Start with the option that is most useful to you.
Canada has several federal programs, savings tools and tax rebates that can reduce some of the financial pressure involved in buying a home. The right option depends on factors such as whether you are a first-time buyer, whether you have RRSP savings and whether the property is newly built.
These programs do not mean the federal government pays for your home or guarantees that you will qualify for a mortgage. Instead, they can help in different ways: building a down payment, accessing existing retirement savings, reducing taxes or recovering part of the GST/HST paid on an eligible home.
The 5 federal home buying options at a glance
First Home Savings Account (FHSA)
The FHSA combines features of an RRSP and a TFSA for eligible first-time home buyers. Contributions can generally be deducted from taxable income, while a qualifying withdrawal used to buy or build a first home is not taxable.
To open an FHSA you must meet the applicable age and Canadian residency requirements and meet the FHSA definition of a first-time home buyer.
Under that definition, you generally must not have lived in a qualifying home that you owned or jointly owned as your principal residence during the current calendar year or the previous four calendar years. Rules involving a spouse or common-law partner can also matter.
Home Buyers’ Plan (HBP)
The Home Buyers’ Plan allows an eligible person to withdraw money from their RRSP to buy or build a qualifying home without treating the qualifying withdrawal as regular taxable RRSP income at the time of withdrawal.
One particularly useful rule is that an eligible buyer may use the Home Buyers’ Plan and make a qualifying FHSA withdrawal for the same qualifying home, provided the requirements for both are met.
For participants making their first HBP withdrawal from January 1, 2026 through December 31, 2028, temporary repayment relief delays the start of the 15-year repayment period. A first withdrawal made in 2026 is scheduled to begin repayment in 2031 under the current rule.
Home Buyers’ Amount
The Home Buyers’ Amount is a federal non-refundable tax credit for qualifying home purchases.
An eligible buyer can currently claim up to $10,000 as the Home Buyers’ Amount on their federal income tax return. If more than one eligible person acquires the same property, the amount may be divided between them, but the combined claim cannot exceed the maximum allowed for that home.
The Home Buyers’ Amount should not be confused with a cash grant paid toward the down payment. It is claimed through the income tax system after an eligible acquisition.
First-Time Home Buyers’ GST/HST Rebate
This newer rebate is especially important for Canadians purchasing a newly built or substantially renovated first home. Applications are open in 2026.
For an eligible first-time buyer, the rebate can recover up to 100% of the GST or federal part of the HST on a qualifying new home, up to a maximum federal rebate of $50,000.
The full rebate can apply to qualifying homes valued at $1 million or less. It is gradually reduced for homes between $1 million and $1.5 million, and no federal first-time buyer rebate is available under this program at $1.5 million or above.
GST/HST New Housing Rebate
Canada also has an existing GST/HST New Housing Rebate that is separate from the newer first-time buyer rebate.
Depending on the situation, an individual who purchases a new or substantially renovated home from a builder, builds a home or substantially renovates an existing home may recover part of the GST or federal portion of the HST.
Under the standard federal new housing rebate calculation, the rebate can generally equal 36% of the GST or federal part of the HST paid, up to a maximum of $6,300.
The standard federal rebate is gradually reduced above the applicable $350,000 threshold and is generally unavailable when the relevant purchase price or fair market value reaches $450,000.
The newer First-Time Home Buyers’ GST/HST Rebate can operate as a top-up to the existing new housing rebate when the requirements for both are satisfied.
How the 5 programs differ
| Program | Main purpose | Key figure | When it helps |
|---|---|---|---|
| FHSA | Save toward a first home with tax advantages | $8,000 annual room / $40,000 lifetime limit | Before buying |
| Home Buyers’ Plan | Access eligible RRSP savings | Up to $60,000 | When arranging purchase funds |
| Home Buyers’ Amount | Federal non-refundable tax credit | Claim amount up to $10,000 | On your tax return |
| First-Time Buyer GST/HST Rebate | Reduce federal GST/HST on a qualifying first home | Up to $50,000 | New or substantially renovated first homes |
| GST/HST New Housing Rebate | Recover some GST/HST on eligible new housing | Up to $6,300 federally under the standard calculation | Eligible new or substantially renovated homes |
Can you use more than one program?
In some situations, yes. These options do not all perform the same function, so being eligible for one does not automatically prevent you from using another.
- An eligible buyer can use an FHSA qualifying withdrawal and the Home Buyers’ Plan for the same qualifying property.
- A qualifying buyer may later claim the Home Buyers’ Amount through their income tax return.
- A qualifying new home may be relevant to GST/HST rebate rules in addition to savings or RRSP programs.
- Each program has its own definition, deadlines and eligibility conditions, so qualifying for one does not guarantee the others.
Which program may be most relevant to you?
âFirst-time home buyerâ does not always mean exactly the same thing
This detail is easy to miss. Different federal programs contain their own eligibility wording and timing rules.
For several programs, being a first-time buyer does not necessarily mean that you have never owned any property at any point in your life. A look-back period involving the current year and previous calendar years may be used.
Your spouse or common-law partner’s home ownership can also matter under some rules. Always check the definition that belongs to the specific program you want to use.
What about provincial and territorial programs?
The five options above are federal programs and incentives. Provinces and territories can have additional assistance, tax credits, land-transfer-tax rebates or other housing measures.
Because those programs depend on where the property is located, a buyer in Ontario may have different additional options from a buyer in British Columbia, Alberta, Quebec or another province or territory.
A practical order for checking your options
- Confirm whether you meet the first-time buyer definition for the program you are considering.
- Check your available FHSA contribution room and existing savings.
- If you have an RRSP, check whether an HBP withdrawal fits your purchase and future repayment plan.
- If buying a new home, review both GST/HST rebate programs before assuming which one applies.
- After the purchase, check whether the Home Buyers’ Amount can be claimed on your income tax return.
- Finally, check your province or territory for additional local incentives.
There is no single Canadian program that fits every home buyer. The strongest combination depends on whether you are still saving, already have RRSP funds, are buying your first home and whether the property is new or substantially renovated.
Choose the next part of the guide you want to review.
Government of Canada â Buying a home: programs and incentives
Canada Revenue Agency â First Home Savings Account (FHSA)
Canada Revenue Agency â Home Buyers’ Plan (HBP)
Canada Revenue Agency â Home Buyers’ Amount, line 31270
Canada Revenue Agency â First-Time Home Buyers’ GST/HST Rebate
Canada Revenue Agency â GST/HST New Housing Rebate
Program limits, tax rules and eligibility requirements can change. Buyers should confirm the current official requirements before making financial or tax decisions.
DR Ana Popescu is passionate about writing and providing readers with accurate information. She has experience writing articles about economics, financial planning, and personal loans, offering clear and easy-to-understand explanations. Her goal is to help readers make better decisions through useful and well-researched information.