First Time Home Buyers Incentives and Programs

Home Buyers’ Plan (HBP)
Tax-Free First Home Savings Account (FHSA).
Tax credits.
Grants and incentives offered by provinces and cities.

First Time Home Buyers Incentives and programs

Home Buyers’ Plan (HBP) RRSP

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a specified disabled person.

When applying to make a withdrawal under the Home Buyers’ Plan (HBP), make sure you are elegible by visiting the goverment website here. How to participate in the Home Buyers’ Plan

You are permitted to make multiple withdrawals from your RRSPs under the HBP; however, you are only permitted to make those withdrawals in the same calendar year as your first withdrawal, and in January of the following calendar year.

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Notable Updates to the RRSP Home Buyers’ Plan

On April 11, 2024, the federal government unveiled a significant enhancement to the RRSP Home Buyers’ Plan (HBP), raising the allowable withdrawal amount to $60,000, up from $35,000. This change took effect on April 16, 2024, marking only the second increase since the program’s inception in 1992; the previous adjustment was in 2019, when the limit rose from $25,000.

In addition, a new provision has extended the repayment grace period for eligible homebuyers who withdrew funds under the HBP between January 1, 2022, and December 31, 2025. These individuals now have up to five years, as opposed to the previous two, before they must commence repayment instalments.

Tax-Free First Home Savings Account (FHSA)

What is a FHSA?

The First Home Savings Account (FHSA) is a tax-advantaged Canadian savings account designed specifically for first-time homebuyers. It allows individuals to save up to $40,000 tax-free towards their first home purchase. Contributions to the FHSA are tax-deductible, similar to an RRSP, while withdrawals for qualifying home purchases are tax-free, much like a TFSA. This unique blend of benefits makes the FHSA an essential tool for Canadians looking to achieve homeownership faster by maximizing both savings and tax advantages.

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Tax Credits

For first-time homebuyers in Canada, the government offers a valuable tax credit designed to ease the financial burden of purchasing a home. The First-Time Home Buyers’ Tax Credit (HBTC) allows eligible buyers to claim a $10,000 non-refundable tax credit. This credit can result in a rebate of up to $1,500 on your income tax, offering immediate savings after purchasing your first home.

How to qualify for “The First-Time Home Buyers’ Tax Credit”

To qualify, you or your spouse must not have owned a home in the last four years. The property must be intended as your principal residence within one year of purchase.

Utilizing the HBTC can make the transition to homeownership more manageable, giving you more room to manage closing costs, renovations, or even your first few mortgage payments. Call us for more details and updates regarding tax credits for first time home buyers.