What Programs Are Available for First-Time Home Buyers in Canada?

November 5, 2025 | Posted by: Matt Broom-Hall

What Programs Are Available for First-Time Home Buyers in Canada?

Say Hello to Your First Home : Where Smart Programs Meet Strategic Planning.

Buying your first home in Canada doesn't have to feel like climbing Mount Everest in flip-flops. The federal government has rolled out a toolkit of programs specifically designed to make homeownership more accessible and affordable for first-time buyers. It's about strategy : knowing which programs exist, how they work together, and most importantly, how to maximize every dollar of benefit available to you.

I'm taking you behind the scenes of Canada's first-time home buyer programs, giving you the insider knowledge to navigate these opportunities like a pro. Whether you're just starting to save or ready to make an offer, understanding these programs could save you tens of thousands of dollars.

Home Buyers' Plan (HBP): Your RRSP Becomes Your Down Payment

The Home Buyers' Plan remains one of the most powerful tools in your first-time buyer arsenal. Here's what changed: as of April 2024, you can now withdraw up to $60,000 from your RRSP (up from $35,000) to put toward your home purchase.

The beauty of the HBP? No penalties, no immediate taxes : as long as you play by the rules. You have 15 years to repay this 'loan to yourself,' starting in the second year after withdrawal. Miss a repayment? That amount gets added to your taxable income for the year.

Pro tip: If you're married or in a common-law relationship, you can each withdraw $60,000 from your respective RRSPs, giving you access to $120,000 combined. That's a game-changing amount for your down payment strategy.

First Home Savings Account (FHSA): The Ultimate Tax-Advantaged Savings Vehicle

Introduced in 2022, the FHSA is arguably the most powerful savings tool for first-time buyers. Think of it as the best parts of an RRSP and TFSA rolled into one account specifically for your home purchase.

Here's how it works: you can contribute up to $8,000 per year for a maximum of 5 years, totaling $40,000 in contributions. Your contributions are tax-deductible (like an RRSP), your money grows tax-free, and when you withdraw for your first home purchase, that withdrawal is completely tax-free (like a TFSA).

This is transformative. You're essentially getting paid by the government to save for your first home through tax deductions, then keeping every penny of growth and withdrawals tax-free.

First-Time Home Buyer Tax Credit (HBTC): Every Dollar Counts

The HBTC provides a non-refundable tax credit to help offset some of the costs associated with buying your first home. Currently, the credit can provide up to $750 in tax relief, but here's where things get interesting: Budget 2022 proposed increasing this to $1,500 starting in 2023.

Watch this space carefully. The proposed increase hasn't been officially implemented yet, but when it comes through, it represents a 100% boost to this benefit. The credit can only be claimed in the year you purchase your home, so timing matters.

30-Year Amortization for First-Time Buyers: More Breathing Room

As of April 2024, qualified first-time buyers can access a 30-year amortization on insured mortgages for newly built homes. Extending the amortization from 25 to 30 years lowers your required monthly payment, which can make homeownership more accessible and help with qualification in tight affordability conditions. Trade-off: lower payments mean you’ll pay more interest over the life of the mortgage—so strategy matters.

Eligibility at a glance:

• First-time buyer as defined by the insurer
• Insured, high-ratio mortgages (typically less than 20% down; mortgage default insurance required)
• New purchases only, and generally limited to newly built homes (not refinances, switches, or most resales)
• Standard insurer/lender rules still apply, including the mortgage stress test and price/loan limits

What this means for you: If cash flow is the pinch point, a 30-year option can open doors. If your goal is fastest debt-free timeline, a 25-year may still win—unless you combine 30 years with prepayment strategies.

Talk to a mortgage pro. We’ll model 25-year vs. 30-year side by side, show you the payment, interest and qualification impacts, and build the plan that fits your budget today and your wealth goals tomorrow.

GST/HST New Housing Rebate: New Build Savings

If you're considering new construction, the GST/HST New Housing Rebate can put up to $6,300 back in your pocket. This rebate applies to new or substantially renovated homes, but there are specific rules to follow.

The key requirements: either you or an immediate family member must occupy the home as a primary residence, and the purchase price cannot exceed $450,000. For homes between $350,000 and $450,000, the rebate amount is reduced proportionally.

Important consideration: This rebate only applies to new builds, not resale homes. If you're deciding between new and resale properties, factor this potential savings into your comparison.

New GST Rebate for First-Time Buyers: New Construction Savings

Recent federal updates introduced additional GST relief for first-time buyers of newly constructed homes. Eligible buyers may receive a full 5% GST rebate on new homes up to $1,000,000, with a partial rebate phasing out between $1,000,000 and $1,500,000.

Eligibility snapshot:

• You’re a first-time home buyer (federal definition applies)
• It’s a brand-new home you’ll occupy as your primary residence (substantially renovated/newly built may qualify)
• Purchase price limits apply (full rebate to $1M; partial from $1M–$1.5M)
• Works alongside the existing GST/HST New Housing Rebate; different rules and timelines can apply

Why it matters: This can materially reduce upfront costs on new builds and improve overall affordability when combined with other first-time buyer programs.

Next step: Check with a mortgage professional. We’ll confirm eligibility, line up timelines with your builder, and show how this interacts with your qualification, payment, and closing costs.

CMHC Green Home Program: Sustainability Meets Savings

The CMHC Green Home Program offers a premium refund of up to 25% for eligible buyers purchasing energy-efficient homes. This isn't just good for the environment : it's good for your wallet both upfront and long-term through reduced utility costs.

The program also includes a free energy assessment, giving you valuable insight into your home's efficiency and potential areas for improvement. Both Sagen and Canada Guarantee offer similar green programs, so you'll have options regardless of which insurer backs your mortgage.

Sustainability is the future : and the government is literally paying you to be part of it.

The Program That's No Longer Available

Important update: The First-Time Home Buyer Incentive (FTHBI) was discontinued in March 2024. If you currently have a mortgage that used the FTHBI shared equity program, you'll need to contact the mortgage broker who originated your file for guidance on managing this existing arrangement.

This discontinuation removes one significant option from the toolkit, making it even more important to maximize the programs that remain available.

Stacking Strategies: How to Maximize Your Benefits

The real power comes from combining these programs strategically. Here's a typical optimization approach:

1. Start with the FHSA: Maximize your annual $8,000 contributions for the tax deduction and tax-free growth
2. Layer in the HBP: If you need additional funds, withdraw up to $60,000 from existing RRSP savings
3. Claim your tax credit: Don't forget the HBTC in the year you purchase
4. Consider new construction: If the GST/HST rebate and green program benefits align with your housing preferences

A couple following this strategy could access $40,000 from FHSA contributions, $120,000 from HBP withdrawals, up to $1,500 in tax credits, and potentially $6,300+ in rebates and green program benefits.

Want to see how you can snowball your down payment savings and get up to $15,200 in free money for your down payment? Check out the insider strategy here

Also, if you don't yet have a down payment plan, here's an insider hack that could fast track you to home ownership.

Why Professional Guidance Matters

These programs have specific eligibility requirements, timing considerations, and integration complexities that can make or break your savings potential. Strategy makes the difference between leaving money on the table and maximizing every available benefit.

Working with an experienced mortgage broker means having someone who understands how these programs work together, can time your applications and withdrawals optimally, and ensures you don't miss any opportunities or deadlines.

Your Next Steps

Let's get started. These programs represent thousands of dollars in potential savings and benefits, but only if you know how to access and combine them effectively. The landscape of first-time buyer programs continues to evolve, and staying current on the latest opportunities and requirements is crucial for maximizing your homeownership strategy.

At Hello Mortgage, we don't just help you get a mortgage : we help you build a comprehensive strategy that leverages every available program to make homeownership more affordable and accessible. From FHSA optimization to program stacking strategies, we'll ensure you're not leaving any money on the table.

Ready to turn these programs into your pathway to homeownership? Contact Hello Mortgage today and let's create a personalized strategy that puts every available benefit to work for your first home purchase. Your future self will thank you for making the smart move today.

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