First-Time Buyer Tax Credits Canada 2025 | FHSA, HBP, HBTC

First-Time Buyer Programs in Canada

Canada offers several federal and provincial programs specifically for first-time homebuyers. Used together, they can reduce your effective tax burden and increase your purchasing power significantly. Here's every program available as of 2025.

    Definition of "First-Time Buyer" in Canada: You (and your spouse/common-law partner) have not owned a principal residence at any time during the preceding 4 calendar years. Note: each program may have slightly different definitions — check individual program rules.
  

Federal Programs

1. First Home Savings Account (FHSA)

Introduced in 2023, the FHSA is a registered account combining RRSP and TFSA features for first-time homebuyers:

Annual contribution room: $8,000
Lifetime contribution limit: $40,000
Tax deduction: Contributions are deductible (like an RRSP)
Tax-free growth: Investment income grows tax-free (like a TFSA)
Tax-free withdrawal: Withdrawals for a qualifying first home purchase are tax-free
Eligible to open: Canadian resident, 18–71, first-time buyer who intends to buy within 15 years

The FHSA is the most powerful first-time buyer tool Canada has ever offered. If you're planning to buy within 5–10 years, open an FHSA now and contribute the maximum each year. $8,000/year × 5 years = $40,000 of contributions that are fully deductible AND withdrawn tax-free.

2. Home Buyers' Plan (HBP)

The HBP lets you withdraw up to $60,000 from your RRSP tax-free to use as a down payment (increased from $35,000 in 2024 Budget). You must repay the withdrawal to your RRSP over 15 years (starting 2 years after withdrawal). If combined with a spouse/partner, you can withdraw up to $120,000 total.

3. Home Buyers' Tax Credit (HBTC)

A non-refundable federal tax credit of $100 (as of 2022 Budget), which generates approximately $1,500 in tax savings (at the 15% federal rate). Claim on your tax return in the year you buy. Both first-time buyers in a couple can claim it.

Provincial Programs

Ontario: Land Transfer Tax Rebate

First-time buyers in Ontario receive a rebate on provincial LTT up to $4,000 and on Toronto's municipal LTT up to $4,475. These rebates are applied at closing — you never write the cheque for that amount.

BC: First-Time Buyer PTT Exemption

Homes priced at $500,000 or less receive a full PTT exemption. Partial exemption between $500,000 and $525,000. Maximum saving: approximately $8,000.

Other Provinces

Manitoba: LTT rebate up to $4,500 for first-time buyers
PEI: Land transfer tax rebate up to $2,000
New Brunswick: No specific FTB program

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First-Time Buyer Savings Calculator

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