First-Time Home Buyer Calculator

Canadian First-Time Home Buyer Programs in 2026

Canada offers several programs designed to help first-time buyers enter the housing market. The First Home Savings Account (FHSA), introduced in 2023, lets you save up to $8,000 per year (lifetime max $40,000) in a tax-deductible account where growth is entirely tax-free when used for a qualifying home purchase. The Home Buyers’ Plan (HBP) allows you to withdraw up to $60,000 from your RRSP tax-free, with repayment spread over 15 years starting the second year after the withdrawal (the fifth year for first withdrawals made from 2022 to 2025). These two programs can be combined, giving you access to up to $100,000 in registered savings.

On the tax credit side, the federal Home Buyers’ Tax Credit (HBTC) provides a $1,400 non-refundable credit. Ontario offers a land transfer tax rebate of up to $4,000 for first-time buyers, and Toronto provides an additional municipal rebate of up to $4,475. British Columbia exempts the property transfer tax on the first $500,000 of a first-time buyer’s home (worth up to $8,000) for homes up to $835,000, with the exemption phasing out by $860,000. Quebec pays a refundable tax credit for access to property of up to $5,875 against the welcome tax. Prince Edward Island waives its 1% real property transfer tax entirely for first-time buyers, at any price, provided every buyer on the deed qualifies.

Buying a newly built or substantially renovated home? The First-Time Home Buyers’ GST/HST rebate, in force since Bill C-4 received Royal Assent in March 2026, refunds the full 5% GST (or the federal part of the HST) — up to $50,000 — on a home valued at $1 million or less. The rebate shrinks gradually between $1 million and $1.5 million and is nil above that. It is separate from, and larger than, the older GST/HST new housing rebate, which phases out by $450,000.

Key Programs at a Glance

To qualify as a first-time home buyer under federal rules, neither you nor your spouse can have owned a home that you lived in during the four calendar years preceding the purchase. Provincial definitions may vary. Start building FHSA savings early—even before you are actively house hunting—to maximize both the tax deductions and the investment growth before you need the funds.