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First-Time Home Buyer Incentives in Canada (2025 Update)

  • Writer: Konstantin Shaburov
    Konstantin Shaburov
  • Sep 16, 2025
  • 2 min read

Updated: Oct 17, 2025

Cartoon illustration of a house, family silhouette, calculator, hammer, and money bag with a dollar sign, symbolizing first-time home buyer incentives in Canada in 2025
First-Time Home Buyer Incentives in Canada in 2025

Buying your first home in Canada has never been easy - and with rising interest rates and high prices in many cities, 2025 brings its own challenges. Thankfully, there are government incentives, tax credits, and rebates designed to help first-time home buyers take that big step onto the property ladder. Here’s the latest 2025 update on what you can access.


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

  • A refundable tax credit available to first-time buyers.

  • In 2025, you can claim up to $10,000, which translates to a $1,500 tax rebate.

  • To qualify, you (or your spouse/partner) must not have owned a home in the last 4 years.


2. Home Buyers’ Plan (HBP)

  • Allows you to withdraw up to $60,000 from your RRSP (per person) tax-free to buy your first home.

  • Couples can combine for $120,000.

  • You have 15 years to repay the funds into your RRSP.


3. First Home Savings Account (FHSA)

  • Introduced in 2023 and continuing in 2025.

  • Lets you save up to $8,000 per year, with a lifetime maximum of $40,000.

  • Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying home purchase are tax-free (like a TFSA).

  • Unused contribution room carries forward.


4. GST/HST New Housing Rebate

  • If you buy a newly built home, you may qualify for a partial GST/HST rebate.

  • Applies to homes priced under $450,000 federally, with some provinces (like Ontario) offering additional rebates at higher thresholds.


5. First-Time Home Buyer Incentive (Shared Equity Program)

  • Offered through CMHC, this program provides:

    • 5% for a resale home

    • 5% or 10% for a new build

  • The government takes an equity stake in your home (repaid when you sell or after 25 years).

  • In 2025, participation is lower, but it can still help reduce monthly mortgage payments.


How These Incentives Work Together

A first-time buyer in 2025 could:

  • Open a FHSA and save $40,000 tax-free.

  • Withdraw another $60,000 from their RRSP through the HBP.

  • Claim the $1,500 HBTC on taxes.

  • Apply for the shared equity incentive for extra support.

That’s potentially over $100,000 in combined assistance when used strategically.


Tips to Maximize Incentives

  1. Plan early: Open your FHSA as soon as possible to build contribution room.

  2. Combine programs: You can stack the FHSA, HBP, and HBTC for maximum benefit.

  3. Know provincial programs: Ontario, B.C., and other provinces sometimes offer land transfer tax rebates.

  4. Work with a mortgage broker: They can help you understand how these incentives affect qualification.


Bottom Line

For first-time buyers, 2025 is a challenging but still achievable year to enter the housing market. By taking advantage of Canada’s tax credits, rebates, and savings programs, you can reduce upfront costs and improve affordability. The key is understanding each program, planning ahead, and combining incentives where possible.



Ready to put these incentives to work? Whether you’re buying, selling, or balancing both, we’ll guide you through every step of the process.


 
 
 

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