First-Time Home Buyers (Canada): Updated Benefits & Tax Incentives. Here are some important updates for first time home buyers. Please make sure to always consult with your lawyers and accountants to determine what you qualify for. 

1. Home Buyers’ Amount

• This is a one-time, non-refundable tax credit for qualifying first-time homebuyers.

• You can claim up to a $10,000 home buyers’ amount, which translates to a maximum $1,500 tax credit (15% of $10,000) Sorbara Law+3Wikipedia+3Ratehub.ca+3NerdWallet+1.

• To qualify, you (and your spouse/common-law partner, if applicable) must not have lived in a home owned by youin the year of purchase or in any of the four previous years NerdWallet+2Government of Canada+2.

2. Home Buyers’ Plan (HBP) – RRSP Withdrawal

• The HBP allows you to withdraw up to $60,000 tax-free from your RRSP (or $120,000 total for a couple) to buy or build a qualifying home Fidelity Investments Canada+15Government of Canada+15National Bank+15.

• The $60,000 limit applies to withdrawals made after April 16, 2024 RBC Wealth Management+3Government of Canada+3Government of Canada+3.

• You must repay the withdrawn amount within 15 years, starting the second year after withdrawal Fidelity Investments Canada+15Government of Canada+15Government of Canada+15.

3. First Home Savings Account (FHSA)

• Introduced in 2023, the FHSA is a tax-advantaged account designed to help first-time homebuyers save for a down payment.

• You can contribute up to $40,000 total, with an annual limit of $8,000.

• Contributions are tax-deductible, and investment earnings are tax-free, similar to an RRSP and TFSA comboWikipedia+2National Bank+2Government of Canada.

• If funds aren’t used toward a home within 15 years, you must transfer them to an RRSP or withdraw them (subject to tax) Investopedia+5Wikipedia+5Investopedia+5.

4. First-Time Home Buyer Incentive (FTHBI)

• Administered by the Canada Mortgage and Housing Corporation (CMHC).

• Offers a shared-equity mortgage, with the government contributing:

  • Up to 5% of the purchase price of a resale home,

  • Up to 10% for a new construction.

• At the time of sale or after 25 years, repayment is based on the home's current value—i.e., if the home's value appreciates, your reimbursement proportionately increases CMHC+8Wikipedia+8Government of Canada+8CMHCCanada Mortgage and Housing Corporation.

• To qualify: your household income must be under $120,000, and the mortgage amount cannot exceed 4 times your annual income (sometimes 4.5× in high-cost regions like Toronto or Vancouver) Sorbara Law+1.

5. Other Considerations

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• Extended amortization for first-time buyers: As of August 1, 2024, the federal government allows 30-year mortgage amortizations (instead of 25 years) on newly built homes, making monthly payments more affordableReuters+1.

• GST/HST Rebates: For homes under certain price thresholds, rebates may be available on GST/HST paid, especially for new construction Government of Canada.