First Home Savings Account (FHSA)
Launched in April 2023, the FHSA is a registered account designed specifically for first-time home buyers. Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying first home purchase are tax-free (like a TFSA). It's effectively the best of both registered account types, in one product.
Limits: $8,000 per year, $40,000 lifetime cap. Both spouses can each have an FHSA, doubling the household total to $80,000. Qualifying: Canadian resident, 18+, first-time buyer (you or your spouse haven't owned a home in the past 4 years).
Critically, the FHSA can be combined with the RRSP Home Buyers' Plan — first-time buyers can withdraw from BOTH for the same purchase, totaling $75,000 per person ($150,000 per couple). For most first-time buyers in Canada, this is the single most powerful tool available.
RRSP Home Buyers' Plan (HBP)
The HBP lets first-time buyers withdraw up to $35,000 from their RRSP without immediate tax consequences. The withdrawal is repaid to the RRSP over 15 years; missed annual repayments become taxable income.
Qualifying: Canadian resident, 18+, first-time buyer (not owned a home in the past 4 years), and the funds must have been in your RRSP for at least 90 days before withdrawal.
Couples: both spouses can each withdraw up to $35,000, for $70,000 combined. Combined with the FHSA ($40,000 each), a couple can extract $150,000 of registered funds for a first-home purchase.
Land transfer tax rebates
Provincial governments levy land transfer tax (LTT) on most real estate transactions, with first-time buyer rebates in several provinces.
Alberta: No LTT exists, so no rebate is needed. This alone saves Alberta first-time buyers $5,000-$15,000+ vs Ontario/BC counterparts. Ontario: rebate of up to $4,000 (the LTT on a roughly $368,000 home). Toronto (additional municipal LTT): rebate of up to $4,475 on top of the provincial rebate, totaling $8,475. British Columbia: full exemption on homes under $500,000; partial exemption $500,000-$835,000. Prince Edward Island: full exemption on homes under $200,000.
Most other provinces have either no LTT or no first-time buyer rebate. The Alberta advantage here is real and worth understanding — for a $500,000 home, an Edmonton first-time buyer pays roughly $200 in registration fees, while a Toronto buyer pays $4,475 in net LTT after rebates.
First-Time Home Buyers' Tax Credit
A federal non-refundable tax credit worth $1,500 (15% of $10,000) for first-time buyers. Claimed in the year of home purchase. Applies to both new construction and existing homes.
Qualifying: same as HBP — first-time buyer who purchases an eligible home and intends to occupy it as a principal residence. The credit is small relative to other programs but worth claiming if you're eligible.
GST/HST New Housing Rebate
When you buy a newly-constructed home or substantially renovate one, you pay GST (or HST in HST provinces). The federal new housing rebate refunds a portion — up to $6,300 for the federal GST rebate alone. Some provinces offer additional provincial rebates.
Eligibility: the home must be your primary residence and built/renovated as new. Resale homes don't qualify. Most builders apply the rebate at closing rather than making you claim it after — the price you see is usually net of the rebate.
What's gone (don't be misled)
Several previously-available programs have been discontinued and may still be referenced in older guides. Don't waste time on these.
First-Time Home Buyer Incentive (FTHBI): the federal program that provided a 5-10% shared-equity loan from CMHC. Discontinued in March 2024. Existing FTHBI mortgages remain in effect; no new applications are accepted.
Energy efficiency rebates: some provincial programs (Greener Homes Loan, etc.) have been wound down or paused. Check the specific program before counting on it.
Provincial new homeowner programs: several provinces have offered (and discontinued) various rebates over the years. Always verify with the provincial government or your broker before assuming a program is active.
Putting it all together
Stack everything that applies. A typical Alberta first-time buyer couple might use: $40,000 FHSA each ($80,000 combined), $35,000 RRSP HBP each ($70,000 combined), $1,500 FTHB tax credit each ($3,000 combined), and the absence of any LTT (savings of $5,000-$15,000 vs other provinces).
Total impact: $150,000+ of tax-advantaged savings deployed, plus $5,000-$15,000 of avoided LTT — a substantial head start on a first home purchase.
Most first-time buyers don't fully optimize the available programs, often because they didn't know about all of them or didn't open accounts in time. The FHSA in particular requires planning — you can't fully fund it the day before you buy. Open the account as soon as you start thinking about home ownership, even if you're 2-3 years away.