Newfoundland First Time Buyer Programs 2025

All federal and provincial programs for first-time homebuyers in NL — tax credits, savings accounts, and down payment assistance explained.

First-Time Buyer Advantage in Newfoundland

Newfoundland and Labrador is one of Canada's best provinces for first-time homebuyers. The combination of NL's affordable home prices (average ~$340,000 in St. John's, far lower in most other communities), very low deed transfer tax (0.4%), and access to both federal and provincial programs makes homeownership achievable for many NL residents who would struggle in other provinces.

Program Summary — NL First-Time Buyers

Program	Type	Value
First Home Savings Account (FHSA)	Federal savings	Up to $40,000 tax-free
Home Buyers' Plan (RRSP)	Federal withdrawal	Up to $35,000 tax-free
Federal First-Time Buyers' Tax Credit	Federal tax credit	Up to $1,500
NL First-Time Buyers' Tax Credit	Provincial tax credit	Up to $1,500
GST/HST New Home Rebate	Federal/provincial rebate	Partial HST rebate on new builds
NL Deed Transfer Tax	Provincial tax	Only 0.4% — one of Canada's lowest

First Home Savings Account (FHSA)

The FHSA is the most powerful new first-time buyer tool in years. Open it at any bank, credit union, or brokerage. Contribute up to $8,000/year (lifetime max $40,000). Contributions are tax-deductible like an RRSP. Withdrawals for a qualifying home are tax-free like a TFSA. If you don't buy a home, you can transfer the balance to your RRSP. Open one as soon as possible — your contribution room accumulates from the year you open the account, not from your birth year.

Home Buyers' Plan (RRSP Withdrawal)

If you have RRSP savings, you can withdraw up to $35,000 tax-free for a first home purchase under the Home Buyers' Plan. For couples buying together (both qualifying as first-time buyers), you can combine up to $70,000 from your respective RRSPs. You have 15 years to repay the amount back into your RRSP, starting in the second year after withdrawal. Missing a repayment is counted as RRSP income that year.

NL Provincial First-Time Home Buyer Tax Credit

In addition to the federal credit, Newfoundland offers its own provincial first-time home buyer tax credit. It is a non-refundable credit of 15% on up to $100 of qualifying home purchase costs. This provides up to $1,500 toward your provincial tax bill. Claim it on your NL provincial income tax return (Schedule NL479) for the year you purchased your home. Both the federal and provincial credits can be claimed in the same year, providing up to $3,000 combined.

Am I a First-Time Buyer in NL?

For federal programs, you qualify as a first-time buyer if you or your spouse/common-law partner have not owned a home that was your principal place of residence at any time during the calendar year before your purchase, or in any of the preceding four calendar years. NL's provincial credit follows similar rules. If you owned a home more than 4 years ago but have been renting since, you may qualify again — check with your tax advisor.