First-time buyers
Every program that helps you buy your first home
Canada and Ontario stack several programs for first-time buyers. Used together, they can be worth tens of thousands of dollars, but each has fine print.
The programs
First Home Savings Account (FHSA)
Save up to $8,000 per year ($40,000 lifetime) with contributions that are tax-deductible like an RRSP and withdrawals that are tax-free like a TFSA, the best of both, if you qualify as a first-time buyer.
RRSP Home Buyers' Plan
Withdraw up to $60,000 from your RRSP tax-free for a down payment, repayable over 15 years. Can be combined with the FHSA for the same purchase.
Land transfer tax rebates
Ontario refunds up to $4,000 of land transfer tax for eligible first-time buyers; Toronto adds a rebate of up to $4,475 on its municipal tax. On a first condo, that often wipes out the tax entirely.
30-year amortizations on new builds
First-time buyers with insured mortgages can stretch amortization to 30 years on new construction, lowering the monthly payment (while paying more interest over time).
What trips people up
Program definitions of "first-time buyer" differ, owning a home years ago, or a spouse who owned one, can disqualify you from some programs but not others. Withdrawal timing rules on the HBP and FHSA also matter: money usually has to sit in the account before it can be used.
Tell us your situation before you set up accounts or move money. Fifteen minutes of planning routinely saves buyers thousands.
Program rules, limits and tax rates change. This guide is general information, not financial or legal advice, confirm the current numbers with us or your advisor before acting.
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