Couple hugging, text: First Time Home Buyers Incentives edition

Buying Your First Home - Incentives edition

Tuesday Jul 18th, 2023


Thinking about buying your first home? It can be really overwhelming. Step number one is securing your down payment. There are several different incentive plans you should look into to see if you qualify. 

First Home Savings Account (FHSA)
A First Home Savings Account (FHSA) is a registered plan allowing you, as a prospective first-time home buyer, to save for your first home tax-free (up to certain limits). 
The account has a $40,000 lifetime contribution limit and grows tax free. After 15-years the account can then be rolled into the RRSP without affecting RRSP contribution room. Effectively it gives anyone who qualifies for the FHSA an extra $40,000 to contribute to their RRSP. For all the details about how the plan works and whether you qualify visit our blog First Home Savings Account (FHSA).  

First Time Home Buyer Incentive

With this incentive, Government of Canada provides:

  • 5% or 10% for a first-time buyer’s purchase of a newly constructed home

  • 5% for a first-time buyer’s purchase of a resale (existing) home

  • 5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home

The incentive is available to first-time homebuyers with qualified annual incomes of $120,000 or less. A participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual income.For more about this please visit our blog First Time Home Buyer Incentive Program

First-Time Home Buyers’ Tax Credit (HBTC)

For the 2022 and subsequent taxation years, the amount used to calculate the HBTC has been increased to $10,000, which would provide a tax credit of up to $1,500 to eligible home buyers.
To find out more about this please visit First-Time Buyers' Tax Credit (HBTC)

Home Buyers' Plan (HBP)
The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. The HBP allows you to pay back the withdrawn funds within a 15-year period. For more about this please visit How To Participate in the Home Buyers' Plan (HBP) 

It’s important to know what all your options are to help realize your dreams of being a homeowner. Please feel free to contact me in complete confidence to discuss how to start your journey to becoming a homeowner.

This information should not be relied on as legal advice, financial advice, or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel or financial representative.


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