What First-Time Home Buyer Programs Exist in Canada in 2026?
Canada's three main federal programs for first-time buyers in 2026 are the First-Home Savings Account (FHSA), the Home Buyers' Plan (HBP), and the land transfer tax rebates and exemptions offered by the provinces. The federal First-Time Home Buyer Incentive was discontinued in March 2024 and no longer accepts applications. Used together, an FHSA and the HBP can put over $75,000 of tax-assisted money toward a first home.
First-Home Savings Account (FHSA)
The FHSA combines the tax deduction of an RRSP with the tax-free withdrawal of a TFSA when used for a first home:
| Feature | Amount |
|---|---|
| Annual contribution limit | $8,000 |
| Lifetime contribution limit | $40,000 |
| Unused room carry-forward | Up to $8,000 per year |
You must be a first-time home buyer, at least 18, and a Canadian resident to open one. The account can stay open for a maximum of 15 years, and a qualifying withdrawal for a first home is entirely tax-free.
Home Buyers' Plan (HBP)
The HBP lets you withdraw up to $35,000 from your RRSP tax-free to buy or build a qualifying first home. Key terms:
- Repayment begins in the second year after withdrawal and is spread over 15 years.
- If you miss a scheduled repayment, that amount is added to your taxable income for the year.
- You must be a first-time home buyer (generally, you or your spouse did not own a home you lived in during the preceding four calendar years).
Stacking strategy: the FHSA and HBP can be used together. Contributing to the FHSA first (getting the deduction), then withdrawing from the RRSP via the HBP, lets a single buyer direct over $75,000 toward the purchase with full tax assistance.
The First-Time Home Buyer Incentive is gone
The federal First-Time Home Buyer Incentive — a shared-equity program where the government took a stake in your home — was discontinued in March 2024. Existing participants continue under the original terms, but no new applications are accepted. If an older article still mentions it as available, it is out of date.
Provincial land transfer tax relief
| Jurisdiction | First-time buyer relief |
|---|---|
| Ontario | Rebate up to $4,000 |
| Toronto (municipal, on top of Ontario) | Rebate up to $4,475 |
| BC | Exemption up to $8,000 (full exemption at $500K or less, phased out by $860K) |
These are claimed at closing or through the land registry, depending on the jurisdiction — ask your lawyer or notary how to file for them.
Frequently asked questions
Can I use the FHSA and the Home Buyers' Plan at the same time?
Yes. They are separate programs and can be combined for the same purchase. You can also transfer funds between an RRSP and an FHSA within the limits, subject to the rules of each plan.
What happens to my FHSA if I don't buy a home?
Any unused FHSA balance can be transferred to your RRSP tax-free when the 15-year window closes, preserving the tax-deferred status. There is no penalty — you simply lose the tax-free-withdrawal feature.
Does the HBP apply to a home I already own?
No — it is for a qualifying first home, with narrow exceptions (for example, a breakdown of a marriage or common-law relationship). Building or buying a second property does not qualify.
I withdrew under the HBP and can't make a repayment this year. What happens?
The amount you were supposed to repay is added to your taxable income for that year, and your total repayment obligation shrinks accordingly. There is no additional penalty beyond the tax.
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Sources
- Canada Revenue Agency, First-Home Savings Account: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
- Canada Revenue Agency, What's new — Home Buyers' Plan: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/whats-new-home-buyers-plan.html
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