Take Advantage of Canada’s Homeownership Support Programs
Investing in your first home is one of life’s biggest milestones, and the Government of Canada offers incentives designed to ease the financial commitment. These programs include the First-Time Home Buyers’ (FTHB) Tax Credit and an expanded Home Buyers’ Plan (HBP) to help make your dream of homeownership a reality.
First-Time Home Buyers’ (FTHB) Tax Credit
When purchasing a home, first-time buyers face unique expenses, including legal fees, disbursements, and land transfer taxes—all while needing to save for a down payment. The Government of Canada introduced the FTHB Tax Credit in 2009 to help ease this financial burden.
Key Details:
- Amount: A non-refundable tax credit of up to $5,000 on a qualifying home.
- Benefit: Eligible individuals can receive up to $750 in federal tax relief.
Expanded Home Buyers’ Plan (HBP)
To enhance access to funds for first-time homebuyers, the Government of Canada increased the HBP withdrawal limit. First-time buyers can now withdraw up to $25,000 (increased from $20,000) from their RRSP to purchase or build a home.
More Resources for Homebuyers
Making an informed decision is essential. Canada Mortgage and Housing Corporation (CMHC) provides comprehensive tools and resources for first-time buyers, including:
- Mortgage Calculators
- Homebuying Guides & Videos
- Home Hunting Worksheets
Additionally, CMHC offers mortgage loan insurance, allowing you to buy a home with a minimum down payment of 5%—at interest rates similar to those with a 20% down payment. Speak to your mortgage professional about CMHC options to help bring homeownership within reach.
For Further Information
Learn more about the FTHB Tax Credit and the HBP:
- Visit Canada Revenue Agency’s Website
- Call 1-800-O-Canada