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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:
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you have never purchased a home before
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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)
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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)
GETTING STARTED
First Time Homebuyers Plan
A program that allows you to withdraw up to $60,000 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Yes, the minimum requirement to repay is 1/15 each year of the total amount withdrawn.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 $60,000 / 15years = $4,000/year would have to put back into an RSP.
The repayment used to begin 2 years after however with recent Government Changes (Spring 2024), if you took possession between Jan 1/22 - Dec 31/25 will have 5yrs before they need to start repaying this to their 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.
GETTING STARTED
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.
GETTING STARTED
New Home Builds
First time homebuyers who are putting less than 20% down, have the option to a 30yr amortization (rather than the standard 25yrs). While this would create more interest, it would also reduce the mortgage payment to help first time buyers get going.