DirectOffers
Buying your first home in Canada comes with several government incentives designed to help you get into the market. Here’s a comprehensive guide to what’s available in 2026.
1. First-Time Home Buyer Incentive (FTHBI)
The federal government offers a shared equity mortgage where they contribute:
- 5% for resale homes
- 5-10% for new construction
This reduces your monthly mortgage payments. You repay the incentive when you sell or after 25 years.
Eligibility:
- First-time buyer
- Annual household income under $120,000 (or $150,000 in Toronto, Vancouver, Victoria)
- Total borrowing no more than 4x your income
2. Home Buyers’ Plan (HBP)
Withdraw up to $35,000 from your RRSP tax-free to buy your first home. Couples can withdraw up to $70,000 combined.
Key points:
- Must repay over 15 years
- First repayment due 2 years after withdrawal
- No tax on withdrawal if repaid on schedule
3. First-Time Home Buyers’ Tax Credit (HBTC)
A non-refundable tax credit of $10,000, providing up to $1,500 in tax relief.
4. Land Transfer Tax Rebates
Ontario Provincial
- Up to $4,000 rebate for first-time buyers
Toronto Municipal
- Up to $4,475 additional rebate for first-time buyers in Toronto
5. First Home Savings Account (FHSA)
A registered savings account combining RRSP and TFSA benefits:
- Annual contribution limit: $8,000
- Lifetime limit: $40,000
- Tax-deductible contributions
- Tax-free withdrawals for home purchase
6. GST/HST New Housing Rebate
If buying a new construction home, you may qualify for a rebate of up to $24,000 of the GST/HST paid.
Maximizing Your Benefits
Many of these programs can be combined. For example:
- Use your FHSA + HBP for your down payment
- Claim the HBTC on your tax return
- Apply for LTT rebates at closing
- Use DirectOffers’ commission rebate to offset closing costs
How DirectOffers Adds to Your Savings
On top of all government incentives, DirectOffers gives you 80% of the buyer’s agent commission back at closing. On a $900,000 home, that’s an additional $18,000 in your pocket.
Ready to start saving? Calculate your potential rebate with our free calculator.