Here is an overview of the 9 programs, assistance options, grants, and tax credits available to first-time home buyers:
1- FHSA
Created in 2023 by the federal government, the FHSA is a tax-free savings account that allows first-time home buyers to contribute up to $8,000 per year, up to a lifetime limit of $40,000. This account has a 15-year lifespan from the time it is opened.
Benefits of the First Home Savings Account (FHSA)
- Your contributions qualify for a tax deduction on your income tax and benefit return.
- Your savings grow tax-free.
- Withdrawals for the purchase of your first home are not taxable.
- If you want to use the funds for something other than buying a property, you can transfer them to an RRSP, RRIF, or TFSA without affecting your contribution limit or incurring penalties.
- Unused contribution room in a given year can be carried forward to the following year, up to a maximum of $8,000.
Who qualifies for the FHSA?
- You need to be a Canadian resident.
- You must be of legal age and under 71 years old.
- You must not have owned or co-owned a principal residence during the current calendar year before opening the account or at any time in the preceding four calendar years;
- You are ineligible if you or your spouse/common-law partner have occupied, as a principal residence, a dwelling owned by either of you during the current or four previous calendar years.
- You must not have previously used an FHSA to purchase a property.
2- HBP (Home Buyers' Plan)
The objective of this program is to allow young adults to withdraw up to $60,000 from their Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home. The best part is that this money is tax-free. This down payment contribution can play a major role in Canadians' buying power.
The amount withdrawn from your RRSP for a down payment must be repaid within 15 years following the withdrawal. Furthermore, if you have previously participated in the program, you may access it again provided your HBP balance is repaid as of January 1st of the year of the new withdrawal.
Who is eligible for the Home Buyers' Plan?
- First-time home buyer;
- To have a written agreement to purchase or construct a qualifying home for yourself or a related person with a disability;
- To be a resident of Canada at the time of withdrawing funds from your RRSP under the HBP and to maintain that residency until the qualifying home is purchased or constructed;
- To have the intention of occupying the qualifying property as their primary residence within twelve months of purchase or construction.
3- Welcome tax refund for first-time buyers
In the spring of 2026, the Quebec government announced that it will reimburse the welcome tax to first-time buyers in the form of a tax credit.
All the details:
- A full $5,000 reimbursement on land transfer duties. Beyond this amount, you will receive an additional 25% credit on the remaining balance, up to a maximum of $875.
- Buyers who have not owned a home in the last 4 years. For couples, both individuals must meet this criterion.
- This measure applies to homes purchased as of January 1, 2026.
Who qualifies for this program?
You (or your spouse) are purchasing your first primary residence and have not owned an inhabited home during the current year or the previous four calendar years.
4- Home Buyers' Tax Credit
When you buy your first property, you are eligible for a maximum tax credit of $1,400. If someone other than you is eligible for this credit for the same qualifying home, you can split it.
Who qualifies for this provincial tax credit?
- You (or your spouse) are purchasing your first primary residence and have not owned an inhabited home during the current year or the previous four calendar years.
- You purchase a principal residence for a relative with a disability in order to offer them housing that is more accessible, suited to their mobility needs, or better situated for their care.
5- Home buyers' amount
When making your first home purchase, you are eligible for a non-refundable tax credit designed to cover a portion of your closing costs.
This credit effectively reduces the amount of federal income tax you owe. Specifically, the amount is calculated by multiplying the lowest federal income tax bracket rate by $10,000. You can claim up to $10,000 on your tax return to receive a tax credit of up to $1,500.
Who is eligible for this federal tax credit?
- You (or your spouse or common-law partner) acquired a qualifying home.
- You did not live in another home in Canada or abroad that you (or your spouse or common-law partner) owned during the year of acquisition or in any of the four preceding years (first-time home buyer), unless you are a person with a disability.
- You or the related person with a disability must intend to occupy the home as a principal residence no later than one year after acquisition.
6- First-time home buyers' GST rebate on new or substantially renovated homes
If you are a buyer of a new or substantially renovated first home, you may be eligible for a full GST rebate.
Who qualifies for this program?
- You are considered a first-time home buyer.
- You are the first occupant of the home and use it as your primary residence.
- You or your spouse or common-law partner have never claimed the GST rebate for the purchase of a first home.
7- Novoclimat
Novoclimat offers financial assistance to anyone looking to build an energy-efficient new home. Once the property meets Novoclimat standards, a $4,000 financial incentive is granted.
Other benefits:
- The homeowner will receive additional financial assistance if an eligible heat pump is installed.
- Une remise de 15 % sur la prime d’assurance à l’achat d’une habitation Novoclimat est offerte par la Société canadienne d’hypothèques et de logement (SCHL).
- Some financial institutions offer mortgage rate discounts for the acquisition of an energy-efficient home.
8- CMHC Eco Plus
If you purchase a newly built energy-efficient home with a CMHC-insured mortgage, you could receive a 25% refund on your mortgage loan insurance premium.
Who qualifies for this program?
- Your mortgage is insured with CMHC.
- Your home is a newly built, energy-efficient property.
- You have an eligible energy efficiency certificate or meet energy performance requirements.
- Your home achieves at least 20% lower energy use than a typical new home, based on Natural Resources Canada’s EnerGuide Rating System.
9- Municipal programs
To encourage buyers to settle in their communities, several municipalities offer grants, down payment assistance programs, or tax exemptions to help make home financing easier.
Because these programs evolve over time and alongside current legislation, reach out to your Proprio Direct real estate broker to discover all the grants, rebates, credits, and financial assistance options available to you.
Wondering which programs you're eligible for? Every situation is different. A Proprio Direct real estate broker can help you identify the financial aid, grants, and tax credits you may be eligible for.
