First-Time Home Buyer Programs in Canada: 2025 Guide to Incentives & Grants
Introduction
Buying your first home is a major milestone, but for many Canadians, affordability is a challenge. Fortunately, first-time home buyers in Canada have access to government grants, tax incentives, and down payment assistance programs to make homeownership more attainable.
This guide outlines all available first-time buyer programs in 2025, including eligibility requirements and how to apply. Whether you’re purchasing in Calgary, Toronto, or Vancouver, understanding these incentives can save you thousands.
Best First-Time Home Buyer Programs in Canada (2025)
1. First-Time Home Buyer Incentive (FTHBI)
The First-Time Home Buyer Incentive is a shared equity program offered by the Government of Canada.
✔ Allows eligible buyers to receive 5% or 10% of their home’s purchase price as an interest-free loan.
✔ Reduces monthly mortgage payments by increasing the down payment.
✔ Must be repaid after 25 years or when selling the home.
Eligibility Requirements:
✔ Must be a first-time home buyer
✔ Household income must be below $120,000 ($150,000 in high-cost areas)
✔ The total mortgage amount cannot exceed 4.5 times annual income
Apply for the First-Time Home Buyer Incentive
2. RRSP Home Buyers’ Plan (HBP)
The Home Buyers’ Plan (HBP) allows first-time buyers to withdraw up to $35,000 tax-free from their RRSP to use as a down payment.
✔ Funds can be used for any type of home purchase (new build or resale).
✔ Must be repaid into the RRSP within 15 years to avoid taxes.
✔ Great for buyers saving for a down payment while benefiting from RRSP growth.
Eligibility Requirements:
✔ Must be a first-time home buyer
✔ Must use the home as a primary residence
✔ Must be a Canadian resident at the time of withdrawal
Learn More About the RRSP Home Buyers’ Plan
3. First-Time Home Buyers’ Tax Credit (HBTC)
The First-Time Home Buyers’ Tax Credit (HBTC) provides a $10,000 non-refundable tax credit, saving buyers up to $1,500 on taxes in the year of purchase.
✔ Helps reduce closing costs such as legal fees and land transfer taxes.
✔ Simple one-time claim on your annual tax return.
Eligibility Requirements:
✔ Must be a first-time home buyer
✔ The home must be your primary residence
✔ Must claim the credit within the same tax year of purchase
Claim the First-Time Home Buyers’ Tax Credit
4. Land Transfer Tax Rebates (Province-Specific)
Several provinces and municipalities offer rebates on land transfer taxes for first-time home buyers.
Ontario Land Transfer Tax Rebate
✔ Up to $4,000 rebate on land transfer tax.
✔ Applies to homes under $368,000 (full rebate).
✔ Available in Toronto, Mississauga, Ottawa, and other cities.
British Columbia Property Transfer Tax Exemption
✔ Full tax exemption for homes under $500,000.
✔ Partial exemption for homes between $500,000 and $525,000.
Toronto First-Time Buyer Land Transfer Tax Rebate
✔ Up to $4,475 rebate on Toronto’s municipal land transfer tax.
✔ Can be combined with the Ontario rebate.
Check Your Province’s Land Transfer Tax Rebates
5. CMHC Low Down Payment Program (5% Down Payment Option)
Through the Canada Mortgage and Housing Corporation (CMHC), first-time buyers can qualify for a 5% down payment with mortgage default insurance.
✔ Allows buyers to purchase with a minimum 5% down instead of 20%.
✔ CMHC insurance protects lenders, making it easier to get approved.
✔ Requires monthly insurance premiums based on the loan amount.
Eligibility Requirements:
✔ The home must be your primary residence
✔ The purchase price cannot exceed $1,000,000
✔ Buyer must meet standard mortgage qualification criteria
Learn More About CMHC Mortgage Insurance
How to Qualify for First-Time Home Buyer Programs
✔ Check your eligibility – Each program has income limits, home price restrictions, and residency requirements.
✔ Get mortgage pre-approval – Banks and mortgage lenders will assess your qualifications.
✔ Apply for rebates & tax credits – Some programs require applications, while others (like tax credits) are claimed automatically.
✔ Work with a real estate expert – A professional can guide you through the best options based on your finances and goals.
JN Real Estate Group’s Expert Take
At JN Real Estate Group, we help first-time buyers navigate homeownership with confidence. Our team simplifies the application process for incentives and grants, ensuring you maximize every available program.
If you’re considering buying a home in 2025, let’s create a strategy that works for your budget.
TL;DR – Key Takeaways
✔ First-time home buyers in Canada can access incentives, tax credits, and rebates to lower costs.
✔ The First-Time Home Buyer Incentive offers a shared equity loan to reduce mortgage payments.
✔ The RRSP Home Buyers’ Plan allows tax-free withdrawals of up to $35,000.
✔ Land transfer tax rebates are available in Ontario, BC, and other provinces.
✔ CMHC’s low down payment program enables buyers to purchase with just 5% down.
Start Your Home Buying Journey Today
📞 Ready to buy your first home? Let JN Real Estate Group help you find the best opportunities and maximize your savings.
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