First-time home buyer programs in Canada: what newcomers can claim
Newcomers can use the same first-time buyer programs as everyone else: the FHSA, the Home Buyers’ Plan (up to $60,000 from an RRSP), the $10,000 home buyers’ amount and, on a new home from a builder, a GST rebate of up to $50,000. The catch: most programs count homes you owned outside Canada, and B.C. and Ontario land transfer tax breaks require citizenship or permanent residence.
Federal programs
FHSA: save up to $8,000 a year ($40,000 lifetime) tax-free for a first home. See our TFSA, RRSP and FHSA guide.
Home Buyers’ Plan: borrow up to $60,000 from your RRSP and repay it over 15 years. For first withdrawals made from 2026 to 2028, repayment starts in the fifth year after the withdrawal.
Home buyers’ amount: claim $10,000 on your tax return (line 31270), which cuts your federal tax by up to $1,500.
GST rebate on new homes: first-time buyers can get back all the GST on a new home up to $1 million bought from a builder, with a smaller rebate up to $1.5 million (up to $50,000). It applies to purchase agreements signed in 2025 or later; check the exact date and conditions with the CRA.
Who counts as a first-time buyer
For the federal programs, you generally qualify if you (and your spouse or partner) did not own a home you lived in during the current year or the previous four years. Homes outside Canada count. If you sold your home in Hong Kong or China five or more years ago, you may qualify again.
Provincial land transfer tax breaks
British Columbia: no property transfer tax on the first $500,000 for homes worth $835,000 or less, with a partial exemption up to $860,000. You must be a citizen or permanent resident, have lived in B.C. for a year (or filed two B.C. tax returns), and have never owned a principal residence anywhere in the world.
Ontario: a refund of up to $4,000 of land transfer tax. You must be a citizen or permanent resident (or become one within 18 months) and never have owned a home anywhere in the world. Toronto has its own extra rebate.
Can I use the Home Buyers’ Plan in my first year?
Only if you have RRSP savings, and RRSP room depends on Canadian income from the previous year. Most newcomers rely on the FHSA and TFSA first.
I owned a flat in Hong Kong. Can I get the B.C. or Ontario first-time buyer break?
No. Both provinces exclude anyone who has ever owned a home anywhere in the world. Federal programs use a shorter four-year look-back.
Official sources
- CRA: Home Buyers' Plan
- CRA: home buyers' amount (line 31270)
- Finance Canada: GST relief for first-time buyers on new homes
- B.C.: first time home buyers’ property transfer tax exemption
- Ontario: land transfer tax refunds for first-time homebuyers
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