First-Time Home Buyer Incentive (FTHBI) Canada: Programs & Grants (2026)

By WealthVieu · Updated
This article is based on data from official government and regulatory sources. How we ensure accuracy

First-Time Buyers: Programs, down payment strategies, and the buying process in our First-Time Home Buyer Guide.

For stress-test rules, debt-ratio planning, and full scenario modelling, see the Canada Mortgage Affordability hub.

Canada offers several programs to help first-time buyers get into the housing market. Here’s a comprehensive guide to every federal and provincial incentive available.

Federal First-Time Home Buyer Programs

First Home Savings Account (FHSA)

The FHSA is Canada’s newest and most powerful home savings tool, combining RRSP and TFSA benefits:

Feature Detail
Annual contribution limit $8,000
Lifetime contribution limit $40,000
Tax benefit on contributions Tax-deductible (like RRSP)
Tax on withdrawal Tax-free (like TFSA)
Eligibility Canadian resident, 18-71, first-time buyer
Maximum years open 15 years
Can combine with HBP Yes

Contribute $8,000/year for 5 years = $40,000 + investment growth, all withdrawn tax-free for a home purchase.

Home Buyers’ Plan (HBP)

Withdraw from your RRSP tax-free for a home purchase:

Feature Detail
Maximum withdrawal $60,000 per person ($120,000 per couple)
Repayment period 15 years
Annual repayment 1/15 of amount withdrawn
Eligibility First-time buyer (or not owned in 4+ years)
Required RRSP holding period 90 days before withdrawal

Learn more in our RRSP guide.

Maximum Combined Tax-Free Savings for a Down Payment

Source Per Person Per Couple
FHSA $40,000+ (with growth) $80,000+
HBP (RRSP) $60,000 $120,000
Total $100,000+ $200,000+

A couple can potentially use over $200,000 in tax-advantaged savings for a down payment.

Home Buyers’ Tax Credit (HBTC)

Feature Detail
Credit amount $10,000 (15% = $1,500 tax savings)
Eligibility Purchased a qualifying home
How to claim Line 31270 on tax return

GST/HST New Housing Rebate

If you buy a new home or substantially renovate:

Home Price Federal GST Rebate (Max)
Under $350,000 Up to $6,300 (36% of GST)
$350,000–$450,000 Reduced on sliding scale
Over $450,000 $0 federal rebate

Provincial rebates may apply separately in Ontario, Nova Scotia, etc.

Provincial First-Time Buyer Programs

Ontario

Program Benefit
Land Transfer Tax Refund Up to $4,000
Toronto LTT Refund (additional) Up to $4,475
Total potential savings $8,475

Use our Ontario land transfer tax calculator for precise figures.

British Columbia

Program Benefit
First Time Home Buyers’ Program (PTT exemption) Save up to $8,000 on homes up to $500K
Partial exemption Homes $500K–$525K
BC Home Owner Mortgage & Equity Partnership Interest-free loan up to 5% of purchase price (select programs)

Use our BC land transfer tax calculator.

Alberta

Program Benefit
No provincial land transfer tax Saves thousands compared to other provinces
Alberta mortgage affordability Among the best in Canada

See our Alberta mortgage affordability calculator.

Quebec

Program Benefit
No land transfer tax exemption for first-time buyers Quebec “Welcome Tax” applies to all buyers
Municipal grant programs Some cities offer grants

Manitoba

Program Benefit
First-Time Home Buyer Tax Credit $10,000 credit (10.8% = $1,080)

Saskatchewan

Program Benefit
First-Time Homebuyers’ Tax Credit $10,000 credit (10.5% = $1,050)

Nova Scotia

Program Benefit
No provincial first-time buyer exemption Full deed transfer tax applies
Halifax First-Time Buyer Programs Municipal programs may apply

New Brunswick

Program Benefit
Land Transfer Tax 1% (relatively low)
No specific first-time buyer exemption

Prince Edward Island

Program Benefit
First-Time Home Buyer Program Up to $2,000 property transfer tax rebate

Down Payment Requirements in Canada

Home Price Minimum Down Payment
Under $500,000 5%
$500,001–$999,999 5% on first $500K + 10% on remainder
$1,000,000+ 20%

Examples

Home Price Minimum Down Payment CMHC Insurance Required?
$350,000 $17,500 (5%) Yes
$500,000 $25,000 (5%) Yes
$700,000 $45,000 (5%+10%) Yes
$999,000 $74,900 Yes
$1,000,000 $200,000 (20%) No

For detailed calculations, see our down payment calculator and mortgage insurance calculator.

Summary: Potential Savings for First-Time Buyers

Program Maximum Benefit
FHSA (tax savings on $40K contribution, ~30% bracket) ~$12,000
HBP (RRSP tax deferral) Tax-free access to $60K
Home Buyers’ Tax Credit $1,500
Ontario LTT Refund $4,000
Toronto LTT Refund $4,475
BC PTT First-Time Exemption $8,000
GST/HST New Housing Rebate Up to $6,300

A first-time buyer in Toronto purchasing a new home could save $20,000+ across these programs.

Key Takeaways

  1. The FHSA is the best new tool — tax-deductible contributions with tax-free withdrawals, up to $40,000
  2. Combine FHSA + HBP for up to $100,000 per person in tax-advantaged down payment savings
  3. Provincial programs vary widely — Ontario and BC offer the most generous exemptions
  4. Minimum down payment is 5% for homes under $500K, but 20% avoids CMHC insurance
  5. Claim the Home Buyers’ Tax Credit ($1,500) — many first-time buyers miss this on their tax return

Sources

WealthVieu
Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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