First-time home buyer programs in Canada in 2026 let buyers save up to $40,000 in a tax-free First Home Savings Account, withdraw $60,000 from RRSPs under the Home Buyers’ Plan, get up to $50,000 of GST back on a new home and claim a $10,000 home buyers’ amount, the Canada Revenue Agency says.
Updated Oct. 22, 2026
The federal programs are run by the CRA, which posts the rules on its FHSA, Home Buyers’ Plan and first-time home buyers’ GST/HST rebate pages. Provinces and some cities add land transfer tax rebates. Each program uses its own definition of a first-time buyer, so check each one.
Key facts
| Program | 2026 limit | Main condition |
|---|---|---|
| First Home Savings Account (FHSA) | $8,000 a year, $40,000 lifetime | Canadian resident, 18 to 71, first-time buyer |
| Home Buyers’ Plan (HBP) | $60,000 RRSP withdrawal per person | Repay over 15 years |
| First-time home buyers’ GST/HST rebate | Up to $50,000 | New or substantially renovated home under $1.5 million |
| Home buyers’ amount (line 31270) | $10,000 claim, worth $1,400 in federal tax for 2026 | Qualifying home in Canada |
| Ontario land transfer tax refund | Up to $4,000 | Never owned a home anywhere |
| Toronto municipal land transfer tax rebate | Up to $4,475 | Never owned a home anywhere |
| B.C. first time home buyers’ program | No tax on first $500,000 | Home worth $835,000 or less for full exemption |
How much can you put in an FHSA in 2026?
Your participation room is $8,000 in the year you open your first FHSA, and the CRA’s contribution rules cap lifetime contributions at $40,000. Unused room carries forward, but no more than $8,000 a year, so the most you can put in during a single year is $16,000. Room starts only when you open an account.
Contributions are generally tax-deductible, and qualifying withdrawals to buy a first home are tax-free. To open an FHSA, you must be a resident of Canada, at least 18 (19 in provinces where that is the age of majority) and no older than 71 on Dec. 31 of that year. You must not have lived in a home you owned, or jointly owned, as your principal residence in the current calendar year or the previous four. A similar test applies to a home owned by a spouse or common-law partner.
The account must be closed by Dec. 31 of the year of the earliest of three events: the 15th anniversary of opening your first FHSA, your 71st birthday, or the year after your first qualifying withdrawal. Our explainer on the 2027 RRSP limit and TFSA limit covers the other registered accounts.
How does the Home Buyers’ Plan work in 2026?
The CRA says the Home Buyers’ Plan withdrawal limit is currently $60,000, taken from your RRSPs to buy or build a qualifying home. You can also make a qualifying FHSA withdrawal for the same home if you meet the conditions for both. Couples who each qualify can each withdraw up to the limit.
You have up to 15 years to repay the money to your RRSP. Normally repayment starts in the second year after the withdrawal, but the CRA says temporary relief pushes the start to the fifth year after the withdrawal for withdrawals made from Jan. 1, 2022, to Dec. 31, 2025, and for first withdrawals made from Jan. 1, 2026, to Dec. 31, 2028.
| Year of first HBP withdrawal | First repayment year |
|---|---|
| 2025 | 2030 |
| 2026 | 2031 |
| 2027 | 2032 |
| 2028 | 2033 |
Each year you must repay at least your remaining balance divided by the years left. Any shortfall is added to your income as RRSP income on line 12900 of your return. Withdrawals are requested with Form T1036.
Is the first-time home buyer GST rebate in effect?
Yes. Bill C-4, the Making Life More Affordable for Canadians Act, received royal assent on March 12, 2026, Finance Canada said, and the CRA lists the rebate’s status as applications open. It refunds 100 per cent of the GST, or the federal part of the HST, on a new home valued up to $1 million, to a maximum of $50,000. The rebate shrinks for homes between $1 million and $1.5 million and disappears at $1.5 million.
| New home value | 5% GST or federal HST | Maximum rebate |
|---|---|---|
| $600,000 | $30,000 | $30,000 |
| $1,000,000 | $50,000 | $50,000 |
| $1,250,000 | $62,500 | $25,000 |
| $1,500,000 or more | $75,000 or more | $0 |
The CRA’s eligibility page says you must be at least 18, a Canadian citizen or permanent resident, and not have lived as your primary residence in a home owned by you or your spouse or common-law partner in the calendar year or the previous four. Neither of you can have received the rebate before.
For a home bought from a builder, the agreement of purchase and sale must be signed on or after March 20, 2025, and before 2031, construction must begin before 2031 and be substantially completed before 2036, and ownership must transfer before 2036. You must be the first person to live in the home, as your primary residence. Builders can credit the rebate at closing; otherwise buyers file Form GST190, or Form GST191 for owner-built homes, generally within two years.
In Ontario, the CRA says an Ontario first-time home buyers’ rebate covers up to $80,000 of the eight per cent provincial part of the HST and follows the federal eligibility rules. A temporary Ontario enhanced new housing rebate covers agreements signed from April 1, 2026, to March 31, 2027. All provincial rebates combined cannot exceed the lesser of $80,000 and the provincial HST payable. Our sales tax rates by province guide lists the HST and GST in each province.
What is the home buyers’ tax credit worth?
The home buyers’ amount lets you claim $10,000 on line 31270 of your return for a qualifying home bought in the tax year. It is a non-refundable credit calculated at the lowest federal rate, which is 14 per cent for 2026, so it can cut federal tax by up to $1,400. It applies to resale and new homes.
You generally must not have lived in a home owned by you or your spouse or common-law partner in the year of purchase or the four years before, and you must plan to move in within a year. People eligible for the disability tax credit, or buying for a related person who is, do not need to be first-time buyers. Couples who both qualify can split the claim, but the total cannot exceed $10,000.
Which provinces offer land transfer tax rebates for first-time buyers?
| Province or city | Rebate | Key rules |
|---|---|---|
| Ontario | Refund up to $4,000; no tax on the first $368,000 | Never owned a home anywhere; move in within nine months; apply within 18 months |
| Toronto | Municipal rebate up to $4,475, on top of Ontario’s | Citizen or permanent resident; never owned a home anywhere; move in within nine months |
| British Columbia | No property transfer tax on the first $500,000 for homes worth $835,000 or less; partial up to $860,000 | Lived in B.C. a year or filed two B.C. returns in six years; move in within 92 days |
| Prince Edward Island | Exemption from real property transfer tax | First-time buyer who files a declaration and lives in the home |
Ontario’s first-time homebuyer refund requires buyers to be at least 18 and Canadian citizens or permanent residents, and no refund is available if a spouse owned a home while with you. Toronto’s MLTT rebate must be claimed within 18 months. B.C.’s first time home buyers’ program is worth up to $8,000 at the province’s rates of one per cent on the first $200,000 and two per cent above that. Prince Edward Island’s exemption is set out in its Real Property Transfer Tax Act.
How much could a first-time buyer save? A worked example
Take two first-time buyers in Toronto who each opened an FHSA in 2023 and put in $8,000 a year through 2026, for $32,000 each before investment growth. Each also withdraws $35,000 from an RRSP under the Home Buyers’ Plan. In October 2026 they sign to buy a newly built condo from a builder for $700,000 before tax. Market conditions in the city are tracked in our Toronto housing report.
| Item | Amount |
|---|---|
| FHSA savings, two people | $64,000 toward the down payment |
| Home Buyers’ Plan, two people | $70,000 toward the down payment |
| Federal first-time buyer GST rebate (5% of $700,000) | $35,000 |
| Ontario rebates on the 8% provincial HST, if eligible | Up to $56,000 |
| Ontario land transfer tax of $10,475, less refund | $4,000 saved |
| Toronto land transfer tax of $10,475, less rebate | $4,475 saved |
| Home buyers’ amount | $1,400 off federal tax |
In this example, $134,000 comes from tax-sheltered savings, and the rebates and credit total up to $100,875. The FHSA deductions also cut their income tax in the years they contributed. The land transfer tax figures use Ontario’s and Toronto’s rates of 0.5 per cent up to $55,000, one per cent to $250,000, 1.5 per cent to $400,000 and two per cent above that. Actual figures depend on the final price, whether the builder credits the rebates in the price and each buyer’s eligibility, so confirm with a lawyer or the CRA before signing.
Frequently asked questions
How much can I put in an FHSA in 2026?
You can contribute $8,000 a year, plus up to $8,000 of unused room carried forward from the year before, to a lifetime maximum of $40,000. Room starts only once you open the account.
Can I use the FHSA and the Home Buyers’ Plan together?
Yes. The CRA says you can make a qualifying FHSA withdrawal and an HBP withdrawal for the same home, as long as you meet the conditions of both at the time of each withdrawal.
How much can I withdraw under the Home Buyers’ Plan?
The current limit is $60,000 per person from RRSPs. For first withdrawals made from 2026 to 2028, repayments over 15 years start in the fifth year after the withdrawal.
Is the first-time home buyer GST rebate in effect?
Yes. Bill C-4 received royal assent on March 12, 2026, and the CRA is accepting applications. The rebate is worth up to $50,000 on new homes under $1.5 million bought under agreements signed from March 20, 2025.
Who counts as a first-time home buyer in Canada?
For the federal programs, generally someone who has not lived in a home they or their spouse or common-law partner owned in the current year or the previous four calendar years. Ontario, Toronto and B.C. require that you have never owned a home.
How much is the Ontario land transfer tax rebate for first-time buyers?
Ontario refunds up to $4,000, so no provincial land transfer tax is payable on the first $368,000. Toronto buyers can also get a municipal rebate of up to $4,475.
How much is the home buyers’ tax credit?
You claim $10,000 on line 31270, which reduces federal tax by up to $1,400 for 2026 because the credit is calculated at the lowest federal rate of 14 per cent.
Mortgage costs are the other half of affordability; see our coverage of the Bank of Canada’s rate decision and the rules changing on Jan. 1, 2027.
If you find reporting like this useful, consider supporting Canada News Media, an independent Canadian newsroom with no corporate parent.
Sources: Canada Revenue Agency, First Home Savings Account, Home Buyers’ Plan, first-time home buyers’ GST/HST rebate and line 31270; Finance Canada; Ontario Ministry of Finance, land transfer tax refunds and rates; City of Toronto, MLTT rates; Government of British Columbia, first time home buyers’ program; Government of Prince Edward Island.
Follow Canada News Media
Get the day's top Canadian stories and our two daily 60-second news videos wherever you scroll.
X Threads Facebook Instagram LinkedIn TikTok YouTube Pinterest Reddit Substack Flipboard Newsletter RSS
