Most first-time buyer guides list the same six programs and tell you how much each one is worth. What they almost never show: how to use all of them at the same time, in what order, and what the actual combined number looks like.
Here's that number: a couple who uses every applicable federal program can access $200,000 in tax-advantaged down payment savings — $100,000 per person — before counting a single provincial rebate. Add Ontario's land transfer tax rebate, or a Toronto purchase, or a newly-built home during Ontario's 2026 HST window, and the total climbs significantly higher.
This guide covers all of it: current program details, the mechanics that most articles skip, a worked example at three price points, and the exact order to use each program for maximum benefit.
All programs at a glance
A quick reference before the deep dive. These are all current as of 2026.
| Program | Per person | Per couple | Repayment? | Notes |
|---|---|---|---|---|
| First Home Savings Account (FHSA) | $40,000 tax-sheltered | $80,000 | No | Deductible in, tax-free out |
| Home Buyers' Plan (HBP) | $60,000 RRSP withdrawal | $120,000 | Yes — 15 yrs | 1/15 per year, or added to income |
| FHSA + HBP combined | $100,000 | $200,000 | Partial | Both usable for same purchase |
| Home Buyers' Tax Credit (HBTC) | $1,500 credit | Same | No | Claim $10,000 on line 31270 |
| Federal GST rebate (new builds) | Up to $50,000 | Same | No | Signed March 2025–Dec 2030 |
| 30-year amortization | ~$179–$566/mo savings | — | — | Costs more total interest |
| Ontario LTT rebate | Up to $4,000 | Same | No | Never owned anywhere, ever |
| Toronto LTT rebate | Up to $4,475 | Same | No | In addition to Ontario rebate |
| Ontario HST rebate (2026–27) | Up to $130,000 | Same | No | New builds; all buyers; time-limited |
| BC Property Transfer Tax exemption | Up to $8,000 | Same | No | Homes up to $835K fair market value |
The FHSA: the most important account you may not have opened
The First Home Savings Account is a hybrid of an RRSP and a TFSA specifically for first-time buyers. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals to buy a home are completely tax-free (like a TFSA). No other account in Canada gives you both deductions.
The lifetime limit is $40,000 per person — you can contribute up to $8,000 per year. Opened by a couple, that's $80,000 in tax-sheltered savings before considering any other program.
The "open early" rule is worth real money
The FHSA participation room clock starts the day you open the account — not the day you make your first contribution. If you open your FHSA before December 31 of a given year, even with a $0 deposit, you earn that year's $8,000 in contribution room.
Open in December 2026 vs. January 2027? That's an $8,000 difference in lifetime room, permanently. There is no cost to opening the account early. Do it now, even if you can't contribute yet.
Open your FHSA today at any major Canadian bank or broker. You don't need to deposit anything. Opening before December 31 starts the contribution room clock. A couple who both open in December 2026 but contribute nothing immediately still banks $16,000 in room for 2026 — room they can use in 2027 or any future year.
The carry-forward rule most people get wrong
Many people assume FHSA carry-forward works like a TFSA — that unused room accumulates indefinitely. It does not. Carry-forward is capped at one year's worth ($8,000).
The maximum you can contribute in any single year is $16,000: the current year's $8,000 plus up to $8,000 from one prior year of unused room. Room from two or more years ago that you didn't use is permanently gone.
| Scenario | Max contribution this year | What people assume |
|---|---|---|
| Opened last year, contributed $0 | $16,000 ($8K current + $8K carry-forward) | $16,000 ✓ |
| Opened 2 years ago, contributed $0 each year | $16,000 ($8K current + max $8K carry-forward) | $24,000 ✗ — $8K is lost |
| Opened 3 years ago, contributed $0 each year | $16,000 ($8K current + max $8K carry-forward) | $32,000 ✗ — $16K is lost |
This is one of the most common FHSA mistakes. The carry-forward does not roll forward year after year. Open the account early, but don't assume that not contributing has no cost — room beyond one year is gone forever.
The RRSP fallback makes the FHSA zero-risk
Here's what almost no guide mentions: if you open an FHSA, max it out, and then decide not to buy a home, the balance transfers to your RRSP tax-free — without consuming any RRSP contribution room.
This means the FHSA is strictly better than putting those same dollars directly into an RRSP. You get the tax deduction now, and you keep all your RRSP room for later. There is no scenario where opening an FHSA and contributing is worse than not doing it.
The FHSA closes at the earlier of: 15 years from the year it was opened, the year you turn 71, or December 31 of the year after your first qualifying withdrawal. If any of these trigger and you haven't bought a home, the balance rolls to your RRSP automatically — no taxes, no penalties.
The Home Buyers' Plan: $60,000 per person from your RRSP
The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP — tax-free at withdrawal — to use as a down payment. The limit was raised from $35,000 in Budget 2024. A couple can pull $120,000 combined.
The catch: it's a loan from yourself. You must repay it over 15 years (1/15 per year), starting the second year after you made the withdrawal. If you skip a year's repayment, that amount is added to your taxable income — you pay income tax on it as if you had taken it out of the RRSP normally.
FHSA has no repayment. HBP does. Use FHSA first.
Both programs can be used for the same home purchase, but they aren't equivalent. The FHSA is a gift: contribute, withdraw, done. The HBP is a 15-year repayment obligation. Everything equal, use your FHSA first and fall back on HBP for what's still needed.
| FHSA | Home Buyers' Plan | |
|---|---|---|
| Per person max | $40,000 | $60,000 |
| Per couple max | $80,000 | $120,000 |
| Tax on withdrawal | None | None (at time of withdrawal) |
| Repayment required | No | Yes — 1/15 per year for 15 years |
| Can use for same purchase | Yes — both usable simultaneously | |
| Existing account needed | No (open a new FHSA) | Yes (must have RRSP funds) |
Three more federal programs
Home Buyers' Tax Credit — $1,500 most people forget to claim
The Home Buyers' Tax Credit (HBTC) gives first-time buyers a $1,500 non-refundable federal tax credit in the year they buy. You claim $10,000 on line 31270 of your tax return; at the 15% federal rate that's $1,500 off your tax bill.
A few things to know: it's non-refundable, meaning if you owe no federal tax, you get no benefit. You and a partner can split the $10,000 claim in any proportion. There's no income limit. You claim it on the tax return for the year you bought — not the year you move in.
Many first-time buyers miss this credit entirely because it's not automatic — you have to claim it on your tax return. Don't leave $1,500 on the table.
Federal GST rebate on new builds — up to $50,000
Bill C-4 (Royal Assent March 12, 2026) eliminated the 5% federal GST on new homes purchased by first-time buyers. This applies to purchase agreements signed between March 20, 2025 and December 31, 2030 for homes priced up to $1 million (with a partial rebate up to $1.5M).
The maximum rebate is $50,000 (5% of $1M). It only applies to newly built homes — resale purchases don't qualify. When combined with Ontario's provincial HST rebate (see below), the savings on a new Toronto condo can be extraordinary.
30-year amortization — the monthly savings vs. lifetime cost trade-off
Since December 15, 2024, first-time buyers with insured mortgages (down payment under 20%) can choose a 30-year amortization on any home, resale or new, with a purchase price up to $1.5 million.
The monthly savings are real. The total interest cost is also real.
| Mortgage amount | Rate | Monthly savings (30 vs 25 yr) | Extra total interest over 30 yrs |
|---|---|---|---|
| $400,000 | 5.0% | $178/mo | ~$59,000 more |
| $600,000 | 5.0% | $265/mo | ~$88,000 more |
| $800,000 | 5.0% | $354/mo | ~$118,000 more |
The 30-year amortization is a cash-flow tool, not a way to pay less interest. If the $265/month you save goes into a TFSA or RRSP instead of extra mortgage principal, you likely come out ahead at typical long-run investment returns. If it gets spent, you don't. Make the choice deliberately.
Provincial programs
Ontario — land transfer tax rebate + a time-limited HST windfall
Ontario first-time buyers get a provincial land transfer tax (LTT) rebate of up to $4,000, which covers the full LTT on homes priced up to approximately $368,000 and is capped at $4,000 above that price. Buyers purchasing in Toronto get an additional municipal LTT rebate of up to $4,475 on top.
Eligibility is strict: you must never have owned a principal residence anywhere in the world, at any time. This is different from the four-year lookback rule for the FHSA and HBP. Prior homeowners in another country don't get this rebate.
Ontario's expanded HST rebate (April 1, 2026 – March 31, 2027): For purchase agreements on new homes signed during this one-year window, Ontario is offering a full 13% HST rebate on homes up to $1 million — a maximum of $130,000. This applies to all buyers, not just first-timers. A first-time buyer purchasing a $950,000 new condo in Toronto during this window who also qualifies for the federal GST rebate could save over $175,000 in sales tax combined. This window closes March 31, 2027.
British Columbia
BC's Property Transfer Tax (PTT) first-time buyer exemption eliminates the full PTT on homes with a fair market value up to $835,000, saving up to $8,000. There's a partial exemption that phases out between $835,000 and $860,000 — above $860,000 there's no exemption at all.
Like Ontario's LTT rebate, the BC exemption requires that you have never owned a principal residence anywhere in the world. You must also be a Canadian citizen or permanent resident who has lived in BC for at least one year immediately before registration (or filed two or more BC income tax returns in the last six years), and you must move in within 92 days and occupy the home for the first full year.
Other provinces
The stack: three real scenarios
Here's what the combined programs look like at three different purchase prices and situations. Both buyers in each scenario are first-time buyers who have each had their FHSA open for two years and contributed $16,000 per person ($8,000/year).
| Program | Ottawa couple $550K resale |
Toronto couple $850K resale |
Toronto couple $950K new condo (Apr 2026–Mar 2027) |
|---|---|---|---|
| FHSA (both, 2 years each) | $32,000 tax-sheltered | $32,000 tax-sheltered | $32,000 tax-sheltered |
| HBP (both, max) | Up to $120,000 | Up to $120,000 | Up to $120,000 |
| Home Buyers' Tax Credit | $1,500 | $1,500 | $1,500 |
| Federal GST rebate | Resale — N/A | Resale — N/A | ~$47,500 |
| Ontario LTT rebate | $4,000 | $4,000 | $4,000 |
| Toronto municipal LTT | Ottawa — N/A | $4,475 | $4,475 |
| Ontario HST rebate (2026–27) | Resale — N/A | Resale — N/A | ~$123,500 |
| Total benefit (excl. HBP) | $37,500 | $41,975 | ~$212,975 |
The Toronto new-build scenario during the 2026–27 window is exceptional — the Ontario HST rebate alone is more than the Home Buyers' Plan limit per person. For buyers on the fence between resale and new construction in Ontario, this window changes the math significantly.
Order of operations
Most guides list programs. Very few tell you which to use first. Here's the correct sequence:
-
1Open your FHSA today — even if you can't contribute yet
Opening the account starts the room clock. Opening in December vs. January costs you $8,000 in lifetime room permanently. Both partners should open accounts as soon as they're eligible (age 18, Canadian resident, first-time buyer).
-
2Max FHSA contributions before relying on HBP
FHSA withdrawals require no repayment. HBP withdrawals do. If you're choosing between putting $8,000 into your FHSA or your RRSP (for eventual HBP use), the FHSA wins — you get the same tax deduction and no 15-year repayment obligation.
-
3Use HBP for what FHSA alone can't cover
Once your FHSA is at or near its lifetime limit, the HBP becomes the right tool for additional tax-advantaged down payment funds. You can use both for the same purchase — they're complementary, not mutually exclusive.
-
4Claim the HBTC on your first post-purchase tax return
This is $1,500 that's easy to miss. Claim $10,000 on line 31270 in the year you close. You can split the claim with a partner in any proportion.
-
5For new construction in Ontario before March 31, 2027: factor in the HST rebate before choosing resale vs. new
The Ontario HST rebate can be worth more than all federal programs combined on a typical Toronto condo purchase. Run the numbers before assuming resale is the better deal. This window closes March 31, 2027.
Who actually qualifies: the fine print that matters
The four-year lookback (FHSA and HBP)
You're a first-time buyer for FHSA and HBP purposes if you haven't owned and occupied a home as your principal residence at any point during the current calendar year (before the last 30 days) or the four preceding calendar years. This means people who owned a home five or more years ago may qualify again.
Divorced or separated individuals have an additional exception for the HBP: if you've been living separately for at least 90 days and your prior HBP balance (if any) is fully repaid, you can qualify even if you owned a home more recently. You must not currently be in a relationship with someone who owns a home you can live in.
Land transfer rebates use a different rule — no reset
Ontario, BC, and PEI land transfer rebates use a strict lifetime standard: you must never have owned a principal residence anywhere in the world, at any time. There is no four-year reset. A person who owned a condo in 2010, sold it in 2012, and is now buying again for the first time in over a decade still doesn't qualify for the Ontario LTT rebate.
This is one of the most misunderstood distinctions in Canadian first-time buyer programs. Two people in identical situations — both last owned a home six years ago — could both qualify for the FHSA and HBP, but neither would qualify for the Ontario or BC land transfer rebate.
| Program | Definition of "first-time buyer" |
|---|---|
| FHSA | Four-year lookback (also required at account opening AND at withdrawal) |
| Home Buyers' Plan | Four-year lookback (required at withdrawal) |
| Home Buyers' Tax Credit | Four-year lookback |
| Ontario LTT rebate | Never owned a principal residence anywhere in the world, ever |
| Toronto LTT rebate | Never owned a principal residence anywhere in the world, ever |
| BC PTT exemption | Never owned a principal residence anywhere in the world, ever |
What was cancelled — and why it failed
The First-Time Home Buyer Incentive (FTHBI) was cancelled on March 21, 2024. It was a shared-equity program where the government took a 5–10% stake in your home in exchange for a loan of the same size at closing.
The program was intended to help 100,000 Canadians buy homes. Fewer than 400 households actually used it — a failure rate that's almost comical, and worth understanding.
The structural problem: the program capped combined household income at $120,000–$150,000 and capped the mortgage at 4× household income. In a market where the average Toronto home costs over $1 million, the maximum eligible purchase price was roughly $600,000. The program was mathematically excluded from the exact markets it was trying to help. Rural Canada had more accessible prices, but buyers there typically had different challenges (down payment size, income variability) that the program also didn't address well.
The FTHBI is gone. Don't factor it into any planning.