax professional to make sure your repayments are designated correctly each year.

The HBP is a federal program but your bank still plays a role in processing your withdrawal, and there are circumstances where they might refuse your withdrawal request. This typically happens when specific CRA rules or account conditions haven't been met, not as a discretionary decision by the bank. The common reasons can include incomplete documentation, exceeding withdrawal limit (above $60,000) and not meeting CRA's HBP eligibility criteria.

When you're married or in a common-law relationship, either spouse can claim the First-Time Home Buyers' Tax Credit or you can split it, but eligibility depends on both of you meeting the first-time buyer criteria.

If both spouses qualify, you can split the claim between your tax returns in any proportion as long as the combined total doesn't exceed $10,000 (the maximum credit, worth up to $1,500). If only one spouse conditions, only the spouse that qualifies can claim the full amount. The other cannot claim any portion of it.

Since the HBTC is a non-refundable credit, it only reduces tax you already owe. If one spouse has a higher tax bill, it may make more sense for them to claim the larger share, as long as they qualify. Speak with a tax professional to determine the best approach for your situation.