Real estate for beginners
Buying your first home in Canada.
Clear, honest guidance for first-time buyers: what you actually need to save, which programs you can use right now, and how to know when you're ready.
The two programs worth knowing
- FHSAUp to $8,000 a year, $40,000 lifetime, tax-free for your first home
- RRSP HBPWithdraw up to $60,000 tax-free, repay over 15 years
Where do I actually start?
It comes down to three things.
Buying your first home feels overwhelming mostly because nobody breaks it down simply. Here's the truth: how much you've saved, which programs can boost those savings, and what your realistic monthly costs will be once you own.
My best advice: work with a residential property coach to plan, structure and carry out a strategy, so your first transaction is a profitable one.
1 · Your savings
A clear, honest number, not a rough guess.
2 · Your programs
FHSA, RRSP Home Buyers' Plan and provincial land transfer tax rebates.
3 · Your monthly costs
Mortgage, property tax, insurance and a repair cushion.
The two programs worth knowing
Use one. Better yet, use both.
A savings account built specifically for a first home. Contribute up to $8,000 a year, to a $40,000 lifetime maximum. Contributions reduce your taxable income and, unlike an RRSP, withdrawals for your home purchase are completely tax-free. If you only use one program, prioritize this one.
Already have RRSP savings? Withdraw up to $60,000 tax-free toward your first home. It works like an interest-free loan from your future self: you pay it back into your RRSP over 15 years. It can be combined with the FHSA on the same purchase.
Note: the older First-Time Home Buyer Incentive was discontinued in March 2024. If you've read about it elsewhere, it's no longer available.
Down payment
How much do I actually need?
It isn't a flat 5% across the board. Here's the real rule.
If you put down less than 20% in total, you'll need mortgage default insurance (often called CMHC insurance), which adds a percentage to your mortgage balance.
Since December 2024, first-time buyers and new-construction buyers can access 30-year amortizations, and insured mortgages are available up to $1.5 million. Both matter if you're shopping in a higher-priced market.
| Portion of the price | Minimum down |
|---|---|
| First $500,000 | 5% |
| Above $500,000 | 10% |
| Example: $650,000 home | $25,000 + $15,000 = $40,000 |
New in 2026
Up to $50,000 back on a new home.
The First-Time Home Buyers' GST rebate became law on March 12, 2026.
How it works
- Newly built or substantially renovated homes only, not resale
- 100% of the GST back on homes up to $1 million, to a maximum of $50,000
- A partial rebate between $1 million and $1.5 million
- The home must be your primary residence, and you must not have lived in a home you or your spouse owned in the current year or the previous four years
- In Québec, it covers the federal GST only, not the QST
Are you ready to buy? Check yourself in 5 minutes.
Free ready-to-buy checklistWhat "ready" actually looks like
You're in a strong position when you have:
- A clear, honest savings number, not a rough guess
- A realistic sense of your full monthly costs: mortgage, property tax, insurance and a repair cushion
- An understanding of which programs (FHSA, HBP, land transfer tax rebates in your province) you can actually use
South of the border?
Thinking about Florida?
Some Canadian buyers, once settled at home, look at property in the southern U.S., often Florida. It's a different process: the FHSA and HBP don't apply to a U.S. purchase, financing works differently for non-resident buyers, and there are cross-border tax questions to understand before you start. If you're considering it, let's walk through it properly in a separate conversation.
Frequently asked questions
Your questions, straight answers.
Is there a GST rebate for first-time buyers in Canada?
Yes. Since March 12, 2026, first-time buyers of a newly built home can get back 100% of the GST on homes up to $1 million, to a maximum of $50,000, with a partial rebate up to $1.5 million. Resale homes are not eligible, and in Québec it covers the federal GST only, not the QST.
Can I use the FHSA and the RRSP Home Buyers' Plan together?
Yes. First-time buyers can combine the First Home Savings Account and the RRSP Home Buyers' Plan on the same purchase.
How much can I put in an FHSA?
Up to $8,000 a year, to a lifetime maximum of $40,000. Contributions reduce your taxable income, and qualifying withdrawals for your first home are tax-free.
What is the minimum down payment in Canada?
5% on the first $500,000 of the price and 10% on the portion above $500,000. With less than 20% down, you need mortgage default insurance.
Is the First-Time Home Buyer Incentive still available?
No. The federal First-Time Home Buyer Incentive ended in March 2024.
Not sure where you stand?
Let's look at your numbers together, honestly and without pressure.
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