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Buying your first home in Canada is one of the most exciting and challenging steps you will ever take. But with prices still out of reach for many first-time buyers, every dollar counts.
The good news is there are support programs, including rebates, for first time buyers across Canada that can make the path to homeownership easier. These programs can save you thousands of dollars when you buy your first home.
We have done the research for you and put together this complete cheat sheet. These are the top programs you can take advantage of today.
Save for Your First Home Faster
1. First Home Savings Account (FHSA)
The FHSA is one of the best tools for first-time buyers. It allows you to save up to $40,000 for your first home completely tax-free. You can contribute $8,000 per year and deduct that amount from your taxable income. When you are ready to buy, you can withdraw the money plus any investment growth without paying any tax.
Why it matters: A couple can save up to $80,000 tax-free which can give your down payment a serious boost.
Learn more: Canada Revenue Agency – First Home Savings Account
2. Home Buyers Plan (HBP)
If you have savings in your Registered Retirement Savings Plan (RRSP), you can use the Home Buyers Plan to withdraw up to $60,000 tax-free for your down payment. You then have 15 years to pay it back. This program essentially lets you give yourself an interest-free loan.
Why it matters: A couple could withdraw a total of $120,000 from their RRSPs which can help you avoid mortgage insurance or buy sooner.
Learn more: Canada Revenue Agency – Home Buyers Plan
Get Money Back After You Buy
3. First-Time Home Buyers Tax Credit
If you bought your first home in 2024, you can claim a $10,000 non-refundable tax credit when you file your 2025 tax return. This translates to up to $1,500 back in tax savings (10,000 × 15%).
Why it matters: You get immediate tax relief if you bought in 2024.
Learn more: CRA – Line 31270 Home Buyers’ Amount
4. GST and HST New Housing Rebate
When you buy a new build home or substantially renovate one, you pay GST or HST. The New Housing Rebate allows you to recover part of this tax. The federal rebate applies to homes priced up to $450,000 and Ontario offers an additional rebate of up to $24,000.
Why it matters: Combined rebates can save you tens of thousands of dollars on a new home.
Learn more: CRA – GST HST New Housing Rebate
5. First Time Buyers GST Rebate (New in 2025)
The federal government has proposed a new rebate that will refund 100 percent of the 5 percent GST on newly built homes priced up to $1,000,000. Homes between $1,000,000 and $1,500,000 will get a partial rebate. This is expected to be in effect later in 2025.
Why it matters: On a new $800,000 condo this could save you $40,000 in tax.
Learn more: Department of Finance Canada – GST Relief for First Time Buyers
Cut Your Land Transfer Taxes
6. Ontario Land Transfer Tax Refund
In Ontario, first-time home buyers can receive a refund of up to $4,000 on the provincial land transfer tax. This means you could pay no provincial tax if you are buying a home priced up to $368,000.
Why it matters: This rebate reduces the amount of money you need at closing, which is especially helpful when every dollar counts.
Learn more: Ontario – Land Transfer Tax Refund for First‑Time Home Buyers
7. Toronto Municipal Land Transfer Tax Rebate
If you are buying your first home in Toronto, you will also have to pay the city’s own land transfer tax on top of the provincial one. The good news is the City of Toronto offers a rebate for first-time buyers that can save you up to $4,475.
Why it matters: Combined with the Ontario rebate, this can cut your total land transfer taxes by up to $8,475.
Learn more: City of Toronto – Municipal Land Transfer Tax Rebate
Final Thoughts
You do not have to navigate your first home purchase alone. These programs are designed to help you clear financial hurdles and make ownership possible even in a challenging market.
Before you buy, talk to your mortgage broker, lawyer or realtor about which programs you qualify for. Often, you can stack multiple incentives like the FHSA, HBP tax credit and land transfer tax rebates to save thousands.
Not sure where to start?
Valery, our AI real estate assistant, can help you explore first-time buyer programs, calculate how much you can save and even show you listings that fit your budget. Start a conversation with it today and let us get you closer to your first set of keys.