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Introduction

If you’re planning to buy your first home in 2025, there’s good news — several government programs, rebates, and incentives are still available to help you make that dream a reality. From tax credits to down payment assistance, these programs can save you thousands of dollars and make qualifying for a mortgage easier.

Let’s break down the top first-time home buyer incentives in Canada for 2025 — and how to take advantage of them before year-end.

1. First Home Savings Account (FHSA)

The First Home Savings Account (FHSA) remains one of the most valuable tools for new buyers in 2025.

• Contribute up to $8,000 per year, with a lifetime limit of $40,000.

• Contributions are tax-deductible, and withdrawals for a first home are tax-free.

• You can also combine it with the RRSP Home Buyers’ Plan (HBP) for additional savings.

💡 Tip: Open your FHSA early to maximize contribution room and take advantage of tax benefits before filing next year’s return.

2. RRSP Home Buyers’ Plan (HBP)

The RRSP Home Buyers’ Plan allows first-time buyers to withdraw up to $35,000 from their RRSPs (or $70,000 per couple) tax-free to use toward a down payment.

• Repay the amount within 15 years.

• Can be used alongside the FHSA for a combined down payment boost.

This combination is a smart way to build equity faster and reduce the mortgage amount needed.

3. First-Time Home Buyer Incentive (FTHBI)

Although adjusted in recent years, the FTHBI still offers shared-equity support in 2025:

• Get 5% (resale home) or 10% (new build) of the home’s purchase price through a Government of Canada equity loan.

• No interest or regular payments — repay when you sell or after 25 years.

• Available to buyers with household incomes under $120,000 (or up to $150,000 in high-cost areas like Toronto, Vancouver, or Victoria).

💬 Note: This program helps reduce monthly mortgage payments, but it also means sharing appreciation when you sell — so read the fine print carefully.

5. GST/HST New Housing Rebate

If you’re purchasing a newly built home or condo, you may qualify for a partial refund on GST or HST:

• Up to 36% of the federal portion of HST (on homes ≤ $350,000).

• Provincial rebates may also apply.

This rebate is especially valuable for pre-construction buyers or those purchasing directly from a builder.

6. CMHC Mortgage Loan Insurance Rebate

Through CMHC Eco Plus or other programs, buyers purchasing energy-efficient homes may receive up to 25% of their CMHC insurance premium back.
If you’re building or buying a green-certified property, this can translate into hundreds or even thousands of dollars in savings.

7. Local & Regional Grant Programs

Some municipalities and provinces continue to offer local down payment assistance or closing cost grants.
Examples include:

• Toronto Affordable Home Ownership Program

• PEI Down Payment Assistance Program

• BC Housing’s Affordable Home Ownership Program

Always check with your city or provincial housing authority or work with a mortgage broker who can identify programs you qualify for

8. How RateShop Helps First-Time Buyers

RateShop.ca simplifies your journey by helping you:

• Compare rates from top Canadian lenders.

• Get pre-approved quickly before making an offer.

• Access first-time buyer programs matched to your profile.

Our experts guide you through every step — ensuring you save more, stress less, and secure your first home with confidence.

Conclusion

In 2025, first-time home buyers still have plenty of ways to reduce costs through federal, provincial, and municipal incentives. From the FHSA and HBP to tax rebates and shared-equity programs, every dollar saved brings you closer to owning your dream home.

Before you start house hunting, get pre-approved and explore all available programs through RateShop.ca — your trusted partner for finding the best mortgage rates and rebates in Canada.