First-Time Homebuyers in Canada: Programs, Perks & Definitions You Need to Know

Buying your first home is exciting — but it can also be overwhelming, especially when you hear the term “first-time homebuyer” used in different ways. Did you know that not all programs define “first-time buyer” the same way? Depending on the plan, your eligibility could change based on whether you’ve owned a home before, when you sold it, or even whether your spouse owned one.

To help clear things up, let’s look at the main programs available to first-time homebuyers in Canada, what they offer, and how each defines “first-time buyer.”

🏡 The Home Buyers’ Plan (HBP) – Using Your RRSPs

The HBP lets you withdraw up to $60,000 from your RRSPs (per couple) to put toward a down payment.

Eligibility Highlights:

✔️ You must not have lived in a home you (or your partner) owned in the last four calendar years

✔️ You need a signed agreement to buy or build a home

✔️ The home must be your principal residence within one year

This program gives many Canadians a “fresh start,” even if they owned before, as long as they meet the 4-year rule.

💰 The First Home Savings Account (FHSA)

The FHSA is Canada’s newest tool for first-time buyers — and a true game changer. It combines the tax benefits of an RRSP and a TFSA, allowing you to contribute up to $8,000 annually, to a maximum of $40,000 tax-free, toward your first home.

Eligibility Highlights:

✔️ Must be 18–71 and a Canadian resident

✔️ Cannot have owned or lived in a qualifying home in the year before opening the account or in the last four calendar years

✔️ Spouse/partner ownership counts if you lived in that property

Tip: Open your FHSA early, even with a small contribution, to start the eligibility clock.

🧾 First-Time Homebuyer Definition & 30-Year Amortization Rules

When it comes to insured mortgages:

• First-time buyers can access up to a 30-year amortization, whether buying a new build or resale property.

• Repeat buyers only qualify for a 30-year amortization if purchasing a newly built home with mortgage insurance.

• For resale homes, repeat buyers are capped at a 25-year amortization.

This difference can have a big impact on affordability and monthly payments.

🏠 New Home Building Programs for First-Time Buyers

First-time buyers may also benefit from additional incentives and rebates when purchasing newly constructed homes, depending on province and lender rules. These programs are often tied to longer amortizations, energy efficiency rebates, or GST/HST credits.

Quick Comparison Chart

Program / Rule	Never Owned Anywhere	4-Year Look back	Partner’s Ownership Counts	Benefit
Home Buyers’ Plan (HBP)	No	✔️	✔️	Use up to $60,000 RRSPs for down payment
First Home Savings Account (FHSA)	No	✔️	✔️	Save up to $40,000 tax-free toward a first home
30-Year Amortization (FTHB)	No	N/A	✔️	30-year insured amortization available on both new + resale homes (FTHB only)

💡 The Bottom Line

Being a “first-time homebuyer” doesn’t always mean what you think. Each program has its own definition and rules. The key is to know which ones apply to your situation so you don’t miss out on benefits that could save you thousands.

👉 Thinking about buying your first home? Let’s explore your options together and create a plan that makes homeownership possible.