Buying your first home is one of the biggest financial milestones in life. Thankfully, Canada offers a variety of programs, rebates, and incentives to help first-time buyers ease the financial burden. Whether you are trying to boost your down payment, reduce your closing costs, or improve your mortgage affordability, these programs are designed to give you a head start. Here is a comprehensive overview of the key programs available in 2025.
1. First Home Savings Account (FHSA)
Introduced in 2023, the First Home Savings Account is one of the most powerful tools for new buyers. It allows Canadians aged 18 to 71 to contribute up to $8,000 annually and up to $40,000 in total.
- Contributions are tax-deductible
- Withdrawals for a qualifying home purchase are tax-free
- Funds can be combined with other programs like the Home Buyers’ Plan
2. Home Buyers’ Plan (HBP)
Through the Home Buyers’ Plan, you can withdraw up to $35,000 from your RRSPs (Registered Retirement Savings Plans) to buy your first home. Couples can withdraw up to $70,000 combined.
- Withdrawals are tax-free if repaid within 15 years
- You must be a first-time home buyer or not have owned a home in the last 4 years
- Funds must be used to buy or build a qualifying home
3. First-Time Home Buyer Incentive (FTHBI)
This federal shared equity program helps lower your mortgage payments by offering a 5% or 10% loan toward the home purchase price.
- Government shares in the home’s appreciation or depreciation
- Must be repaid within 25 years or when the home is sold
- Income and price limits apply
Note: In 2025, the program may be undergoing revisions. Check the latest updates through CMHC or your broker.
4. Land Transfer Tax Rebates
Both federal and provincial governments offer rebates on land transfer taxes for eligible first-time home buyers. These can significantly reduce your closing costs.
- Ontario: Up to $4,000 rebate
- British Columbia: Full exemption on homes under $500,000 (partial on homes under $525,000)
- Toronto: Additional municipal rebate up to $4,475
5. GST/HST New Housing Rebate
If you buy a new home or substantially renovate an existing one, you may be eligible for a partial rebate on the federal portion of the GST/HST.
- Available for homes valued at $450,000 or less (federal portion)
- Provincial portions may also offer rebates depending on your location
6. First-Time Buyer Tax Credit
Claim up to $10,000 through the First-Time Home Buyers’ Tax Credit (HBTC) when filing your income tax return. This can translate to a $1,500 non-refundable tax credit.
- Available to both individuals and couples
- You must not have lived in another home you owned in the past 4 years
How to Maximize These Programs
Many of these programs can be used together. For example, you can combine the FHSA with the HBP and apply for tax rebates and provincial grants. Planning ahead with a mortgage broker can help you leverage all available resources and maximize affordability.
Who Qualifies as a First-Time Buyer?
You are generally considered a first-time buyer in Canada if you have not owned a home in the past four years. However, eligibility can vary by program. Always check specific criteria to ensure you qualify.
How Ideal Mortgage Solutions Can Help
Our expert brokers stay up to date on all first-time buyer programs across Canada. We guide you through the entire process, from pre-approval and program eligibility to closing your mortgage with confidence. We also compare lenders to find rates and terms that align with your financial goals.
Final Thoughts
Buying your first home is a big step, but Canada’s programs and incentives make it more attainable. Understanding your options and planning early can put you on the path to ownership faster. The right advice can turn your first home dream into reality.
Start Your Journey Today
Contact Ideal Mortgage Solutions for a personalized consultation and program eligibility review. Let us help you make the most of your first home purchase in 2025.
