This article is for informational purposes only and does not constitute financial advice. Speak with a licensed mortgage professional before making any mortgage decisions.
Quick Answer: First-Time Home Buyer Programs in Canada for 2026
Quick Answer
- Five core federal programs are available: the First Home Savings Account (FHSA), the RRSP Home Buyers’ Plan (HBP), the First-Time Home Buyers’ Tax Credit (HBTC), the new First-Time Home Buyer GST/HST Rebate, and 30-year insured amortizations.
- Combined, these tools can deliver up to roughly $100,000 of tax-advantaged room per person, plus up to $50,000 in GST relief on a qualifying new build.
- Provincial and municipal programs stack on top — Ontario and Toronto land transfer tax refunds, British Columbia’s Property Transfer Tax exemption, and a temporary Ontario HST rebate on new homes are the most valuable in 2026.
- To qualify federally, you typically must be a Canadian resident aged 18 or older who has not occupied a home you or your spouse owned in the current calendar year or the previous four years.
- Note: the older CMHC First-Time Home Buyer Incentive (the shared-equity loan program) was discontinued on March 31, 2024 and is no longer available. For more, see our first-time home buyer guide.
Why 2026 Is a Different Buying Year
Roughly one in ten Canadians plans to buy a home within the next twelve months. If you are one of them, the rules just shifted in your favour, and the shift is bigger than most headlines suggest.
On March 12, 2026, Bill C-4 received Royal Assent and created a new federal GST/HST rebate aimed at first-time buyers of new construction. Five days later, the Canada Revenue Agency opened the application portal. That program alone can be worth up to $50,000 — more than many buyers’ down payments.
What few articles explain well is how the federal, provincial, and municipal programs fit together. Buyers who use only the most-publicized program often leave thousands of dollars in stackable savings on the table. This guide makes the stack visible before you get a real pre-approval.
Quick Start: Pick Your Path
Before you read further, find the bucket below that fits you. Each bucket unlocks a different combination of programs, and the order in which you use them matters.
Path A
First home, resale, under $1 million. FHSA, HBP, HBTC, provincial LTT refund, and 30-year insured amortization. The GST rebate does not apply to resale homes.
Path B
First home, new build, under $1 million. Everything in Path A plus the full $50,000 federal GST rebate. In Toronto you also stack the municipal LTT refund.
Path C
New build $1M to $1.5M. Same as Path B, but the federal GST rebate phases out as price rises toward $1.5 million. The insured-mortgage cap of $1.5 million still applies.
Path D
Returning to homeownership after the four-year window. You may have re-qualified as a first-time buyer under CRA rules. Confirm carefully — the new GST rebate has its own one-time-use rule.
If you are unsure how your savings translate into actual buying power, the down payment requirements in Canada guide is a good companion read.
Federal Programs Every First-Time Buyer Should Know
Five federal tools are available to most first-time buyers in 2026. The first three are savings and tax tools to set up well before you start house hunting. The fourth is brand new and only applies to new construction. The fifth changes how your monthly payment is calculated.
First Home Savings Account (FHSA)
The FHSA was introduced in April 2023 and remains the strongest standalone tool for first-time buyers in 2026. Unused contribution room can typically be carried forward up to $8,000, so opening the account as early as possible — even with a $1 deposit — starts the clock on your future room. Couples buying together can each open their own FHSA, putting up to $80,000 of combined tax-deductible room toward the same purchase. For a deeper walk-through, see our complete FHSA guide.
RRSP Home Buyers’ Plan (HBP)
The HBP has been around since 1992 and is well understood by lenders. The most common trap: funds typically must sit in the RRSP for at least 90 days before they can be withdrawn under the program, so last-minute RRSP top-ups before closing often will not qualify. For the rules on combining the two accounts and the repayment math, see how the Home Buyers’ Plan works.
First-Time Home Buyers’ Tax Credit (HBTC)
The HBTC is a $10,000 non-refundable federal tax credit, applied at the lowest federal tax rate. In practice, eligible buyers typically receive about $1,500 in tax savings, claimed on the personal tax return for the year of purchase. It is among the most-overlooked benefits — many buyers simply forget it exists when filing the year after they close.
The New First-Time Home Buyer GST/HST Rebate (Bill C-4)
The agreement of purchase and sale typically must be dated on or after March 20, 2025, and the home must be your primary residence. The rebate is one-time-use per buyer. Two practical points often missed: first, both partners in a couple must independently qualify as first-time buyers for the full rebate to apply on a joint purchase. Second, in Ontario the provincial 2026 budget proposed temporary HST relief that may stack on top of the federal rebate; that provincial measure depends on enabling legislation. See our breakdown of the HST new home rebate for the mechanics.
30-Year Insured Amortization for First-Time Buyers
Effective December 15, 2024 and continuing through 2026, all first-time buyers can access a 30-year amortization on insured mortgages — meaning mortgages with a down payment under 20%. This applies to both resale and newly built homes for first-time buyers. Buyers of newly constructed homes can also access the 30-year amortization regardless of first-time status.
The trade-off is real. A longer amortization lowers your monthly payment but increases total interest over the life of the loan. CMHC, Sagen, and Canada Guaranty also typically apply a 20-basis-point premium surcharge for the 30-year option. See our 30-year mortgages for first-time buyers guide for worked examples.
Provincial & Municipal Programs: How They Stack
Provincial and municipal programs typically apply on top of the federal stack — they do not cancel each other out. The summary table below covers the most-used programs. For the full provincial detail and the math on each refund, see land transfer tax across Canada.
| Province / City | Key Program | Maximum Saving | Eligibility Note |
|---|---|---|---|
| Ontario | Provincial LTT Refund | Up to $4,000 | Must occupy as principal residence within 9 months; spouse cannot have owned a home you lived in together. |
| Toronto | Municipal LTT Refund (stacks with Ontario) | Up to $4,475 ($8,475 combined) | Same eligibility as Ontario; rebate applied at closing by your real estate lawyer. |
| British Columbia | Property Transfer Tax Exemption | Up to ~$8,000 (illustrative) | Stricter “never owned anywhere” test; thresholds raised in recent years. |
| Alberta | No LTT (flat title transfer fee) | Effectively $0 LTT to save | Province does not levy a land transfer tax; closing fees apply but are modest. |
| Quebec | No province-wide FTHB LTT refund | Varies by municipality | Closings completed before a notary, not a lawyer. Some cities (e.g., Montreal) offer their own buyer assistance programs. |
| Nova Scotia | 2% Down Payment Pilot (selected credit unions) | Down-payment leverage | Province guarantees a portion of lender losses; rate cap typically prime plus 2%. |
| Prince Edward Island | Real Property Transfer Tax Rebate | Partial rebate up to a price cap | Must be a Canadian resident; principal residence requirement applies. |
A Six-Step Roadmap to Use These Programs Without Missing One
The programs above are most valuable when used in sequence. The most expensive mistakes happen when buyers reach for the right tool at the wrong moment.
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1
Confirm your first-time-buyer status.Run yourself, your spouse, and any co-buyer through the four-year rule. If anyone has lived in a home they owned in that window, eligibility may shift, and the LTT refund in particular can be reduced or lost.
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2
Open an FHSA today, even with $1.Contribution room only starts accumulating after the account is opened. Opening early — even years ahead of buying — can quietly build $24,000 to $40,000 of room you would otherwise miss.
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3
Build your down payment across FHSA and HBP.Layer FHSA contributions first for the deduction, then RRSP for HBP withdrawal later. Mind the 90-day rule on RRSP funds before withdrawal under the HBP.
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4
Get a real pre-approval.Federally regulated lenders typically must qualify you at the greater of contract rate plus 2% or 5.25% under the OSFI B-20 stress test. Get a real pre-approval before you start touring homes.
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5
At closing, instruct your lawyer or notary on every applicable rebate.The Ontario LTT refund, the Toronto MLTT refund, and the BC PTT exemption are typically applied on the Statement of Adjustments. Missing this step is one of the most common — and most expensive — first-time-buyer errors.
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6
File for the HBTC and the FTHB GST/HST rebate after closing.The HBTC goes on your tax return for the year of purchase. The federal GST rebate can be credited at closing through the builder, or you can apply directly to the CRA within two years of taking ownership.
Common Mistakes That Cost First-Time Buyers Thousands
- Treating the discontinued FTHBI as still active. The CMHC shared-equity First-Time Home Buyer Incentive ended on March 31, 2024. Articles citing a “5% to 10% government down payment loan” are out of date.
- Missing the land transfer tax refund at closing. The Ontario and Toronto LTT refunds are claimed by your real estate lawyer at registration. Miss the window and you can typically reclaim within 18 months — but many buyers never realize they qualified.
- Putting a non-qualifying co-owner on title. Adding a parent who already owns a home to title can reduce or eliminate the LTT refund. Talk to a broker and lawyer before structuring ownership.
- Opening an FHSA only when ready to buy. Contribution room only starts accumulating once the account is opened. Even a $1 deposit years ahead can build years of carry-forward room.
- Assuming both partners qualify for the FTHB GST rebate. Eligibility uses the same four-year look-back as the HBP. If your spouse or partner has owned a home you lived in within the past four years, the rebate may be reduced or lost.
- Choosing 30-year amortization without modelling the trade-off. A 30-year insured amortization lowers the monthly payment but adds significant total interest plus a 20-basis-point premium surcharge. Run both scenarios before signing.
- Forgetting Quebec’s notarial closing requirement. Quebec real estate purchases close before a notary, not a lawyer. Rebate workflows differ from common-law provinces — confirm with your notary early.
For more on the costs that quietly inflate a first home purchase, see our breakdown of hidden costs first-time buyers miss in Canada.
Frequently Asked Questions
Who counts as a first-time home buyer in Canada in 2026?
Can I use the FHSA and the RRSP Home Buyers’ Plan for the same home?
How much is the new federal GST rebate for first-time home buyers, and how do I apply?
Is the CMHC First-Time Home Buyer Incentive still available in 2026?
How much do I need for a down payment as a first-time buyer in Canada?
Do all first-time buyers qualify for a 30-year amortization?
Which province has the best programs for first-time buyers in 2026?
What is the smartest order to use these programs in?
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About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & References
- Canada Revenue Agency. (March 17, 2026). First-time buyers can save more on new homes — FTHB GST/HST rebate is available now.
- Canada Revenue Agency. Participating in your FHSAs.
- Canada Revenue Agency. Home Buyers’ Plan (HBP).
- Government of Canada · Canada Gazette. Insurable Housing Loan Regulations — 30-year amortization eligibility and $1.5M cap.
- Ontario Ministry of Finance. Land Transfer Tax Refunds for First-Time Homebuyers.
- City of Toronto. Municipal Land Transfer Tax Rebate Opportunities.
- Government of British Columbia. First Time Home Buyers’ Program — Property Transfer Tax.
- Canada Mortgage and Housing Corporation (CMHC). Mortgage Loan Insurance for Consumers.
- Office of the Superintendent of Financial Institutions (OSFI). Guideline B-20 — Residential Mortgage Underwriting Practices.
- Pegasus Mortgage Lending Center Inc. CMHC Mortgage Rules 2026: Canada’s Insured Limits Explained.