Buying your first home comes with a lot of unknowns, but it also comes with some real financial help. Federal and provincial programs can help you save faster, keep more of your money at closing and lower your taxes. Here’s what’s available in 2026 and how much each one is worth.
Quick summary
| Program | Where | What it’s worth |
|---|---|---|
| First Home Savings Account (FHSA) | Federal | Save up to $40,000 tax-free |
| Home Buyers’ Plan (HBP) | Federal | Borrow up to $60,000 from your RRSP |
| First-Time Home Buyers’ Tax Credit | Federal | Up to $1,500 off your taxes |
| First-Time Home Buyers’ GST Rebate | Federal | Up to $50,000 on a new home |
| Property Transfer Tax exemption | BC | Up to $8,000 at closing |
| No land transfer tax | Alberta | Only small registration fees |
Federal programs
First Home Savings Account (FHSA)
The FHSA lets you contribute up to $8,000 a year, to a lifetime limit of $40,000. Your contributions are tax-deductible like an RRSP, and withdrawals for a qualifying first home are tax-free like a TFSA. You never have to pay the money back. Unused room carries forward one year, up to $8,000. Learn more on the Government of Canada website.
Home Buyers’ Plan (HBP)
The HBP lets first-time buyers withdraw up to $60,000 from their RRSP, tax-free, toward a home. If you’re buying with a spouse or partner, you can each withdraw up to $60,000. Unlike the FHSA, this is a loan to yourself: you repay it to your RRSP over up to 15 years. RRSP contributions need to sit in the account for at least 90 days before they can be withdrawn under the plan. See the HBP page.
You can use the FHSA and HBP together on the same purchase.
First-Time Home Buyers’ Tax Credit
In the year you buy, you can claim $10,000 on Line 31270 of your tax return, which reduces your federal tax by up to $1,500. Couples can split the claim, but the combined total can’t exceed $10,000. It’s non-refundable, so it reduces tax you owe but won’t create a refund on its own.
First-Time Home Buyers’ GST Rebate (new homes)
If you’re buying a newly built home, you may be able to get back the 5% GST. For new homes priced up to $1 million, the rebate covers the full GST, to a maximum of $50,000. Between $1 million and $1.5 million, the rebate shrinks on a sliding scale, and it no longer applies above $1.5 million. Resale homes don’t qualify. Generally, it applies to purchase agreements signed on or after May 27, 2025.
30-year amortization
First-time buyers can choose a 30-year amortization on an insured mortgage (less than 20% down). This lowers your monthly payment, though you’ll pay more interest over time and a slightly higher insurance premium. I can show you both options side by side.
Provincial programs
British Columbia
BC’s First-Time Home Buyers’ Program exempts you from property transfer tax on the first $500,000 of your purchase price, as long as the home is worth $835,000 or less. A partial exemption applies between $835,000 and $860,000. That’s a savings of up to $8,000.
For example, on a $650,000 home, property transfer tax would normally be $11,000. With the exemption, you’d pay $3,000.
To qualify, you generally need to be a Canadian citizen or permanent resident, have lived in BC for at least 12 months before buying (or filed two income tax returns as a BC resident in the last six years), and never have owned a principal residence anywhere in the world.
Buying a newly built home? BC also has a separate newly built home exemption, which removes property transfer tax entirely on qualifying new homes up to $1.1 million, with a partial exemption up to $1.15 million. You don’t need to be a first-time buyer for this one, but you can’t combine it with the first-time buyer exemption on the same purchase.
Alberta
Alberta doesn’t charge a land transfer tax. Instead, you pay two Land Titles registration fees: one to transfer the title and one to register your mortgage. Each is $50 plus $5 for every $5,000 of value. On a $500,000 home with a $400,000 mortgage, that’s about $1,000 total. There’s no first-time buyer rebate on these fees, but they’re among the lowest closing costs in Canada.
I compare BC and Alberta closing costs in more detail in my closing costs guide.
How a broker helps
Programs are only one piece. The real value comes from lining them up with your down payment, your pre-approval and the right mortgage, so each piece works with the others. For example, timing your FHSA and HBP withdrawals, choosing a price that keeps you inside an exemption, or deciding whether a 30-year amortization makes sense. I’ll help you work through all of it. A good place to start is my guide on what a pre-approval is.
Frequently asked questions
Who counts as a first-time home buyer in Canada?
For most federal programs, you’re a first-time home buyer if you haven’t lived in a home that you or your spouse owned in the current year or the previous four years. BC’s property transfer tax exemption is stricter and requires that you’ve never owned a principal residence anywhere.
How much is the First-Time Home Buyers’ Tax Credit worth?
The First-Time Home Buyers’ Tax Credit is worth up to $1,500. You claim $10,000 on Line 31270 of your tax return in the year you buy.
Do first-time buyers pay property transfer tax in BC?
Eligible first-time buyers in BC pay no property transfer tax on the first $500,000 of a home priced at $835,000 or less, saving up to $8,000. A partial exemption applies up to $860,000.
Is there a land transfer tax in Alberta?
No. Alberta does not charge a land transfer tax. Buyers pay Land Titles registration fees of $50 plus $5 per $5,000 of value for both the title transfer and the mortgage.
Can first-time buyers get the GST back on a new home?
Yes. Eligible first-time buyers can receive a full GST rebate of up to $50,000 on new homes priced up to $1 million, with a partial rebate on homes up to $1.5 million.
Next step
Every situation is a little different. If you’d like to talk through yours, book a consultation or read more about my first-time homebuyer mortgage service.
This guide is general information, not financial or legal advice. Rules, programs and rates change, so please confirm current details with me or the official sources linked above.