First-time home buyer programs in Canada (2026)
The main 2026 programs are the FHSA ($8,000 a year, $40,000 lifetime), the Home Buyers' Plan (up to $60,000 per person from an RRSP), the home buyers' amount (worth $1,400 for 2026), a GST rebate of up to $50,000 on new homes, 30-year insured amortization, and provincial land transfer tax relief. A couple can combine up to $200,000 from the FHSA and HBP.
Worked examples use 4.12%, the Bank of Canada's average effective rate on new insured 5-year-plus fixed mortgages (2026-08), and are recalculated whenever our rules or rates are updated.
The short answer
In 2026 Canada's main first-time buyer programs are the First Home Savings Account (FHSA), the RRSP Home Buyers' Plan (HBP), the home buyers' amount tax credit, the first-time home buyers' GST rebate on new homes, and the 30-year insured amortization. Ontario, Toronto, British Columbia and Prince Edward Island add land transfer tax relief. Several can be stacked on one purchase.
For a couple, the FHSA and HBP together can supply up to $200,000 toward a down payment (plus any investment growth in the FHSA), if both partners have the room and the savings.
First Home Savings Account (FHSA)
- Annual limit: $8,000 of contribution room a year.
- Lifetime limit: $40,000 per person.
- Carry-forward: unused room carries forward, but only up to $8,000, so the most you can put in in one year is $16,000.
- Tax treatment: CRA says contributions are generally deductible, and the account lets you save for a first home tax-free, up to the limits. A withdrawal has to meet CRA's conditions to be a qualifying, tax-free withdrawal.
Your room starts in the year you open your first FHSA, so opening one early starts the clock even if you can't fill it yet. Only the account holder can contribute to their own FHSA and claim the deduction, so partners each need their own account.
RRSP Home Buyers' Plan (HBP)
- Withdrawal limit: up to $60,000 per person from your RRSPs to buy or build a qualifying home.
- Repayment: you repay it to your RRSP over 15 years. For a first withdrawal made from January 1, 2026 to December 31, 2028, the 15-year repayment period starts in the fifth year after the year of the first withdrawal. A first withdrawal in 2026 means repayments start in 2031.
- With an FHSA: CRA confirms you can make a qualifying FHSA withdrawal and an HBP withdrawal for the same home, as long as you meet the conditions for each.
The HBP is a loan from your own retirement savings. Repaying $25,000 over 15 years is about $1,667 a year per person. CRA explains what happens if you miss a required repayment; plan for the repayments the same way you would for any other bill.
Example: a couple combining the FHSA and HBP
Two first-time buyers each contribute $8,000 a year to an FHSA for 3 years ($24,000 each, ignoring investment growth) and each withdraws $25,000 from an RRSP under the HBP in 2026. Together that is a $98,000 down payment. They earn $130,000 a year combined, pay $300 a month on other debts and are offered 4.12% in Ontario.
| 25-year amortization | 30-year amortization | |
|---|---|---|
| Maximum price | $655,000 | $691,400 |
| Down payment share | 15.0% | 14.2% |
| Insurance premium (added to loan) | $17,267 | $19,582 |
| Monthly payment at 4.12% | $3,058 | $2,957 |
| Estimated closing costs | $9,656 | $10,570 |
At the 25-year price, Ontario's first-time buyer refund lowers their land transfer tax from $9,575 to $5,575. From 2031, they will also owe about $3,333 a year in combined HBP repayments, which a lender's ratios do not include. Build those into the household budget.
Home buyers' amount (tax credit)
You can claim $10,000 on line 31270 of your return for the year you buy a qualifying home. It is a non-refundable credit worth the lowest federal tax rate times that amount: $1,400 for 2026. It only reduces federal tax you owe.
Generally you can't have lived in another home that you or your spouse or common-law partner owned in the year of purchase or the four years before. Partners who both qualify can split the claim, but the total can't exceed the yearly maximum. People eligible for the disability tax credit, or buying for a related person who is, may qualify without being first-time buyers if the home is more accessible or better suited to that person's needs.
First-time home buyers' GST rebate (new homes)
Enacted on March 12, 2026, this rebate refunds the GST (or the federal part of the HST) on a newly built home, up to $50,000. The full rebate applies to homes up to $1,000,000. Above that it shrinks in a straight line to zero at $1,500,000. It never exceeds the GST you actually paid.
| New-home price | Maximum rebate |
|---|---|
| $800,000 | $50,000 |
| $1,000,000 | $50,000 |
| $1,100,000 | $40,000 |
| $1,250,000 | $25,000 |
| $1,400,000 | $10,000 |
| $1,500,000 | $0 |
Key conditions, from CRA's guidance:
- You are at least 18, a Canadian citizen or permanent resident, and haven't lived in a home that you or your spouse owned in the current year or the four calendar years before.
- For a home bought from a builder, the agreement must be signed on or after March 20, 2025 and before 2031, and construction must be substantially complete before 2036.
- It applies to new homes, not resale homes.
- In Ontario, the provincial part of the HST is handled under Ontario's own rebate, not this one.
30-year insured amortization
Since December 15, 2024, first-time buyers (and buyers of new builds) with less than 20% down can take a 30-year insured mortgage instead of 25 years. It lowers the payment and raises what you qualify for, but adds 0.20 points to the insurance premium and more interest over time. In the couple's example it raises the maximum price from $655,000 to $691,400. See 30-year amortization.
Provincial land transfer tax relief
- Ontario: refund of up to $4,000; Toronto adds up to $4,475 on its municipal tax.
- British Columbia: exemption on homes up to $835,000 (saving up to $8,000), phased out by $860,000.
- Prince Edward Island: full exemption for qualifying first-time buyers.
Each has its own definition of a first-time buyer and its own occupancy rules. The closing costs guide has the details and the amounts in every province.
Who counts as a first-time buyer?
There is no single definition. Each program sets its own test, and you can qualify for one but not another:
| Program | Test, in short |
|---|---|
| Home buyers' amount, GST rebate | You (and your spouse or partner) haven't lived in a home either of you owned in the year of purchase or the four years before. |
| 30-year insured amortization (CMHC) | At least one borrower has never bought a home in Canada, hasn't lived in a home they or a spouse owned in the current or four previous calendar years, or is newly separated. A new build also qualifies. |
| FHSA and Home Buyers' Plan | CRA applies its own first-time buyer conditions, which you must meet at the time of each withdrawal. |
| Ontario land transfer tax refund | Stricter: you must never have owned a home anywhere in the world, be a citizen or permanent resident, and move in within nine months. |
| PEI transfer tax exemption | Every purchaser must never have held an interest in a principal residence, meet a PEI residency test and live in the home. |
The four-year rules mean someone who sold a home years ago, or a newly separated buyer, can sometimes count as a first-time buyer again for the federal programs, while still not qualifying for Ontario's refund. If a past home, a spouse's home or a home outside Canada is involved, check each program's wording before you count on it.
How to stack the programs
- Open an FHSA as early as you can so contribution room starts building, even if you can't fill it yet.
- Check how much is in your RRSP and decide whether an HBP withdrawal makes sense alongside the FHSA, including the repayments.
- Work out your down payment and what it supports with the down payment calculator and the affordability calculator.
- If you're buying a new build, confirm with the builder and CRA whether the GST rebate applies to your agreement.
- Ask your lawyer or notary to apply the provincial land transfer tax relief at closing, and claim the home buyers' amount on your return for the year you buy.
Rules for each program can change. Confirm the current conditions on CRA's and your province's pages before you rely on them.
How to combine first-time home buyer programs in Canada
- Open an FHSA early. Open a First Home Savings Account to start $8,000 a year of contribution room, up to $40,000.
- Consider the Home Buyers' Plan. Decide whether to withdraw up to $60,000 from your RRSP under the HBP, and plan for 15 years of repayments.
- Size the down payment. Add FHSA, HBP and other savings and check what price that down payment supports at the stress-test rate.
- Check new-home rebates. If buying a new build, confirm whether the first-time home buyers' GST rebate applies to your agreement.
- Claim relief at closing and tax time. Have your lawyer apply provincial land transfer tax relief, and claim the home buyers' amount on your return for the year you buy.
Frequently asked questions
What first-time home buyer programs are available in Canada in 2026?
The FHSA, the RRSP Home Buyers' Plan, the home buyers' amount tax credit, the first-time home buyers' GST rebate on new homes (up to $50,000), 30-year insured amortization, and land transfer tax relief in Ontario, Toronto, BC and PEI.
Can I use the FHSA and the Home Buyers' Plan together?
Yes. CRA confirms you can make a qualifying FHSA withdrawal and an HBP withdrawal for the same qualifying home, as long as you meet the conditions for each at the time of each withdrawal.
How much can a couple use from the FHSA and HBP?
Each person can contribute up to $40,000 to an FHSA and withdraw up to $60,000 from RRSPs under the HBP, so a couple with full room and savings could use up to $200,000, plus any FHSA investment growth.
When do I have to repay the Home Buyers' Plan?
Over 15 years. For a first withdrawal from 2026 to 2028, repayments start in the fifth year after the year of the first withdrawal, so a 2026 withdrawal is repaid starting in 2031.
Does the first-time buyer GST rebate apply to resale homes?
No. It applies to newly built homes: the full rebate up to $1,000,000, reducing to zero at $1,500,000, with a maximum of $50,000. For builder purchases the agreement must be signed on or after March 20, 2025.
How much is the first-time home buyers' tax credit worth?
You claim $10,000, which is worth $1,400 of federal tax for 2026 at the lowest federal rate. It is non-refundable, so it only reduces tax you owe.
Primary sources
- Canada Revenue Agency — First Home Savings Account (FHSA). Checked .
- Canada Revenue Agency — Contributing to your FHSA. Checked .
- Canada Revenue Agency — What is the Home Buyers' Plan. Checked .
- Canada Revenue Agency — Line 31270: Home buyers' amount. Checked .
- Canada Revenue Agency — Federal income tax rates for the current year. Checked .
- Canada Revenue Agency — GST/HST Memorandum 19-3-10: First-time home buyers' GST/HST rebate. Checked .
- Department of Finance Canada — Legislation to make life more affordable receives Royal Assent (Bill C-4) (effective March 12, 2026). Checked .
- CMHC — Home Start: 30-year amortization for first-time buyers and new builds. Checked .
- Department of Finance Canada — Mortgage reforms in force: $1.5M insured price cap, 30-year amortization (effective December 15, 2024). Checked .
- Government of Ontario — Land transfer tax refunds for first-time homebuyers. Checked .
- City of Toronto — MLTT rebate opportunities (first-time purchasers). Checked .
- Government of British Columbia — First time home buyers' exemption (effective April 1, 2024). Checked .
- Government of Prince Edward Island — Real Property Transfer Tax Act. Checked .