First-Time Home Buyer Programs in Canada and Ontario: What's Actually Available

Canada and Ontario run several programs that help first-time buyers save for and pay less tax on a home purchase: a registered savings account, an RRSP withdrawal option, a tax credit, a new-construction rebate, and a provincial land transfer tax refund. Each has its own rules and administering body — confirm which combination fits your situation with a tax professional.

What Is the First Home Savings Account (FHSA)?

The First Home Savings Account is a registered account designed specifically for first-time buyers, combining features of an RRSP and a TFSA: contributions can reduce your taxable income the way an RRSP contribution does, and a qualifying withdrawal toward a first home — including any growth inside the account — comes out tax-free, the way a TFSA withdrawal does.

It’s a federal program administered through CRA and offered by banks, credit unions, and investment firms the way any registered account is. Opening one requires being a Canadian resident, an adult, and a first-time buyer under CRA’s definition. Because it’s relatively new, many buyers and even some circulating “first-time buyer program” lists still omit it entirely — confirm current contribution limits and rules directly on canada.ca, since they are set federally and can change.

What Is the Home Buyers’ Plan (HBP)?

The Home Buyers’ Plan lets an eligible first-time buyer withdraw funds from their own RRSP, tax-free at the time of withdrawal, to put toward buying or building a qualifying home. It is a loan from your own retirement savings to yourself, not a grant or a rebate — you’re required to repay it to your RRSP over time under a CRA-set schedule.

To participate, you generally need a written agreement to buy or build a qualifying home and must meet CRA’s first-time buyer test. The withdrawal has a maximum amount that CRA sets and periodically revises, so confirm the current limit — and the current repayment schedule — on canada.ca or with a tax professional rather than relying on a number from an older article.

What Is the Home Buyers’ Amount (the First-Time Home Buyers’ Tax Credit)?

The Home Buyers’ Amount, often called the First-Time Home Buyers’ Tax Credit, is a non-refundable federal tax credit claimed on your income tax return in the year you buy a qualifying home. It reduces the tax you owe; it is not a cash rebate and doesn’t create a refund on its own if you have no tax payable.

It’s available to first-time buyers (and to certain buyers with a disability, regardless of first-time status) and can be split between spouses or common-law partners on the same purchase, as long as the combined claim doesn’t exceed the annual maximum CRA sets. Confirm the current claim line and maximum amount on canada.ca when you file.

Is the First-Time Home Buyer Incentive Still Available?

No. The First-Time Home Buyer Incentive — a shared-equity program administered by CMHC that put a government stake into a buyer’s mortgage — has been discontinued and CMHC has stopped accepting new or resubmitted applications. It still appears in older articles, guides, and even some lender materials, so if you encounter it, treat it as historical rather than something to apply for.

Buyers who already have an active Incentive agreement from before it was wound down should direct questions about their existing agreement to CMHC directly rather than to a real estate professional, since it is a CMHC-administered financial product.

Is There GST/HST Relief on a New-Build Home?

Yes, and there are two layers to check. The general GST/HST new housing rebate is available to any qualifying buyer of a new or substantially renovated home, regardless of first-time buyer status, and recovers part of the tax paid. On top of that, a separate first-time home buyers’ GST/HST rebate can apply specifically to first-time buyers of a new or substantially renovated home, as a top-up to the general rebate.

Neither applies to a resale home in the ordinary course — they’re tied to new construction, substantial renovation, or comparable qualifying builds. Eligibility, the current rebate structure, and application deadlines are set by CRA and should be confirmed with your builder or a tax professional before you count on either.

Is There a Longer Amortization Option for First-Time Buyers of New Builds?

Yes. First-time buyers purchasing a newly built home may qualify for a longer maximum amortization period on an insured mortgage than the usual maximum available to other insured-mortgage borrowers. Spreading the mortgage over more time lowers the required regular payment, though it also means paying interest over a longer period.

This is a federal insured-mortgage policy administered through CMHC, not a real estate program, and it isn’t automatic. Whether it applies to a given purchase, and what the current terms actually mean for a buyer’s payments and qualification, are questions for CMHC and a mortgage professional — not something to plan around from a general guide.

Does the Ontario Land Transfer Tax Refund Apply Too?

Yes — Ontario runs its own land transfer tax refund for first-time purchasers, separate from all of the federal programs above and administered provincially rather than through CRA. Because it has its own eligibility test, claim process, and interaction with the Toronto municipal land transfer tax, CRESI covers it in full in a dedicated guide rather than duplicating it here; see CRESI’s Ontario land transfer tax guide for the details.

Can You Use These Programs Together?

These programs are independent of each other, and using one generally doesn’t disqualify a buyer from the others — a single purchase can involve the FHSA, the HBP, the Home Buyers’ Amount, and the Ontario refund at once, with the GST/HST rebates layered on for a qualifying new build. But independence doesn’t mean the choices are simple: how much to draw from an FHSA versus an RRSP, how a withdrawal interacts with your overall financing, and how to sequence contributions before a purchase are tax and financial-planning questions, not real estate questions.

Where Should a First-Time Buyer Start?

1. Confirm your first-time buyer status under CRA’s definition before assuming any program applies to you.
2. Check the current contribution limits, withdrawal maximums, and credit amounts directly on canada.ca — every figure in this space is federally set and revised periodically.
3. Talk to a tax professional about how the FHSA, the Home Buyers’ Plan, and the Home Buyers’ Amount fit together for your situation and your timeline.
4. Talk to a mortgage professional about how any of these funds factor into your financing and qualification.
5. If you’re buying new construction, ask the builder or your lawyer how the GST/HST rebates are being applied to your purchase price.
6. Ask your real estate lawyer about the Ontario land transfer tax refund as part of your closing.

This guide explains what each program is and does. It isn’t a recommendation to use any particular program, nor a statement that you qualify for one — that determination belongs to CRA, your tax professional, and your mortgage professional.