First-Time Home Buyer Programs in Canada : A Complete 2025 Guide

Buying your first home in Canada can be exciting, overwhelming—and expensive. But the good news is: you’re not expected to do it alone. Whether you need help covering the down payment, reducing your closing costs, or getting some tax relief, there are a number of programs designed specifically to support first-time homebuyers like you.

In this guide, we’ll walk you through the major federal and provincial incentives available in 2025, break down how they work, who qualifies, and how much you can actually save. If you’re a first-time buyer in Ontario, BC, PEI, or even Toronto, you might be eligible for multiple overlapping rebates and exemptions. Let’s help you claim every dollar you deserve.

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Quick Take: What Are First-Time Buyer Programs?

First-time home buyer programs are government initiatives that offer financial relief to eligible buyers, typically in the form of tax credits, rebates, or partial refunds. Some help reduce your closing costs, others assist with your down payment, and a few put cash back in your pocket after you move in.

Most of these programs are offered either federally (like the Home Buyers’ Plan and HBTC) or at the provincial level, such as land transfer tax refunds in Ontario or BC. In Toronto, a separate municipal refund also applies.

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Four Major First-Time Buyer Programs You Need to Know

If you’re buying your first property, these four programs are your core money-savers. Let’s explore what they offer, how to qualify, and how much they can help.

1. RRSP Home Buyers’ Plan (HBP)

The HBP is a federal program that lets you borrow from yourself—up to $60,000 per person, or $120,000 for a couple—from your RRSP to buy your first home. This withdrawal is tax-free, but must be paid back within 15 years.

You’re eligible if neither you nor your spouse/common-law partner have owned and lived in a home in the last four years. The only exception? If you have a disability or you’re buying for a related disabled family member, the four-year rule doesn’t apply.

This is a great way to boost your down payment without taking on more debt.

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

To help offset closing costs like legal fees and land transfer tax, the federal government lets you claim the HBTC. It gives you a $10,000 tax credit, which results in a rebate of up to $1,500.

To claim it, you must file the credit in the same year you purchase the property. It’s available for any first-time home purchase across Canada—no regional restrictions.

3. Land Transfer Tax Refund (LTTR)

Land transfer taxes can eat up thousands of dollars on closing day. Thankfully, some provinces—and even cities like Toronto—offer a full or partial refund for first-time buyers.

We’ll break down the full rebate chart for Ontario, BC, PEI, and Toronto in the next section.

4. GST/HST New Housing Rebate (NHR)

If you’re buying a newly built home or condo, part of the GST or HST you pay may be refundable through the New Housing Rebate.

The rebate varies by province, but the savings can be significant. For example, in Ontario, if you paid HST on the purchase of both your home and the land, you could claim up to $24,000. But if you only paid HST on the structure, the maximum rebate would be $16,080.

The NHR can also be claimed by those who build their own home or do major renovations.

First-Time Buyer Incentives by Province (and City)

While federal programs like the HBP and HBTC are available across Canada, the Land Transfer Tax Refunds vary by province—and in some cases, even by municipality.

Let’s take a closer look at what’s available for first-time buyers in Ontario, Toronto, BC, and PEI. These rebates can reduce thousands from your upfront costs, especially in high-demand markets.

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Ontario Land Transfer Tax Refund

In Ontario, first-time homebuyers can get up to $4,000 refunded on the provincial land transfer tax. If you’re buying a home for $368,000 or less, this rebate could cover the entire tax amount.

To qualify:

• You must be at least 18 years old
• You (and your spouse, if applicable) must never have owned property anywhere in the world
• The home must be your principal residence within 9 months of purchase
• You must be a Canadian citizen or permanent resident (or become one within 18 months)

This refund is typically applied at the time of closing, which means you won’t need to pay it upfront and wait to claim it later—your lawyer usually handles it.

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Toronto Municipal Land Transfer Tax Rebate

On top of the Ontario rebate, Toronto homebuyers may be eligible for an additional refund of up to $4,475 to cover the municipal land transfer tax.

The eligibility criteria are nearly identical to Ontario’s:

• First-time buyer (globally)
• At least 18 years of age
• Principal residence within 9 months
• Canadian citizenship or permanent residency

Combined with the Ontario refund, Toronto buyers could receive over $8,000 back—hugely helpful in a city with some of Canada’s highest property prices.

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BC Property Transfer Tax Exemption

British Columbia offers a generous rebate of up to $8,000 on the Property Transfer Tax for eligible first-time buyers. Homes must be priced at $500,000 or less to receive the full exemption, and partial refunds are available up to $525,000.

To qualify in BC:

• You must be a Canadian citizen or permanent resident
• You must have lived in BC for 12 months or filed two income tax returns in the last 6 years as a BC resident
• You’ve never owned a principal residence
• You’ve never claimed this exemption before

If you meet these criteria and your home qualifies, the BC government will fully refund the property transfer tax, which can be worth thousands.

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Prince Edward Island Property Tax Exemption

On PEI, first-time buyers may claim up to $2,000 in property transfer tax exemption if they meet the eligibility criteria.

You must:

• Be a Canadian citizen or permanent resident
• Be at least 18 years old
• Have lived in PEI for six consecutive months before the purchase or filed 2 tax returns as a resident in the last 6 years
• Never have owned or had interest in a principal residence
• Never claimed this exemption before

The home must also be your principal residence to be eligible.

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What About Quebec?

Unfortunately, Quebec does not currently offer any first-time home buyer land transfer tax exemptions. Buyers in Montreal, Quebec City, and elsewhere in the province must pay the full welcome tax with no provincial rebate.

That said, Quebec residents are still eligible for the federal programs like the HBP, HBTC, and the GST/HST New Housing Rebate (if purchasing new construction).

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How to Apply for Each Program

The good news? You don’t need to apply for everything all at once. Each first-time buyer incentive has its own timeline and method of application, and your real estate lawyer, tax preparer, or mortgage broker can help you through most of them.

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RRSP Home Buyers’ Plan (HBP)

You’ll need to fill out CRA’s Form T1036 to withdraw your funds. Your financial institution handles the withdrawal, and there are no taxes withheld at the time—as long as the paperwork is filed properly.

Remember, you’ll need to start repaying your RRSP starting in the second year after the withdrawal. It’s repaid over 15 years through your tax return.

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HBTC (Home Buyers’ Tax Credit)

You apply for this rebate when filing your personal income tax return in the year you bought your home. Use Line 31270 on your return and claim the full $10,000 amount (it translates to a $1,500 refund).

If you’re buying with a partner, you can split the credit between both of you—but the total claim must not exceed $10,000.

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Land Transfer Tax Refunds

For Ontario and Toronto, your real estate lawyer will usually apply for the rebate when they register your property on closing day. It reduces the amount of tax you need to pay upfront.

If you didn’t claim the refund at closing, you can apply later through the Ontario Ministry of Finance or the City of Toronto within 18 months of registration.

In BC or PEI, the refund is applied at the time of purchase if you qualify—but you must ensure all documents are correctly submitted during registration.

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GST/HST New Housing Rebate (NHR)

For newly constructed homes, you or your lawyer will need to submit a separate GST/HST Rebate application form after closing. In Ontario, you have two years from the date of occupancy or title transfer to apply.

If you bought a new home from a builder, they may have already claimed the rebate on your behalf and deducted it from the purchase price. Always double-check your Agreement of Purchase and Sale.

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Final Thoughts: Which First-Time Buyer Program is Right for You?

Here’s the truth: you don’t have to choose just one. Most first-time home buyers in Canada are eligible for multiple programs at once—and stacking them could easily save you $10,000 to $30,000 between tax refunds, rebates, and RRSP flexibility.

For example, if you’re buying a $500K home in Toronto, you might:

• Use $60K from your RRSP with the HBP
• Claim $1,500 from the HBTC
• Get $8,475 back from Ontario + Toronto land transfer tax rebates
• Receive up to $24,000 in GST/HST housing rebates if buying new construction

That’s real money—and it could make the difference between buying now or having to wait another year.

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