First-Time Home Buyer Programs in Canada: What You Need to Know in 2025

Buying your first home is a big deal—emotionally and financially. And if you’re like most Canadians stepping into the real estate market for the first time, you’re probably wondering, “How am I ever going to afford this?”

Well, the good news is that there are several programs and rebates out there designed specifically to help first-time home buyers reduce the financial stress of homeownership. Whether it’s help with your down payment, a tax break, or a refund on land transfer taxes, knowing what you’re eligible for can save you thousands of dollars—and maybe even make homeownership possible when it otherwise wouldn’t be.

Let’s walk through everything you need to know about Canada’s first-time home buyer incentives in 2025, including what’s available federally, provincially, and even municipally.

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Quick Take: Why These Programs Matter

• First-time home buyer programs can reduce your upfront and long-term costs.
• Some programs help with your down payment; others reimburse you later.
• While federal programs are consistent across Canada, land transfer tax rebates vary by province—and in Toronto’s case, by municipality too.

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First-Time Home Buyer Incentives at a Glance

Here’s a simple breakdown of the four most popular first-time buyer programs available to Canadians right now:

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1. RRSP Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) lets you pull up to $60,000 from your RRSP tax-free to buy or build a home (that’s $120,000 for couples!). You’ll need to start repaying it two years later, over a 15-year period.

Even if you’ve owned a home before, you might still qualify if you haven’t lived in one owned by you or your spouse in the last four years.

👉 Good to know: If you’re helping a relative with a disability buy or build a home, you can also use the HBP even if you aren’t a first-time buyer.

👉 Read the Full HBP Guide Here

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2. First-Time Home Buyers’ Tax Credit (HBTC)

The HBTC is a non-refundable tax credit that puts up to $1,500 back in your pocket when you buy your first home. You’ll need to claim it on your tax return in the year you make the purchase.

It’s designed to help offset closing costs, like lawyer fees, land transfer tax, or home inspections.

👉 Tip: Don’t forget to actually apply for this at tax time—it’s not automatic!

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3. GST/HST New Housing Rebate (NHR)

Buying a newly built home or custom building your own? Then you’ve likely paid GST or HST on top of the price.

The New Housing Rebate lets you get some of that tax back—how much depends on your province and whether you paid tax on the land as well.

For example, in Ontario, you can claim:

• Up to $24,000 back if you paid HST on both home and land
• Up to $16,080 if you didn’t pay HST on the land

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4. First-Time Home Buyer Land Transfer Tax Rebates

This is the big one—land transfer taxes (also called welcome taxes or property transfer taxes) can be thousands of dollars depending on where you live.

Thankfully, some provinces—and in Toronto’s case, the city itself—offer rebates for first-time buyers.

Let’s break them down province by province:

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🗺️ Land Transfer Tax Rebates by Region

Region	Maximum Refund	Home Value Restrictions
Ontario	$4,000	$368,000 minimum
Toronto (municipal)	$4,475	$400,000 maximum
British Columbia	$8,000	$500,000 maximum
Prince Edward Island	$2,000	$200,000 maximum

Note: Even if your home exceeds the max value, you may still qualify for a partial rebate. Always check your local rules.

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📍 Ontario Land Transfer Tax Refund

If you’re buying in Ontario, here’s how you qualify:

• Must be 18+
• Must be a Canadian citizen or permanent resident
• Must not have owned a home anywhere in the world
• Your spouse must also be a first-time buyer
• Must move into the home within 9 months
• Apply within 18 months of purchase

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🏙️ Toronto Municipal Rebate (On Top of Ontario’s!)

Live in Toronto? You may be eligible for both the provincial and municipal rebates—saving you up to $8,475 in total.

The eligibility criteria mirror Ontario’s rules, but the rebate applies to the municipal portion of the land transfer tax.

👉 Tip: Your lawyer will typically claim these rebates for you at closing—but double-check that they do!

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🌲 British Columbia Property Transfer Tax Refund

BC’s rebate offers up to $8,000 for first-time home buyers.

To qualify, you must:

• Be a Canadian citizen or permanent resident
• Have lived in BC for 12 consecutive months, or filed 2 BC tax returns in the last 6 years
• Have never owned a principal residence
• Not have received the refund previously

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🏡 Prince Edward Island Transfer Tax Exemption

PEI keeps it small but mighty—first-time home buyers here can save up to $2,000.

Eligibility includes:

• Being 18+
• Canadian citizenship or PR
• 6 months of PEI residency, or 2 tax returns filed as a PEI resident
• Never owned a principal residence before
• Apply before or soon after closing

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❌ What About Quebec?

Unfortunately, Quebec does not offer any land transfer tax rebates for first-time buyers at the moment. You’ll have to pay the full tax.

Still, if you’re buying in Montreal, look into the Home Ownership Program, which provides rebates based on family size, home price, and location—especially for new builds.

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💡 Bonus Tip: Use Your FHSA

Don’t forget about the Tax-Free First Home Savings Account (FHSA). It lets you save up to $40,000 tax-free toward your first home.

• You can contribute up to $8,000 per year
• Withdrawals are tax-free when used for a home
• Unused funds can be transferred to your RRSP or RRIF

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📌 Final Thoughts: Stack Your Rebates, Maximize Your Savings

Buying your first home doesn’t come cheap—but it helps to know that there’s real support available. And in most cases, you can stack these programs for maximum benefit. For example:

• Use your RRSP HBP + FHSA for the down payment
• Claim your land transfer tax rebate at closing
• Apply for the HBTC at tax time
• File your GST/HST housing rebate if applicable

That’s thousands of dollars back in your pocket.

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👉 Real Talk: Don’t Leave Money on the Table

Even if the paperwork feels intimidating, it’s worth applying for every program you qualify for. And remember—these programs can change, so make sure you’re checking the latest details, especially during budget seasons.

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Need Help? Speak to a Mortgage Expert

Still unsure which programs you qualify for? Chat with a mortgage expert who can help walk you through eligibility, paperwork, and how to apply these savings to your unique situation.