First-Time Home Buyer Incentives in Canada (2025 Edition)
Becoming a homeowner for the first time can feel overwhelming—but Canada offers several programs designed to make the process more affordable and accessible. Below is a breakdown of the top programs and tools available in 2025.
First-Time Home Buyer Calculator
Use this tool to estimate the rebates and tax savings you qualify for as a first-time homebuyer.
Inputs:
Home purchase price
Household income
Down payment
Property type (resale/new)
Province
Whether the property is in the Toronto CMA (includes Mississauga, Brampton, Vaughan, Markham, etc.)
Land Transfer Tax Rebates (by Province)
| Province | Maximum Rebate | Eligibility Notes |
|---|---|---|
| Ontario | $4,000 | First-time buyers only |
| Toronto (City) | Additional $4,475 | Stacked with Ontario rebate |
| British Columbia | $8,000 | Applies to homes under $525,000 |
| Quebec | $5,000–$15,000 | Varies by city and purchase price |
| Prince Edward Island | 100% refund | For properties under $200,000 |
Home Buyers’ Plan (HBP)
Withdraw up to $60,000 tax-free from your RRSP to use as a down payment. Key rules:
Must repay over 15 years
Repayments start 5 years after withdrawal
First Home Savings Account (FHSA)
A powerful new tool introduced in 2023:
Contribute up to $8,000 annually, to a max of $40,000
Tax-deductible contributions
Tax-free withdrawals for your first home purchase
Municipal DownPayment Assistance Programs (DPAP)
Some cities and municipalities offer extra support. These vary widely by location. Contact your local housing authority or mortgage advisor for city-specific programs.
Program Update
The First-Time Home Buyer Incentive (Shared Equity Program) was discontinued on March 21, 2024 due to low demand and limited effectiveness.
Summary: What You Can Save
| Program | Max Benefit |
|---|---|
| Land Transfer Tax Rebates | $4,000–$12,475 |
| RRSP Home Buyers’ Plan | $60,000 (withdrawal) |
| First Home Savings Account | $40,000 + returns |
| Municipal Down Payment Programs | Varies |