Canada First Time Home Buyer Incentives & Grants
FHSA, HBP, Tax Credits, Rebates
Buying your first home is exciting but also expensive. The good news? Canada offers several programs, grants, and tax breaks to help first-time buyers. Whether you’re in Ontario or elsewhere in the country, this guide will walk you through everything you need to know from FHSA to the HBP, and even land transfer tax rebates.
If you’re planning to buy a house in Canada, here’s how to save thousands along the way.
🏦 1. First Home Savings Account (FHSA)
The First Home Savings Account (FHSA) is one of the newest tools to help you save. It combines the best of both RRSP and TFSA.
How it works:
- Contribute up to $8,000 per year, up to a lifetime limit of $40,000
- Contributions are tax deductible (like RRSP)
- Withdrawals for a first home are tax free (like TFSA)
You can open one with major banks like RBC FHSA or online platforms like Wealthsimple FHSA.
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🏡 2. Home Buyers’ Plan (HBP)
The HBP allows you to borrow from your RRSP to buy your first home.
Key features:
- Withdraw up to $60,000 from your RRSP
- No tax on the withdrawal if repaid within 15 years
- Must be a first time home buyer
You can use HBP together with the FHSA to maximize your down payment.
đź’° 3. First Time Home Buyer Tax Credit
You may qualify for a non-refundable $10,000 tax credit, which provides about $1,500 back at tax time.
Available if:
- You (and your spouse or partner) haven’t owned a home in the last 4 years
- You’re buying a qualifying home in Canada
📉 4. Land Transfer Tax Rebate (Ontario)
If you’re an Ontario first home buyer, you’re eligible for a land transfer tax rebate of up to $4,000 when buying a qualifying home.
This applies to resale and new homes, including credit houses for sale in Canada listed by reputable builders or real estate agents.
Pro Tip: Some cities like Toronto have an additional land transfer tax, and rebates may apply there too.
🧾 5. Other Rebates & Incentives
- GST/HST New Housing Rebate for newly built homes
- Energy-Efficient Home Grants (through CMHC or Enbridge in Ontario)
- First Time Buyer Incentive (Shared Equity Program) temporarily paused but worth monitoring
âś… Final Thought
If you’re looking to buy a house in Canada for the first time, don’t leave money on the table. Use your FHSA, explore the HBP, and claim every tax credit and rebate you qualify for. Whether you’re opening an RBC FHSA or Wealthsimple FHSA, the right planning now can save you thousands later.
Want help deciding the right strategy?
Talk to a licensed advisor to maximize your first home savings account and make use of all available government programs.
