First-Time Home Buyer Guide (Canada)

First Home Savings Account (FHSA)

Contribute up to $8,000 a year, to $40,000 in total. Contributions are deductible and qualifying withdrawals are tax-free. You must be a Canadian resident, at least 18 (19 in some provinces) and no older than 71 at the end of the year you open it.

Home Buyers' Plan (HBP)

Withdraw up to $60,000 from your RRSPs and repay it over 15 years. For first withdrawals in 2022–2028, repayments start in the fifth year after the withdrawal. You can use the HBP and an FHSA for the same home.

30-year insured amortization

If you put less than 20% down, the maximum amortization is 30 years for first-time buyers and buyers of new builds, compared with 25 years otherwise. A longer amortization lowers payments but increases total interest.

Rules that still apply

• You need at least 5% of the first $500,000, plus 10% of any part of the price above $500,000. At $1,500,000 or more, the minimum is 20%.
• The qualifying rate is the higher of your contract rate plus 2 percentage points or 5.25%.
• Default insurance is required with less than 20% down; the premium depends on your loan-to-value ratio.

Who counts as a first-time buyer

Definitions differ by program. For the FHSA and Home Buyers' Plan, you generally qualify if you didn't live in a home that you or your spouse or common-law partner owned in the current year or the previous four calendar years. Provincial land transfer tax refunds have their own definitions.

Tax rebates and credits

The federal home buyers' amount is a non-refundable tax credit claimed on your return for the year you buy. First-time buyers of newly built homes may also qualify for a GST/HST rebate.

Today's borrowing costs

On new uninsured mortgages, Canadians paid an average of 4.58% (Aug 2026) for fixed terms of five years or more and 3.90% (Aug 2026) for variable rates, according to the Bank of Canada. Insured borrowers paid 4.12% and 3.74%.

The Bank of Canada's policy rate is 2.50% (Nov 11, 2026) and the banks' prime rate is 4.70% (Nov 11, 2026). Variable rates move with prime; fixed rates follow Government of Canada bond yields, with the 5-year yield at 3.46% (Nov 10, 2026).