Every First-Time Home Buyer Program in Canada (2026, With What Each Is Worth)
FHSA ($40,000 tax-free), the RRSP Home Buyers’ Plan ($60,000), the GST new-homes rebate, 30-year insured mortgages, and land transfer rebates across Canada.
Six programs matter, and they stack. Federal: the First Home Savings Account ($40,000 of tax-deductible, tax-free savings), the RRSP Home Buyers' Plan ($60,000 borrowed from your RRSP, repaid over 15 years), the Home Buyers' Amount tax credit ($10,000 credit, worth $1,500), the First-Time Home Buyers' GST Rebate (100% of GST on a new home up to $1 million), and 30-year insured amortizations. Provincial and municipal: land transfer tax relief in Ontario ($4,000), Toronto ($4,475), BC (up to $8,000) and PEI (full). A couple buying a $700,000 new build in Ottawa can combine roughly $45,000 of tax-sheltered savings, a $35,000 GST rebate and a $4,000 tax refund.
Figures come from the CostToClose guided buying flow.
The programs at a glance
| Program | What it gives | "First-time" definition | Cap |
|---|---|---|---|
| FHSA | Contributions deductible; withdrawals for a first home tax-free | No home owned in this or previous 4 calendar years | $8,000/yr, $40,000 lifetime, plus growth |
| RRSP Home Buyers' Plan | Withdraw from RRSP tax-free; repay over 15 years | Same 4-year test | $60,000 per person |
| Home Buyers' Amount | Non-refundable tax credit | Same 4-year test | $10,000 amount = $1,500 credit |
| First-Time Home Buyers' GST Rebate | 100% of GST on a new home | Same 4-year test; agreements from 20 March 2025 | 100% to $1M, phasing out to $1.5M; max $50,000 |
| 30-year insured amortization | Lower payment with under 20% down | First-time buyer (or any buyer of new construction) | +0.20% premium |
| Ontario LTT refund | Up to $4,000 | Never owned anywhere | — |
| Toronto MLTT rebate | Up to $4,475 | Never owned anywhere | — |
| BC PTT exemption | Up to $8,000 | Never owned a principal residence anywhere | Homes to $835,000 (phase-out to $860,000) |
| PEI transfer tax exemption | Full | Never owned anywhere; PEI residency test | — |
Sources: CRA; Department of Finance Canada; CMHC; Ontario Ministry of Finance; City of Toronto; Government of BC; Government of PEI. Checked 14 September 2026.
The two definitions matter. Federal programs forgive ownership more than four years ago; land transfer rebates never do.
The federal programs in more detail
FHSA
Open at 18, contribute up to $8,000 a year (unused room carries forward one year, so $16,000 max in a year), deduct contributions like an RRSP, withdraw tax-free for a qualifying home. Account must close within 15 years of opening or at 71. Both spouses can have one. See FHSA vs RRSP HBP.
Home Buyers' Plan
Withdraw up to $60,000 from your RRSP (limit raised from $35,000 in April 2024). Funds must have been in the RRSP 90 days. Repayment starts the second year after withdrawal, the fifth year for withdrawals made 2022 to 2028, at 1/15 a year. See HBP repayment explained.
GST rebate
For new homes (or substantially renovated ones) bought from a builder under an agreement signed 20 March 2025 or later, a first-time buyer recovers all of the 5% GST up to $1 million, phasing out linearly to zero at $1.5 million. It sits alongside the older federal new-housing rebate (max $6,300), which remains for non-first-time buyers. Ontario's matching enhancement is now law: an 8% provincial rebate (up to $80,000) plus a 5% top-up (up to $50,000) for agreements signed April 2026 to March 2027, up to $130,000 total, full relief up to $1.5 million tapering to $24,000 at $1.85 million.
30-year amortization
Since August 2024 for newly built homes, extended December 2024 to all first-time buyers including resales, when the insured price cap also rose from $1 million to $1.5 million, insured mortgages can run 30 years, with a 0.20% premium surcharge. Lowers the payment about 9% and the income needed to qualify by a similar share.
Worked example from the calculator
Couple, both first-time buyers, $700,000 new-build townhouse in Ottawa, 10% down, 30-year amortization:
| Item | Amount |
|---|---|
| Down payment funded from two FHSAs ($40,000 + $5,000 growth) | $45,000 |
| Remaining down payment from HBP withdrawal | $25,000 (repaid $1,667/yr from year 2) |
| GST on the new home (5%) | $35,000 |
| First-Time Home Buyers' GST Rebate | −$35,000 |
| Ontario land transfer tax | $10,475 |
| Ontario first-time buyer refund | −$4,000 |
| Home Buyers' Amount, next tax return | −$1,500 |
| CMHC premium at 30 years (3.30% of $630,000) | $20,790, added to mortgage |
| Ontario PST on premium | $1,663 cash |
| Monthly payment at 4.49%, 30 years | $3,278 (vs $3,591 at 25 years) |
The programs are worth about $40,500 in cash terms on this purchase, before counting the FHSA deductions on the way in. Reproduce this.
What changes the number
- Resale instead of new removes the GST rebate (the largest item) and the 30-year option unless you are a first-time buyer.
- Price over $1 million starts the GST rebate phase-out; over $1.5 million it is gone.
- Owning before, even abroad, removes the land transfer rebates but not the federal programs if it was more than four years ago.
- One spouse who owned can block the household from Ontario's refund, while the other spouse can still use their own FHSA and HBP.
Frequently asked questions
What programs are available to first-time home buyers in Canada in 2026?
The FHSA, the RRSP Home Buyers' Plan ($60,000), the Home Buyers' Amount tax credit, the First-Time Home Buyers' GST Rebate on new homes, 30-year insured amortizations, and land transfer tax relief in Ontario, Toronto, BC and PEI.
Can I use the FHSA and the Home Buyers' Plan together?
Yes, for the same purchase. Up to $40,000 plus growth from the FHSA and $60,000 from the HBP, per person.
What is the new first-time buyer GST rebate?
A full rebate of the 5% GST on a newly built home priced up to $1 million, phasing out to $1.5 million, for first-time buyers with purchase agreements dated 20 March 2025 or later. Maximum $50,000.
Who counts as a first-time buyer?
For federal programs, someone who has not lived in a home they or their spouse owned in the current or previous four calendar years. For land transfer rebates, someone who has never owned a home anywhere.
Is the First-Time Home Buyer Incentive still available?
No. The shared-equity incentive was discontinued in March 2024.
Sources
- Canada Revenue Agency, First Home Savings Account — checked 14 Sept 2026
- Canada Revenue Agency, Home Buyers' Plan ($60,000 limit; repayment grace) — checked 14 Sept 2026
- Canada Revenue Agency, Line 31270 Home buyers' amount — checked 14 Sept 2026
- Department of Finance Canada, First-Time Home Buyers' GST Rebate (Royal Assent 12 March 2026) — checked 14 Sept 2026
- Department of Finance Canada, 30-year insured amortizations (December 2024) — checked 14 Sept 2026
- Ontario Ministry of Finance; City of Toronto; Government of BC; Government of PEI — land transfer relief — checked 14 Sept 2026
This guide gives general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.