Canada First-Time Home Buyer Programs: Complete Guide

The FHSA (Compte d'épargne libre d'impôt pour l'achat d'une première propriété) launched in April 2023. It combines RRSP tax-deductibility with TFSA-style tax-free withdrawals for first-time home purchases. Key rules: (1) Contribute up to $8,000/year; lifetime maximum $40,000; unused annual room carries forward one year only; (2) Contributions are tax-deductible (like an RRSP) — reducing your taxable income in the year of contribution; (3) Qualifying withdrawals (for a first home purchase) are completely tax-free; (4) The account can hold cash, GICs, bonds, ETFs, and stocks; (5) Must be opened before age 71; must use within 15 years of first opening; (6) If you don't buy a home, you can transfer funds to your RRSP without tax or contribution room impact. See the full FHSA guide and the official CRA FHSA overview.

The Home Buyers' Plan allows first-time buyers to withdraw up to $35,000 from their RRSPs to buy or build a qualifying first home — tax-free. With a spouse or common-law partner (who also qualifies), both can withdraw $35,000 for a combined $70,000. Rules: (1) You must be a first-time home buyer (4-year rule); (2) You must have a written agreement to buy or build a qualifying home; (3) The property must be your principal residence within 1 year of purchase; (4) RRSP contributions made in the 90 days before withdrawal do not qualify (they must have been held in the RRSP for 90 days); (5) Repayment: you must repay the withdrawal over 15 years starting 2 years after withdrawal — minimum 1/15 per year. Missed repayments are included in your income for that year. The 2024 federal budget increased the HBP limit from $35,000 to $60,000 for withdrawals made after April 16, 2024 — verify current limits with the CRA Home Buyers' Plan page.

Yes — you can use both the FHSA and HBP for the same qualifying home purchase, making them stackable: Example: $40,000 FHSA + $60,000 HBP = $100,000 combined for a couple (each using HBP). Both withdrawals are tax-free for the FHSA; HBP must be repaid over 15 years. Strategy: maximize FHSA first (no repayment required) and use HBP as supplemental. Combine with the First-Time Home Buyers' Tax Credit for an additional $1,500 federal tax credit in the purchase year. Also check your province for additional land transfer tax rebates. See the Canada Home Buyers' Plan changes 2027 for recent limit updates, and the CRA FHSA guide.

The First-Time Home Buyer Incentive (FTHBI) was a shared equity program launched in 2019 where the federal government contributed 5–10% toward a qualifying home purchase in exchange for an equivalent equity stake. It was closed to new applications on March 21, 2024. The program was widely criticized for having a low maximum purchase price cap ($500,000) that made it irrelevant in high-cost markets like Toronto and Vancouver. Existing FTHBI participants still have active agreements; repayment is required within 25 years or upon sale, based on the property's fair market value at that time. The FHSA replaced the FTHBI as the government's primary first-time buyer tool — FHSA is superior in nearly every respect (tax deductible, no equity sharing, no repayment required). More details at CMHC FTHBI repayment portal.

The First-Time Home Buyers' Tax Credit (HBTC) is a non-refundable federal tax credit of $10,000 (increased from $5,000 in 2022). At the 15% federal tax rate, it provides up to $1,500 in tax savings. Eligibility: (1) You or your spouse/common-law partner must have acquired a qualifying home in the year; (2) You must be a first-time buyer (4-year rule); (3) You must intend to occupy the home as your principal residence within 1 year of acquisition. For persons with disabilities: the HBTC is also available even if you owned a previous home, if the new home is more accessible. Claim it on Schedule 1 of your T1 return (line 31270 — Home buyers' amount). If both partners qualify, you can split the $10,000 between your returns but the total claimed cannot exceed $10,000. Details from the CRA Home Buyers' Amount page.

Provincial programs in 2027 (verify current terms with each province): (1) Ontario: First-time home buyer land transfer tax rebate — up to $4,000 provincial LTT + $4,475 Toronto LTT rebate for qualifying purchases; (2) British Columbia: First Time Home Buyers' Program — full or partial property transfer tax exemption for homes under $835,000 (partial exemption up to $860,000); (3) Prince Edward Island: Land transfer tax rebate for first-time buyers; (4) Manitoba: Land transfer tax refund for first-time buyers on first $150,000; (5) New Brunswick, Nova Scotia, Newfoundland: No land transfer tax / deed transfer tax for first-time buyers in certain municipalities; Quebec: no specific provincial program but CMHC mortgage insurance is widely used. Many municipalities also offer down payment assistance programs — check CMHC's CMHC home buying resources. Also review Canada minimum down payment rules.