First-Time Home Buyer in Canada —
The 2026 Federal + Provincial Guide

Four federal programs: (1) FHSA — save up to $40,000 lifetime ($8,000/year) with RRSP-style deduction and TFSA-style tax-free withdrawal for a qualifying first home; (2) HBP — withdraw up to $60,000 from your RRSP tax-free, repaid over 15 years; (3) HBTC — $1,500 non-refundable tax credit ($10,000 Home Buyers' Amount on line 31270 × 15%); (4) First-Time Buyer GST/HST Rebate — full rebate on new homes up to $1 million, partial up to $1.5 million. The FHSA and HBP can be combined for the same home purchase — combined per-person ceiling is $100,000.

For homes under $500,000: 5% of the purchase price. For homes between $500,000 and $1,500,000: 5% on the first $500,000 plus 10% on the portion above $500,000 (so a $1,000,000 home needs $25K + $50K = $75K minimum). For homes above $1,500,000: 20% (a conventional uninsured mortgage is required). The $1.5M insured-mortgage price cap took effect on December 15, 2024 — up from the previous $1 million cap.

The First Home Savings Account (launched April 2023) gives you a deduction for contributions like an RRSP AND tax-free withdrawals for a first home like a TFSA — with no repayment requirement. The Home Buyers' Plan lets you withdraw from your RRSP for a first home tax-free but you MUST repay over 15 years. Both can be used together. Use FHSA first (no repayment, deductible going in, tax-free out) then HBP (deductible long ago when you contributed to the RRSP, tax-free out, repayment).

Per person: $40,000 FHSA + $60,000 HBP = $100,000 of registered-account capacity. For a couple where both are first-time buyers, that's potentially $200,000 of tax-advantaged capital before touching TFSA. Add the $109,000 cumulative TFSA room (for someone 18+ since 2009) and the combined capacity per person rises to roughly $209,000 — though TFSA withdrawals weren't taxed going in, so you've used after-tax dollars.

Yes — for first-time home buyers and for any buyer purchasing a newly built home, 30-year amortizations are available on insured mortgages as of December 15, 2024. Previously the maximum was 25 years on insured mortgages. The longer amortization lowers monthly payments but raises total interest paid over the life of the mortgage. For uninsured mortgages (20%+ down payment), 30-year amortizations have been available for years.

Effective 2024, first-time buyers of a newly constructed or substantially renovated home in Canada receive a rebate of the federal portion of GST/HST. The rebate is full on qualifying homes valued up to $1 million and partial on homes valued between $1 million and $1.5 million. Resale homes are NOT eligible — this rebate is designed to incentivise new construction. The rebate is typically processed by the builder or claimed via Form GST190.

Ontario: rebate up to $4,000 of provincial LTT, effectively eliminating it on homes up to $368,000 and reducing it above. Buyers in Toronto get an additional $4,475 Municipal LTT rebate. British Columbia: full PTT exemption on homes up to $500,000, partial exemption phasing out by $835,000 (raised in 2024). Eligibility broadly aligns across provinces — Canadian citizen or permanent resident, hasn't owned a primary residence anywhere in the world, occupies the home as principal residence. Rebates are typically claimed by your real estate lawyer at closing.

Generally no. The major federal programs (FHSA, HBP, HBTC, 30-year amortization, $1.5M insured cap) have no scheduled sunset. The First-Time Buyer GST/HST Rebate is also ongoing. There's nothing in 2026 pushing a timing decision. The right time to buy is when (a) you have the down payment and closing costs covered without depleting your emergency fund, (b) your job and income are stable, (c) you plan to stay in the home for 5+ years (mortgage breakage fees and selling costs make shorter timelines expensive), and (d) the mortgage payment fits within your budget at the stress-tested rate, not just the contract rate.

The biggest surprises: (1) Land transfer tax (0.5–2% of price in most provinces; up to 4.5% combined in Toronto for higher-priced homes); (2) PST on CMHC insurance premium in ON, QC, SK, MB (8% of the premium, payable in cash at closing — not financed into the mortgage); (3) Real estate lawyer fees and disbursements ($1,200–$2,500); (4) Home inspection ($400–$700, optional but strongly recommended); (5) Title insurance ($200–$400); (6) Moving and utility setup ($1,000–$3,000). Budget 2–4% of purchase price for total closing costs.