First-Time Home Buyer Guide Canada 2026

Direct answer: Canada's main first-time buyer supports are the FHSA (up to $8,000/year, $40,000 lifetime, tax-free in and out for a qualifying home), the Home Buyers' Plan (up to $60,000 tax-free RRSP withdrawal, repaid over 15 years), and province-specific land transfer tax relief — Ontario refunds up to $4,000 (plus up to $4,475 more in Toronto), BC exempts property transfer tax on homes up to $500,000, and PEI exempts first-time buyers from its transfer tax regardless of price. A qualifying couple can combine up to $200,000 in tax-free FHSA + HBP capacity for one purchase.

Primary sources: CRA: First Home Savings Account (FHSA); CRA: Home Buyers' Plan; Ontario land transfer tax refund for first-time homebuyers; BC: First-time home buyers' exemption amounts.

Use the FHSA vs RRSP HBP Calculator to model your own combined down-payment capacity and tax refund before reading the rules below.

First Home Savings Account (FHSA)

Primary sources: CRA: First Home Savings Account (FHSA).

Rule	Amount
Annual contribution room	$8,000
Lifetime contribution limit	$40,000
Unused-room carryforward	Up to $8,000 added to the next year (so a maximum $16,000 can be contributed in one year with one year of unused room)
Contributions	Tax-deductible, like an RRSP
Qualifying withdrawal	Tax-free in and tax-free out, like a TFSA, when used for a qualifying first home

To open an FHSA you must be a Canadian resident aged 18 to 71 and a first-time home buyer: you must not have lived, at any time in the year the account is opened or the preceding four calendar years, in a home that you (or your spouse or common-law partner, if you have one at the time) owned as a principal residence. That spousal test only applies when opening the account — CRA guidance confirms that if you already hold an FHSA and later partner with someone who owns a home, your later withdrawal can still qualify.

Home Buyers' Plan (HBP)

Primary sources: CRA: Home Buyers' Plan.

Rule	Detail
Withdrawal limit	$60,000 per person, for withdrawals made after April 16, 2024 (previously $35,000)
Couple combined	Up to $120,000 if both partners individually qualify and withdraw from their own RRSPs
Repayment period	15 years
Repayment start	The second year after the year of withdrawal
Missed repayment	The minimum annual amount not repaid is added to your income for that tax year

Eligibility uses the same four-calendar-year first-time buyer test as the FHSA. You also need a written agreement to buy or build a qualifying home and must intend to occupy it as your principal residence within a year of buying or building.

Combining FHSA and HBP on one purchase

Unlike the HBP, FHSA withdrawals never need to be repaid — the money and its growth are simply tax-free. The two can be used together on the same home: $40,000 lifetime FHSA plus $60,000 HBP gives one buyer up to $100,000 in tax-advantaged funds, and $200,000 for a qualifying couple. The FHSA vs RRSP HBP Calculator works out your specific tax refund and repayment schedule.

Land transfer tax rebates for first-time buyers, by province

Primary sources: Ontario land transfer tax refund for first-time homebuyers; City of Toronto: MLTT rebate opportunities; BC: First-time home buyers' exemption amounts; PEI: Real Property Transfer Tax first-time home buyers exemption.

Province	First-time buyer relief	Notes
Ontario	Refund up to $4,000	Fully covers the provincial LTT on homes up to $368,000; must never have owned a home anywhere in the world and occupy within 9 months.
Toronto (city)	Additional municipal rebate up to $4,475	Stacks with the $4,000 provincial refund, for up to $8,475 combined in Toronto.
British Columbia	Full property transfer tax exemption up to $500,000 fair market value	Partial fixed exemption of $8,000 from $500,001–$835,000, phasing out to zero by $860,000 (effective April 1, 2024).
Prince Edward Island	Full exemption from Real Property Transfer Tax, regardless of purchase price	The former $200,000 price cap was removed in 2016; residency and occupancy declarations still apply.
Alberta, Saskatchewan, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Quebec, territories	No dedicated provincial first-time-buyer land transfer tax rebate identified	Check municipal programs separately; see the full land transfer tax by province guide for general rates.

GST/HST New Housing Rebate

Primary sources: CRA: GST/HST New Housing Rebate.

Buying newly built or substantially renovated housing is a separate track from first-time-buyer status: CRA's GST/HST New Housing Rebate can apply to any qualifying buyer of new construction, not just first-time buyers, subject to purchase-price thresholds and other conditions. Confirm current thresholds with your builder or lawyer and CRA's rebate guidance before closing.

Are you actually a "first-time" buyer? Common misunderstandings

• The lookback is four calendar years, not forever: someone who owned and sold a home more than four years ago can requalify for the FHSA and HBP.
• It's about principal-residence ownership, not any real estate: owning an investment property you never lived in does not, by itself, fail the FHSA/HBP test — the rule is about homes you owned and lived in as your principal residence.
• Provincial "first-time buyer" tests are separately defined: Ontario's refund requires you've never owned a home anywhere in the world; PEI requires specific residency or tax-filing ties to the province. Meeting the federal FHSA/HBP test does not automatically mean you qualify for a provincial rebate, or vice versa.
• FHSA withdrawals are not repaid like HBP withdrawals — treating them the same way in your budget will overstate what you owe later.

What to do, in order

1. Check whether you meet the four-year first-time buyer test federally, and your target province's own test for its rebate.
2. Open an FHSA as early as possible, even with a small deposit — contribution room starts accumulating from the year you open it.
3. Model your combined FHSA + HBP capacity and expected tax refund with the FHSA vs RRSP HBP Calculator.
4. Before your purchase agreement closes, confirm your province's land transfer tax rebate paperwork — these are typically claimed at registration, not after closing.
5. If buying new construction, ask your builder or lawyer about GST/HST New Housing Rebate eligibility before you sign.
6. Budget total closing costs, including any land transfer tax that isn't fully rebated, with the Mortgage Calculator.

Common mistakes

• Assuming FHSA withdrawals must be repaid: only HBP withdrawals carry a 15-year repayment obligation.
• Missing the land transfer tax rebate paperwork at closing: most provincial rebates are applied for at registration, not claimed later like a tax credit.
• Assuming every province has a first-time-buyer land transfer rebate: most provinces have no dedicated program.
• Confusing the FHSA account-opening spousal rule with the withdrawal spousal rule: they are not the same test.

Methodology and limitations

Verified August 8, 2026 against CRA First Home Savings Account and Home Buyers' Plan guidance, Ontario and City of Toronto land transfer tax refund pages, BC's current property transfer tax exemption amounts, and PEI's Real Property Transfer Tax first-time home buyers exemption page. Program parameters, income tax treatment and provincial rebate rules can change; this page does not replace CRA's own account tools, a mortgage advisor, or a real estate lawyer/notary for confirming your personal eligibility.

Sources: CRA First Home Savings Account (FHSA); CRA Home Buyers' Plan; CRA GST/HST New Housing Rebate; Ontario land transfer tax refund for first-time homebuyers; City of Toronto MLTT rebate opportunities; BC first-time home buyers' exemption amounts; PEI Real Property Transfer Tax first-time home buyers exemption.

Related reading: land transfer tax by province, CMHC mortgage insurance guide, and rent vs buy in Canada.