First Time Buyers
First time home buyer? We can help with a minimum of 5% down payment from savings, borrowed funds, gift from family or RRSPs. We are here to answer all your questions and provide as much information as possible on all of the mortgage intricacies and options. It’s not just about rate! It’s about the flexibility each mortgage can offer.
Click here to obtain further details surrounding the qualification for your first purchase!
First Time Home Buyers (FTHB) 30-Year Amortization
Effective December 15, 2024 first-time home buyers are now allowed to purchase any property with less than 20% down payment with a 30-year amortization. The criteria are:
Insured loans only between 80.01-95% loan to value (LTV)
Applications after December 15, 2024
At least one borrower has to be a first-time home buyer as below:
The borrower has never purchased a home before; or
In the last 4 years, the borrower has not occupied a home as a principal place of residence that either they themselves or their current spouse or common-law partner owned; or
The borrower recently experienced the breakdown of a marriage or common-law partnership.
At least one borrower must occupy the property as their primary residence
Eligible properties:
Available for 1 – 4 Units
Owner Occupied or Partially Owner Occupied
Newly built homes, resale homes and condos ONLY
Insurer Premium – surcharge of 0.20% applicable to loans where amortization is >25 years
Eligible loan type – Purchase, Purchase Plus Improvement, Port/Replacement
Ineligible loan type – Small Rental and Secondary Home Programs
Homebuyers Plan (HBP)
The Home Buyers' Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. With the Home Buyers’ Plan you can withdraw up to $60,000, tax-free, from your Registered Retirement Savings Plan (RRSP). You must use this amount to buy or build a qualifying home. The Home Buyers’ Plan isn’t just for buying your first home, it can also be used if there is a martial breakdown and you are looking to buy a new home for yourself.
Please keep in mind that:
You have up to 15 years to repay the amounts you withdraw.
Not making the repayments could end up costing you a lot of money in income tax.
The funds must be in your RRSP account for a minimum of 90 days before they can be withdrawn.
Check out the Government of Canada website to see if you are eligible: What is the Home Buyers' Plan (HBP)? - Canada.ca
First Home Savings Account (FHSA)
Starting April 1, 2023, first-time homebuyers will have a new savings tool to assist with saving for a down payment for their first home. The First Home Savings Account (FHSA) will offer prospective first-time home buyers with the ability to save up to $40,000 tax-free.
Stipulations:
Must be a first-time home buyer.
Must be at least 18 years old.
Must be a Canadian resident.
You or your spouse must not have owned a primary residence within 4 years.
You must occupy the home for at least 1 year following the purchase and withdrawal.
Contributions:
Maximum of $40,000 lifetime deposits.
Maximum of $8,000 annually.
You can contribute but defer a deduction until a year later.
Carry forward ability for future tax years.
Funds leftover after the withdrawal to be transferred into an RSP.
Withdrawals:
Not taxable
Must have an offer to purchase to buy or build by October 1 of the year following the withdrawal.
Can be made within 30 days of a qualifying home purchase.
You can transfer from an RSP to the FHSA.
You do not have to repay within 15 years like the Homebuyers Plan (RRSP Withdrawal).
*The FHSA can be used in conjunction with the Homebuyers Plan (HBP) for a maximum housing contribution of $100,000.
FTHB GST rebate on New built homes
On May 27, 2025, the Minister of Finance and National Revenue, tabled legislative proposals to amend the Excise Tax Act to introduce a new GST rebate for first-time home buyers (the “FTHB GST Rebate”). This was passed into legislation March 12, 2026. As a result of this rebate, first-time home buyers will be able to save up to $50,000 on a new home. Together with the existing GST/HST New Housing Rebate (where that rebate is applicable), the FTHB GST Rebate would provide for a rebate of 100% of the GST on new homes valued up to $1 million.
The FTHB GST Rebate would be phased out in a linear manner for new homes valued between $1 million and $1.5 million. For example, under the linear phase-out, a home valued at $1.25 million would be eligible for a 50% GST rebate (a rebate of up to $25,000).
No FTHB GST Rebate would be available for new homes valued at or above $1.5 million.
To be considered a “first-time home buyer” for the purposes of the FTHB GST Rebate, an individual would generally need to meet the following conditions:
be at least 18 years of age;
be either a Canadian citizen or a permanent resident of Canada; and
not have lived in a home, whether in or outside Canada, that they owned or that their spouse or common-law partner owned in the calendar year or in the four preceding calendar years.
Important Dates for Eligibility
The rebate generally applies to agreements entered into on or after March 20, 2025.
There is currently some uncertainty about whether eligibility is determined based on:
the date the Agreement of Purchase and Sale was signed, or
the date the agreement became unconditional
Final clarification will ultimately come from the Canada Revenue Agency (CRA) once official guidance and application forms are released.
WHAT HAPPENS IF YOU ALREADY PURCHASED A NEWLY BUILT HOME
If you purchased a new construction home recently, you may still qualify depending on your timeline.
If You Purchased and Already Took Possession
Buyers who:
purchased after March 20, 2025, and
took possession before March 12, 2026
may be able to apply directly to the CRA for the rebate once official forms are released. In these cases, the builder does not submit the rebate application. The buyer must apply themselves.
If You Purchased but Haven’t Taken Possession Yet
For buyers who have signed a purchase agreement but have not yet taken possession, builders may now be able to apply the GST rebate directly to the purchase price. This means the savings could potentially be reflected upfront in the transaction, rather than claimed later through the CRA. Your builder and lawyer will typically coordinate this process once the official administrative procedures are finalized.
If you believe you may qualify for the rebate, here are a few practical steps to take:
Monitor Canada.ca for the official CRA rebate forms and instructions.
Keep all purchase documentation related to your new home.
Consult a qualified tax professional if you need specific tax advice.
Speak with your mortgage professional about how the rebate may impact your financing strategy.
For more information checkout the government of Canada website here: Who can apply - First-time home buyers’ (FTHB) GST/HST rebate - Canada.ca
GST/HST New Housing Rebate
The GST/HST new housing rebate allows an individual to recover some of the GST or the federal part of the HST paid for a new or substantially renovated house that is for use as the individual's, or their relation's, primary place of residence, when all the other conditions are met:
Purchased a new or substantially renovated house from a builder.
Constructed or substantially renovated your own home (or hired out the construction or renovation).
The fair market value of the house on completion is less than $450,000.
For more information and to see if your home qualifies for the rebate check out the Government of Canada website: RC4028 GST/HST New Housing Rebate - Canada.ca
The Home Buyers’ Tax Credit
You can claim $10,000 for the purchase of a qualifying home in the year if both of the following apply:
You or your spouse or common-law partner acquired a qualifying home.
You didn’t live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four-preceding year.
Check out the Government of Canada website to see if your home qualifies: Line 31270 – Qualifying home - Canada.ca
Energy Efficient Rebate
The three mortgage insurers offer a premium refund of up to 25% when you buy or build an energy efficient home, or when you buy an existing home and make energy-saving renovations.