The Canadian government and various provincial or municipal agencies offer programs to assist first-time buyers—but these can change quickly. Here’s what’s currently available in 2025—and what’s no longer open to new applicants.
1. Home Buyers’ Plan (HBP)
• What It Is
The HBP lets you withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) (or $120,000 for a couple) for a down payment, tax-free at the time of withdrawal.
Learn more on the Canada.ca Home Buyers’ Plan (HBP) page
• Key Details
No Immediate Tax: You won’t pay tax on the withdrawal if you’re buying a qualifying home.
15-Year Repayment: You must repay the withdrawn amount over 15 years or have it added to your taxable income for that year.
• Why It Helps
If you’ve contributed regularly to your RRSP, the HBP can significantly boost your purchasing power.
Pro Tip: After using the HBP, consult a financial advisor or mortgage specialist to set up a practical RRSP repayment plan.
2. Land Transfer Tax (LTT) Rebates
• Provincial LTT Rebate (Ontario)
First-time buyers in Ontario can get up to $4,000 off their provincial land transfer tax.
Details at the Ontario Ministry of Finance site
• Municipal LTT Rebate (Toronto Only)
Toronto charges an additional municipal LTT, effectively doubling what you’d pay in the rest of Ontario. First-time buyers can qualify for up to $4,475 off the municipal portion.
See the City of Toronto Municipal LTT page
• Why It Matters
In Toronto, combining the provincial and municipal rebates can save you up to $8,475—significantly reducing closing costs.
Pro Tip: Ensure your lawyer files for these rebates during closing to lower your initial out-of-pocket expense.
3. First-Time Home Buyers’ Tax Credit (HBTC)
• What It Is
A non-refundable tax credit worth 15% of $10,000, equaling up to $1,500 in federal tax relief.
Check eligibility at Canada.ca’s First-Time Home Buyers’ Tax Credit page
• Eligibility & Benefits
First-Time Homeowner: You or your spouse must not have owned a home recently.
Tax Return Claim: Reduce your taxable income in the year of purchase.
Helpful Boost: Although modest, it offsets some closing costs.
Tax Insight: Combine the HBTC with the Home Buyers' Plan for a broader financial advantage.
4. Energy-Efficiency Rebates (Program Status Varies)
• Program Changes
The Canada Greener Homes Grant stopped accepting new applications in early 2024. Homeowners who already applied may still receive rebates.
• New Options Coming
The government has proposed new energy initiatives, such as the Oil to Heat Pump Affordability Program, with possible future rebates for eco-upgrades.
• Condo Considerations
In-unit retrofits like windows or HVAC may require condo board approval. Shared systems often fall outside the homeowner’s responsibility.
• Why Consider Energy Upgrades?
Lower Utility Bills
Higher Resale Value
Reduced Environmental Impact
Pro Tip: Some lenders offer green mortgage incentives for energy-efficient homes—ask before you apply.
5. Municipal and Regional Assistance
• Local Grants & Programs
Some municipalities offer down payment help, property tax deferrals, or other supports. Each region has its own rules, so keep an eye on local housing authority pages.
• Stay Alert
These programs can appear as short-term pilots or one-off grants, so timing your home purchase to take advantage can be a bonus.
Example: Certain regions provide forgivable loans if you remain in the home for a set number of years. Terms vary widely.
6. The First-Time Home Buyer Incentive (FTHBI): No Longer Accepting Applications
• What It Was
A shared-equity initiative to reduce monthly mortgage costs through partial government co-ownership of your property.
• Current Status
As confirmed on the CMHC’s page, the program closed permanently as of March 21, 2024, and is no longer available.
• Alternatives
HBP & LTT Rebates: Combine these if applicable.
Cash-Back Mortgages: Certain lenders may help cover initial costs.
Final Thoughts: Navigating Today’s Incentives
Although certain programs have wrapped up, several cornerstone incentives remain to ease the financial strain of first-time homeownership:
Leverage Your RRSP (HBP): A potentially large source of down payment funds.
Maximize LTT Rebates: Especially critical in Toronto, where you face both provincial and municipal taxes.
Claim Tax Credits: The HBTC can cushion part of your purchase expenses.
Explore Energy-Efficiency Grants: Qualify for upgrades that boost both home comfort and value (including condos, in many cases).
Key Tips:
• Research Early: Determine which programs suit your situation and plan accordingly.
• Consult Professionals: Mortgage advisors, financial planners, and ethical real estate agents can help align these incentives with your home-buying strategy.
• Stay Informed: Government incentives can shift, so regularly check official sites for updates or re-introduced programs.
With the right combination of thorough planning and expert guidance, first-time buyers can still find meaningful savings on the road to homeownership in Canada.
