Question 1

What programs are available for first-time buyers in Canada?

Accepted Answer

Key federal programs include: the Home Buyers Plan (withdraw up to $60,000/person from RRSP tax-free), the First Home Savings Account (FHSA — save up to $40,000 tax-free toward a first home), and the First-Time Home Buyers Tax Credit ($1,500 federal tax saving). Provinces also offer their own LTT rebates.

Question 2

What is the First Home Savings Account (FHSA)?

Accepted Answer

The FHSA is a registered account allowing first-time buyers to contribute up to $8,000/year (lifetime limit $40,000) with tax-deductible contributions and tax-free withdrawals for a home purchase. Unused room carries forward one year. It combines RRSP and TFSA benefits.

Question 3

How much do I need for a down payment as a first-time buyer?

Accepted Answer

Minimum is 5% for homes under $500,000; 5% on first $500K plus 10% on the $500K-$1.5M portion; and 20% above $1.5M. As a first-time buyer, RRSP withdrawals (up to $60K/person via HBP) and FHSA savings can help reach these thresholds.

Question 4

Do first-time buyers get a land transfer tax rebate?

Accepted Answer

In several provinces, yes. Ontario rebates up to $4,000 (plus $4,475 in Toronto). BC offers full exemption under $500K and partial rebate up to $835K. Manitoba rebates up to $3,500. PEI rebates up to $2,000.

Question 5

What is the First-Time Home Buyers Tax Credit?

Accepted Answer

A $10,000 non-refundable federal tax credit for qualifying first-time buyers. At a 15% tax rate, this reduces your federal taxes by $1,500. You claim it on your income tax return for the year you bought the home.

First-Time Home Buyer Guide — Canada 2026

Federal and provincial programs

Frequently asked questions

Calculate your first home purchase