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First Time Home Buyer Programs

There are 3 Government programs available to first time home buyers however, you do not necessarily need to be a first time home buyer to utilize them.

You are considered a First Time Homebuyer If:

  • you have never purchased a home before

  • you did not occupy a home that you or your current spouse or common-law partner owned in the last 4 years (the 4-year period begins on January 1 of the fourth year before the Incentive is funded and ends 31 days before the date the Incentive is funded)

  • you have recently experienced the breakdown of a marriage or common-law partnership (even if you don’t meet the other first-time home buyer requirements)



First Time Homebuyers Plan

A program that allows you to withdraw up to $35,000 TAX FREE from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.

Do I need to repay the first time homebuyers plan back?

Yes, the minimum requirement to repay is 1/15 each year of the total amount withdrawn. You will indicate in your tax return how much of your total RSP contributions is to repay the HBP.

EX: Withdraw $35,000 / 15years = $2,333/year would have to put back into an RSP.

Note: you can only withdraw money that has been in the RSP for at least 90days or you will be taxed on that portion.


First Time Buyers Tax Credit

​In 2009 this program was introduced for first time home buyers and provides a non-refundable tax credit in the year you purchased and title was put in your name. 

To qualify

- you or your spouse or common-law partner acquired a qualifying home; and

- you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or any of the four preceeding years.

- persons with disabilities may also be eligible. Please see the link below to Revenue Canada's website for full details.  

How do I get my credit?

It is entered into your tax return.



First Time Buyers Incentive Program

Starting in Sept 2019, the Federal Government introduced this program and will accept applications until March 2025. It is a shared equity program between the applicant/s and the Government on insured mortgages.


Main Details of Program

  • The applicants must be considered first time home buyers and have a min of 5% down payment from their own sources. 

  • your total annual qualifying income/s doesn’t exceed $120,000 ($150,000 if the home you are purchasing is in Toronto, Vancouver, or Victoria)

  • your total borrowing, meaning the amount of your mortgage plus the amount provided by the program, is no more than 4 times your qualifying income (4.5 times if the home you are purchasing is in Toronto, Vancouver or Victoria)

  • you or your partner are a first-time homebuyer and a Canadian citizen, permanent resident or non-permanent resident authorized to work in Canada

  • you meet the minimum down payment requirements with traditional funds (savings, withdrawal/collapse of a Registered Retirement Savings Plan (RRSP), or a non-repayable financial gift from a relative/immediate family member)

  • You must live in the property until the Incentive has been repaid.

  • For more detail, click here for the official website

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