First-Time Home Buyer Programs in Canada: FHSA, RRSP HBP & GST Rebate

The CMHC First-Time Home Buyer Incentive (FTHBI) was discontinued by the federal government in March 2024, and no new applications are being accepted. If you already have an existing FTHBI, this does not affect you. For buyers starting today, here are the current programs and tools available to make homeownership more affordable in Canada.

Buying your first home is still a significant milestone, and it is still a major financial commitment. The good news is that first-time buyers still have several government programs to help them buy a home. Instead of the old shared equity program, support now comes through savings accounts, withdrawal plans, tax rebates, and updated mortgage rules.

First-time home buyers should understand available grants, rebates, and mortgage programs before making one of life's biggest financial decisions. 

This guide explains to you what's actually available in 2026, so you know exactly where to focus your energy.

Why the FTHBI Was Discontinued?

The FTHBI launched in 2019 as a shared-equity mortgage. The government would contribute 5% or 10% of a home's purchase price in exchange for a matching share in the property's future value. In theory, it lowered monthly payments. 

In practice, strict income and purchase price caps meant many buyers, especially in cities like Toronto and Vancouver, simply didn't qualify. The program attracted far fewer buyers than expected. As a result, the federal government ended new applications in March 2024 and focused on other programs like the First Home Savings Account.

If this is the first you're hearing of the shutdown, don't worry. It doesn't mean the door to homeownership closed with it. It just means the toolkit looks different from what it did a couple of years ago, and this guide is here to walk you through what replaced it.

It's also worth understanding why the shift happened, not just that it happened. When the government reviewed the FTHBI's performance, the core problem wasn't the concept of shared support for buyers; it was the mechanics. 

A shared equity mortgage gives the government a share of your home's future value. This can make selling, refinancing, or repaying the loan after 25 years more complicated.

Buyers also found the income and price caps limiting, since they were set at levels that didn't reflect the reality of home prices in Canada's biggest markets. Rather than patching a program with structural issues, the government redirected that funding toward tools that are simpler to use and easier to integrate.

What follows is a look at the programs that are currently active, plus how they tend to work together in practice.

First-Time Home Buyer Programs in Canada: FHSA, RRSP HBP & GST Rebate

1. First Home Savings Account (FHSA)

The FHSA is the centerpiece of the government's current first-time buyer strategy, and it's widely considered the direct replacement for the FTHBI. 

It combines the tax deduction of an RRSP with the tax-free withdrawals of a TFSA, specifically for saving toward a first home. 

Read our complete First Home Savings Account Guide to learn the rules and limits. It is the best place for most first-time home buyers to start.

2. RRSP Home Buyers' Plan (HBP)

The HBP lets eligible first-time buyers withdraw funds from their RRSP toward a down payment without immediate tax consequences, as long as the amount is repaid over time. It can also be combined with an FHSA for a larger combined down payment. 

We cover the withdrawal limits, repayment schedule, and how it stacks with the FHSA in our separate post: RRSP Home Buyers' Plan (HBP).

3. GST/HST New Housing Rebate

If you're buying a newly built home or doing a major renovation, you may be eligible to recover part of the GST or HST paid on the purchase. This rebate has its own set of qualifying conditions depending on the home's value and use. 

Read our GST/HST New Housing Rebate to learn who qualifies and how the rebate is calculated.

4. 30-Year Amortization for First-Time Buyers

Certain first-time buyers purchasing new construction can now qualify for a 30-year amortization on an insured mortgage, rather than the standard 25 years. Stretching payments over a longer period can meaningfully reduce monthly costs, though it also means paying more interest over the life of the loan. 

Want to explore more? Learn how 30 Year Amortization for First-Time Buyers works in our complete guide. It explains eligibility and payment details. 

5. Ontario Land Transfer Tax Rebate for First-Time Buyers

Buyers in Ontario may also be eligible for a rebate on the provincial land transfer tax, and in some cases, a municipal land transfer tax rebate as well, if buying in Toronto. This is separate from any federal program and can be combined with the tools above. 

Get details on rebate amounts and how to claim them in our post on Ontario Land Transfer Tax Rebate for First-Time Buyers.

What Should You Consider Before Choosing a Program?

Every buyer's situation is different, and these programs aren't mutually exclusive. A few things worth thinking through before you commit to a strategy:

Your timeline matters. If you're buying within the next year or two, the RRSP HBP's higher withdrawal limit might get you to your down payment faster than building up an FHSA from scratch. If you have more runway, the FHSA's tax-free growth can add up meaningfully.

Repayment terms differ. Money withdrawn under the HBP has to be repaid to your RRSP over a set period, or it gets added back to your taxable income. FHSA withdrawals for a qualifying home purchase don't need to be repaid at all.

Combining programs is often the smartest move. Many buyers use the FHSA and the HBP together, then layer on the GST/HST rebate if buying new construction, and a provincial land transfer tax rebate if their province offers one.

Purchase price and location still affect what's realistic. A longer amortization period helps with monthly affordability, but it doesn't change the total price of the home, and interest costs add up over a longer term.

Your definition of "first-time buyer" matters too. Most of these programs use a similar test, generally meaning you and your spouse or common-law partner haven't owned and lived in a home together in the past four years. 

It's a slightly different bar from what the old FTHBI used, so it's worth confirming your own eligibility against each program individually rather than assuming one qualification covers them all.

Don't overlook provincial variation either. While the FHSA, RRSP HBP, and GST/HST rebates are federal and apply the same way across the country, land transfer tax rebates and other incentives vary by province. 

If you're buying outside Ontario, it's worth checking whether your province offers something similar before you assume none exists.

Key Tips for First-Time Home Buyers in 2026

Budget wisely. Look beyond the purchase price. Property taxes, insurance, closing costs, and ongoing maintenance all factor into what you can realistically afford.

Open accounts early. Your FHSA contribution room only starts accumulating once the account is opened, not from the year you became eligible. The earlier you open one, the more room you build.

Talk to a mortgage broker before you commit. Program rules, withdrawal limits, and amortization eligibility can shift from year to year, and a broker can confirm what applies to your specific situation.

Keep detailed records. Whether you're tracking FHSA contributions, HBP withdrawals, or rebate paperwork, having organized records makes tax time and mortgage applications much smoother.

Work with professionals. A good real estate agent, mortgage broker, and financial advisor working together can help you sequence these programs in the order that benefits you most.

Frequently Asked Questions

Is the First-Time Home Buyer Incentive coming back? 

There's no indication the federal government plans to relaunch the FTHBI. Current policy direction is focused on the FHSA, RRSP HBP, and mortgage rule changes like the 30-year amortization option instead.

Can I still use my existing FTHBI if I already have one? 

Yes. If you were approved before the March 2024 cutoff, your existing shared-equity mortgage continues under its original terms. 

Do I have to pick just one program? 

No. Most first-time buyers end up using two or more of these tools together. The FHSA and RRSP HBP are commonly paired, and either can be combined with the GST/HST rebate or a provincial land transfer tax rebate, where applicable.

Where can I get help figuring out which programs apply to me? 

A licensed mortgage broker can look at your income, timeline, and target purchase price and tell you which combination of programs makes the most sense for your specific situation.

Conclusion

The First-Time Home Buyer Incentive may be gone, but Canadians buying their first home in 2026 actually have more tools available than before, from the FHSA and RRSP Home Buyers' Plan to GST/HST rebates, longer amortization periods, and provincial rebates like Ontario's land transfer tax rebate. The right combination depends on your income, timeline, and where you're buying.

Mortgage and government program rules change frequently. Confirm current details with a licensed mortgage broker or the CMHC website before applying.

Ready to figure out which programs make sense for your situation? Contact LendingHub today for a free consultation, and let's map out your path to your first home.