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  • The funds must be in your RRSP account for a minimum of 90 days before they can be withdrawn.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.

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.

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

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”). 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.

Click HERE to read the Department of Finance release for more information.