First-Time Home Buyer Programs in Canada & Ontario (2025 Guide)

Ready to Buy Your First Home? Here’s How Canada and Ontario Have Your Back!

So, you’re thinking about buying your first home? Congrats! That’s a huge step and a big financial move. But don’t panic. You’re not in it alone. Canada (and Ontario specifically) has rolled out a bunch of helpful programs to make that dream home more affordable. Whether you’re worried about your down payment, taxes, or just figuring out where to start, this guide is your all-in-one roadmap.

Let’s break it all down step-by-step with a human touch, no complicated jargon.

Why First-Time Home Buyer Programs Exist

You’ve probably asked: Why does the government even care if I buy a home?

Simple—home ownership is good for the economy. When more people buy homes, they spend on renovations, furnishings, and even local businesses. But let’s face it: today’s market can feel like you’re climbing Mount Everest with flip-flops. That’s why federal and provincial governments offer tools to help level the playing field.

Federal First-Time Home Buyer Programs (2025)

These programs are available nationwide, regardless of what province you live in. They’re especially useful for people who want long-term financial stability, tax savings, and help managing upfront costs.

1. First Home Savings Account (FHSA)

Think of it as a hybrid between a TFSA and an RRSP—just for home buyers.

💡 Key Benefits:

• Contribute up to $8,000 per year, up to a $40,000 lifetime limit

• Contributions are tax-deductible

• Withdrawals (including gains) are tax-free when buying your first home

Why It’s a Game Changer:

It’s the only account in Canada that lets you save money tax-free on both ends—when you put it in and when you take it out to buy your home. No more choosing between TFSA or RRSP.

2. RRSP Home Buyers’ Plan (HBP)

Already have money in your RRSP? Good news—you can borrow from yourself.

Here’s how it works:

• Withdraw up to $60,000 from your RRSP

• You have 15 years to repay it (starting the second year after withdrawal)

• No taxes deducted at the time of withdrawal

Use this together with the FHSA to stack your savings like LEGO bricks.

3. First-Time Home Buyers’ Tax Credit (HBTC)

This one gives you a $1,500 federal tax credit at the end of the year you buy your first home.

Not flashy—but hey, that’s money you can use for legal fees, movers, or even that fancy espresso machine for your new kitchen.

4. GST/HST New Housing Rebate

If you’re buying a newly built home or doing major renovations, you could get some of the GST or HST back.

It’s a little tricky to calculate, but it could save you thousands.

5. First-Time Home Buyer Incentive (FTHBI) — Discontinued in 2024

This shared-equity mortgage with the federal government is no longer active. The program ended on March 31, 2024, and no new applications are being accepted.

If you already applied, you’re still covered. But going forward, look to the other active programs above.

Ontario-Specific Home Buyer Programs (2025)

Now let’s zoom in on Ontario, because this province goes the extra mile for new homeowners.

1. Ontario Land Transfer Tax Rebate

One of the biggest shocks for first-time buyers is the land transfer tax. But good news—Ontario gives you a break.

How much can you get?

• Up to $4,000 rebate on Ontario’s provincial land transfer tax

• If you’re buying in Toronto, you get up to $4,475 extra

That’s up to $8,475 in savings—just for being a first-time buyer!

---

2. 30-Year Amortization Option for Insured Mortgages

As of December 15, 2024, Canada now allows 30-year amortization for insured mortgages—but only for first-time buyers and only for homes priced under $1.5 million.

Why this matters:

• Longer amortization = lower monthly payments

• Ideal for buyers trying to make tight budgets work

---

3. Municipal First-Time Buyer Support (Select Cities)

Cities like Ottawa and Mississauga offer their own affordable housing initiatives, including:

• Down payment assistance

• Forgivable loans

• Deferred interest plans

Check with your local city or town hall—these local programs change frequently and are often under-used!

How to Qualify for These Programs

Every program has a few strings attached. Here’s the general checklist:

✅ You’re a first-time home buyer (never owned a home OR haven’t owned in 4+ years)
✅ You’re buying a primary residence (not a rental property)
✅ Your household income fits the program guidelines (usually under $120,000 to $150,000)
✅ You’re a Canadian resident or permanent citizen

How to Combine These Programs

Want to turbocharge your benefits? Here’s a sample strategy:

1. Open an FHSA and max out contributions.

2. Top it off with $60,000 from your RRSP (HBP).

3. Claim the $1,500 tax credit at tax time.

4. Use Ontario’s land transfer tax rebate at closing.

5. If eligible, go for a 30-year amortization to ease your mortgage load.

Stacking these programs can save you over $50,000 in combined cash flow, tax savings, and rebates.

Real-Life Example: Meet Jordan & Aisha

ordan and Aisha are a young couple buying a $750,000 townhouse in Vaughan, Ontario.

Here’s what they used:

• $16,000 in FHSA savings

• $60,000 from their RRSPs via HBP

• $1,500 HBTC tax credit

• $4,000 Ontario Land Transfer Tax rebate

• $4,475 Toronto rebate (if inside city limits)

• Chose a 30-year insured mortgage to reduce payments by ~$350/month

By stacking these programs, they made their dream home affordable—without stretching their budget to the breaking point.

Conclusion: Ready to Unlock the Door to Your First Home?

Buying your first home in Canada or Ontario doesn’t have to feel like a financial maze. With the right mix of government programs, smart planning, and expert advice, you can walk through your new front door with confidence (and maybe even some cash leftover for furniture).

Just remember: these programs change often, so talk to a licensed mortgage broker or financial advisor to make sure you’re making the most of what’s available.

FAQs

Can I use the FHSA and RRSP Home Buyers’ Plan together?

Yes! You can combine both programs to boost your down payment—just make sure you meet contribution and withdrawal rules.

What if I owned a home more than 4 years ago?

You can still qualify as a “first-time buyer” under some programs if you haven’t owned a home in the past four years.

Do I need to pay back the First Home Savings Account funds?

Nope! Withdrawals from the FHSA for a qualifying home purchase are 100% tax-free and do not require repayment.

Are these programs available for new builds and resale homes?

Most apply to both, but rebates like GST/HST and shared-equity mortgages were more focused on new builds.

Can I apply for these programs without a mortgage broker?

Yes—but a broker can help you bundle programs, find the best rates, and avoid common mistakes. It’s worth considering.