A Complete Guide to First-Time Homebuyer Grants in Canada (2025)

Buying Your First Home? Here’s Some Financial Relief

Let’s be honest: buying your first home in Canada isn’t easy. Between saving for a down payment, navigating high mortgage rates, and paying for closing costs, it can feel like a mountain of financial pressure. But here’s the good news — you’re not in it alone.

The Canadian government (federal and provincial) offers a variety of grants, rebates, and programs specifically designed to make homeownership more affordable for first-time buyers. Whether you need help with your tax bill, want to pull from your RRSP, or are eligible for a land transfer tax refund, this guide will walk you through it all.

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First-Time Home Buyers’ Tax Credit (HBTC)

Think of this as a “welcome gift” from the federal government. If you’re buying your first home and you qualify, you can claim up to $10,000 on your tax return. That translates to a $1,500 tax rebate.

It’s meant to help cover some of your closing costs — things like legal fees, home inspections, or moving expenses.

📌 Pro Tip: You don’t get this money up front. It comes back at tax time — but every dollar helps when you’re budgeting.

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Land Transfer Tax Refund (LTTR)

One of the biggest surprise costs at closing? Land transfer tax. It’s a fee charged by provinces (and municipalities like Toronto) when you buy property. But if you’re a first-time buyer, you may get some or all of it refunded.

Ontario, British Columbia, and Prince Edward Island all offer LTTR refunds — and Toronto gives a municipal rebate on top.

✅ Are You Eligible?

It depends on where you’re buying, but here are some general rules:

• You must be 18+ and a Canadian citizen or permanent resident
• You must not have owned a home before
• The home must be your primary residence
• You usually need to apply within 18 months of the purchase

Region	Max Refund	Max Home Price
Ontario	$4,000	$368,000
Toronto (extra)	$4,475	$400,000
British Columbia	$8,000	$500,000
Prince Edward Island	$2,000	$200,000

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RRSP Home Buyers’ Plan (HBP)

This is one of the most powerful tools for Canadian first-time buyers.

The RRSP Home Buyers’ Plan lets you withdraw up to $60,000 tax-free from your RRSP to buy your first home. If you’re buying with a partner, that’s up to $120,000 between the two of you.

It’s a loan to yourself — so you have to repay it over 15 years.

🏡 Who Can Use the HBP?

• You’re considered a first-time homebuyer (i.e. haven’t owned a home in the past 4 years)
• You must have a written agreement to buy or build a qualifying home
• You must intend to live in the home as your primary residence
• You must be a Canadian resident when you withdraw the funds

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GST/HST New Housing Rebate (NHR)

If you’re buying a newly built home, building your own home, or significantly renovating, you might be eligible for a rebate of the GST or federal portion of HST.

For example, in Ontario, you can get back up to $24,000 depending on your situation.

Common Scenarios That Qualify:

• Buying a new home directly from a builder
• Owner-built homes
• Substantial renovations (major structural changes)

You must usually apply within 2 years of closing, and the home must be your primary place of residence.

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Home Adaptations for Seniors’ Independence (HASI)

This is a CMHC-run program aimed at seniors and Indigenous communities. It helps cover the cost of home adaptations that allow seniors to live safely and independently.

If eligible, you can get a forgivable loan up to $20,000 — and even more if the property is on a northern or remote reserve.

Adaptations include:

• Grab bars and handrails
• Walk-in tubs or showers
• Lowered countertops and easy-to-reach cabinets

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Frequently Asked Questions (FAQ)

How do I know if I qualify for a first-time buyer grant?

Each program has different eligibility rules. In general, if you’ve never owned a home, or haven’t owned one in the last 4 years, you’ll likely qualify. Always check the federal or provincial program websites for specifics.

Do I need to repay these grants?

Most do not require repayment. The exception is the Home Buyers’ Plan (HBP) — which is a loan to yourself and must be repaid to your RRSP within 15 years.

Can I combine these programs?

Absolutely! In many cases, buyers use multiple programs — like claiming the HBTC, getting an LTTR refund, and using the HBP all at once. That’s thousands of dollars in savings.

What if I’m not a “first-time” buyer?

Some programs allow exceptions — like if you’re helping a disabled relative purchase a home through the HBP, or if you haven’t owned a home in a certain number of years. Always check eligibility.

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Final Thoughts

Buying your first home can feel like a financial marathon, but you’re not running it alone. Thanks to federal and provincial programs, thousands of dollars in grants and rebates are available to help you cover everything from land transfer taxes to closing costs to RRSP withdrawals.

The key? Do your homework early. Check which programs apply to your province, what documentation you’ll need, and how to apply in time. And don’t be afraid to ask for help — this is a big step, and the right support can save you both money and stress.

To know the Policy of Bank of Canada for every Homebuyer click here

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