First-Time Home Buyer Benefits in Canada 2025
Save Up to Tens of Thousands on Your Home Purchase
Discover all Canadian government benefits and incentives for first-time home buyers in 2025, including RRSP HBP, tax credits, land transfer tax rebates, and shared equity mortgages. Our complete guide explains eligibility, amounts, and how to apply.
2025 First-Time Home Buyer Benefits Overview
Canadian federal and provincial governments offer various programs to help first-time home buyers reduce purchase costs and monthly mortgage payments.
Important Notice
A first-time home buyer is typically defined as someone who has not owned and lived in their own home in the past four years. Both spouses must qualify as first-time buyers. Specific definitions may vary slightly between programs.
RRSP Home Buyers’ Plan (HBP)
The RRSP HBP is one of the most popular first-time home buyer programs, allowing tax-free withdrawals from your Registered Retirement Savings Plan for your first home purchase.
Basic Information
Up to $35,000Individuals can withdraw up to $35,000, couples up to $70,000 combined
- Tax-free withdrawal
- Can be used for down payment and closing costs
- 15-year repayment period
- Minimum annual repayment of 1/15
Eligibility
Qualification RequirementsMust meet specific eligibility criteria and timing requirements
- Must be a Canadian resident
- Must qualify as a first-time home buyer
- Funds must be in RRSP for at least 90 days
- Must buy or build a qualifying home within one year of withdrawal
Repayment Terms
15-Year PeriodWithdrawn funds must be repaid to your RRSP over time
- Repayment begins the second year after withdrawal
- Minimum annual repayment of 1/15 of total withdrawal
- Early or increased repayments allowed
- Unrepaid amounts become taxable income
First-Time Home Buyer Tax Credit (HBTC)
A federal tax credit specifically for first-time home buyers that directly reduces the amount of income tax you owe.
Tax Credit Amount
$10,000Eligible first-time home buyers can claim up to $10,000
- Credit worth 15% of purchase price
- Maximum credit of $1,500
- Directly reduces income tax payable
- Also available for people with disabilities
Eligibility Requirements
Conditions ApplyMust meet specific conditions to claim this tax credit
- You or your spouse bought a qualifying home
- Did not own a home in the year of purchase or previous four years
- People with disabilities exempt from four-year rule
- Must intend to occupy the home within one year
How to Claim
Simple ProcessClaim through your annual tax return
- Claim on your annual income tax return
- Complete Schedule 1 form
- Keep documentation of your home purchase
- Can claim for previous years if eligible
Land Transfer Tax Rebates
Canadian provinces offer various land transfer tax rebate programs to help first-time home buyers reduce transaction costs.
| Province | Maximum Rebate | Eligibility | Notes |
|---|---|---|---|
| Ontario | $4,000 | Worldwide first-time buyers, home price ≤ $368,000 | Toronto offers additional municipal land transfer tax rebate up to $4,475 |
| British Columbia | $8,000 | Canadian citizens or permanent residents, home price ≤ $500,000 | Additional exemptions in some remote areas |
| Quebec | $8,900 | First-time buyers, must occupy within 6 months | Rebate amount calculated on sliding scale based on price |
| Prince Edward Island | $2,000 | First-time buyers, home price ≤ $200,000 | Additional benefits for some new constructions |
Important Note
Land transfer tax rebate programs vary significantly by province and may change. Consult with a real estate lawyer or check current provincial government guidelines for the most accurate information.
First-Time Home Buyer Benefits Calculator
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Benefits Calculator
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Frequently Asked Questions
Answers to common questions about first-time home buyer benefits and incentives.
Major programs include: 1) RRSP Home Buyers’ Plan (HBP) up to $35,000 tax-free withdrawal 2) First-Time Home Buyer Tax Credit 3) Provincial land transfer tax rebates 4) First-Time Home Buyer Incentive shared equity mortgage 5) GST/HST new housing rebates.
You can withdraw up to $35,000 from your RRSP ($70,000 for couples) tax-free for a home purchase. The amount must be repaid within 15 years, with minimum annual payments of 1/15 of the total withdrawal. Any unpaid amounts become taxable income.
Ontario offers up to $4,000 (with an additional $4,475 in Toronto), BC up to $8,000, Quebec up to $8,900, while Alberta and Saskatchewan have no land transfer tax. Amounts vary based on home price and individual circumstances.
The government provides a shared equity loan: up to 10% for new construction, 5% for existing homes. No monthly payments are required; you repay after 25 years or when you sell the property, based on the property’s appreciated value. Income and home price limits apply.
Generally, you must not have owned and lived in your own home in the past four years. Both spouses must qualify. Divorced or separated individuals may regain first-time buyer status under certain circumstances.
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