Being a first-time home buyer is exciting! Looking through house listings, deciding on your ‘must have’ list and considering new neighbourhoods is a once-in-a-lifetime experience for first time home buyers. There are several elements that go into the process.

The good news is that there are many benefits of being a first-time home buyer in Canada.

Benefits for first-time buyers

The Canadian government supports first-time home buyers! There are three main incentive programs that you should know about before signing the papers and getting the keys to your new place.

1. The Home Buyers’ Plan (HBP)
   It’s important to save before buying your first home. There are many ways that you can do this. One of the most effective ways to save for your first house is with your Registered Retirement Savings Plan (RRSP). If you have been putting money away for years (good thinking putting a little away from each paycheque when you got your first job!) as of 2024, you can lend yourself up to $60,000 tax-free from your RRSP with the Home Buyers’ Plan (HBP). If you are buying with a partner, and you are both first-time buyers, you can get up to $120,000 to put towards your purchase. There’s a 15-year repayment period that starts two years after you withdraw the money, or if you have the funds available, you can start paying it off sooner. 
   
   This program was introduced in 1992 and has given hundred of thousands of Canadians the opportunity to increase their buying power when they first enter the real estate market. 
2. Land Transfer Rebates
   Rebates are also available for first-time home buyers.  You may be eligible to receive a partial or full land transfer tax refund. In British Columbia the land transfer tax is determined by a tax-bracket system based on the purchase price of the home and a refund is offered for properties worth $500,000 and below.
3. Tax-Free First Home Savings Account 
   An FHSA is a registered plan designed to help first-time homeowners save for a down payment. It is available to first-time home buyers that are Canadian residents between the age of majority (19 years in BC) and up to 71 years:
   • Annual FHSA contribution limit: $8,000 | Lifetime FHSA contribution limit: $40,000.
   • Contributions made to an FHSA are tax-deductible.
   • As with a TFSA, no taxes are paid on withdrawals made to purchase an eligible first home.

   There are also certain duration requirements for the First Home Savings Account. Accounts can stay open:

   • For a maximum of 15 years.
   • Until the end of the year when someone turns 71.
   • Until the end of the year following the year a qualifying withdrawal for a home purchase is made.
4. Bonus! Home buyer’s amount
   There are additional tax credits for home buyers. As a first-time homeowner you can claim up to $5,000 within one year of purchasing your home on line 31270 (which was line 369 before 2019) of your tax returns. Eligible home buyers could receive up to a $750 rebate!

For more information on any of the three programs, visit The Government of Canada website.

An extra bonus

Before you start looking for your first home, explore your options with our mortgage calculator or ask an advisor about our Home Sweet Bonus® Account. Your search for the right house goes hand-in-hand with finding the right mortgage to make sure you are making the most of your savings. The best place to start is to understand how much you can borrow and what your monthly payments will be. You can also apply for a mortgage online.

For those looking to break into the real estate market, now could be the best time. Enjoy a competitive rate guarantee and smart payment options built into all our mortgages.