First-Time Home Buyer Programs in Canada (2026 Guide)

Canada has more programs for first-time home buyers than most Canadians realize. Used together, the federal + provincial stack is worth $100,000+ for a typical first-home purchase. This guide covers every active 2026 program — what you qualify for, how the programs interact, and which ones to prioritize.

Who counts as a “first-time” home buyer in Canada

The CRA‘s definition: you (and your spouse, if applicable) haven’t owned a qualifying home that you lived in as your principal residence at any time in the current calendar year OR the previous 4 calendar years. So if you owned a home in 2019 but sold it in 2020 and rented since, by 2026 you’re back to first-time buyer status.

Note: provincial programs sometimes have slightly different definitions. BC and Ontario use the CRA definition; PEI requires you’ve never owned anywhere globally. Always confirm against the specific program’s rules.

1. FHSA (First Home Savings Account) — the best program of all

• What it is: A tax-advantaged account that combines an RRSP-style refund AND a TFSA-style tax-free withdrawal — for a first home only.
• Annual limit: $8,000
• Lifetime limit: $40,000
• Tax refund on contribution: Yes (deducts from taxable income)
• Tax on qualifying withdrawal: Zero
• Repayment required: None
• Backup plan if you don’t buy: Roll into RRSP tax-free, no RRSP room used

This is the single best account the federal government has ever offered first-time buyers. Open one the moment you become a Canadian resident over 18, even if you don’t have $8K to contribute yet — you start banking annual room. Full FHSA guide here.

2. RRSP Home Buyers’ Plan (HBP) — withdraw $60K from RRSP tax-free

• What it is: Lets first-time buyers withdraw up to $60,000 from their RRSP tax-free for a home down payment.
• Limit (raised 2024): $60,000 per person (was $35,000 prior to April 2024)
• Repayment required: Yes — over 15 years, starting the second year after withdrawal. Roughly $4,000/year minimum repayment. Miss a year and that amount counts as taxable income.
• Couple stack: Both spouses can use the HBP separately if both qualify — that’s $120,000 combined for one home.

The HBP and FHSA are stackable. Couple max for one home: $80K FHSA + $120K HBP = $200K of buying power that’s either tax-free or tax-deferred. For most Canadian first homes, that’s the entire down payment.

3. First-Time Home Buyer Tax Credit (federal $1,500)

Claim a non-refundable federal tax credit of up to $1,500 on your tax return for the year you buy your first home. Form: Line 31270 of your T1. Combined federal + provincial value is roughly $1,500 in tax saved. Automatic for anyone who qualifies — just claim it.

4. GST/HST New Housing Rebate

If you buy a new construction home (or buy a substantially renovated one), you can claim back a portion of the GST/HST paid on the purchase. Federal rebate maxes out at 36% of the GST on homes under $350K (smaller % for homes $350K-$450K, zero above $450K). Several provinces add their own provincial sales tax rebate on top.

Doesn’t apply to resale homes. Builders usually handle the paperwork on your behalf as part of closing.

5. Provincial land transfer tax rebates

• Ontario: First-time buyer rebate of up to $4,000 on provincial land transfer tax. Plus an additional Toronto municipal rebate of $4,475 for purchases in the city of Toronto.
• British Columbia: Full exemption on the Property Transfer Tax for first-time buyers on homes up to $500,000 (partial up to $525K). Worth roughly $8,000 on a $500K purchase.
• Prince Edward Island: Full rebate of the Real Property Transfer Tax for eligible first-time buyers. Roughly 1% of purchase price.
• Quebec: No provincial rebate, but the City of Montreal offers a refund of the “Welcome Tax” up to $5,000 for first-time buyers in certain price brackets.
• Other provinces: Alberta, Saskatchewan, Manitoba, Atlantic provinces — no significant first-time buyer land transfer tax programs as of 2026.

What’s been discontinued (don’t bank on these)

• First-Time Home Buyer Incentive (FTHBI): The CMHC shared-equity program was closed to new applications March 21, 2024. If you didn’t apply before then, it’s no longer available.

The recommended order to use programs

1. Open an FHSA the moment you’re eligible. Contribute the max ($8K/year, $40K lifetime). No repayment to worry about.
2. Then fund your RRSP HBP room as your income rises. RRSP contributions also reduce your tax bill now.
3. Save the rest in your TFSA (tax-free growth, can be withdrawn for any reason).
4. At purchase: Withdraw FHSA first, then HBP, then TFSA. Claim the $1,500 federal tax credit on the year’s return. If new build, claim GST/HST rebate. Claim provincial land transfer rebate.

Related guides

• The Complete Guide to the FHSA in Canada
• The Complete Guide to the RRSP in Canada
• TFSA vs FHSA: Which First-Time-Buyer Account First?
• Mortgage Affordability Calculator (Canada 2026)