First-Time Home Buyer Guide 2025

H1: First-Time Home Buyer Guide 2025: Programs, Rebates & How to Qualify

H2: Introduction – Why First-Time Buyers Need a 2025 Guide

Buying your first home in Canada is both exciting and overwhelming. From skyrocketing real estate prices to rising interest rates, stepping onto the property ladder in 2025 requires smart planning.

The good news? There are programs, rebates, and strategies designed specifically for first-time buyers. With tools like RateShop, you can compare lenders, get mortgage pre-approval online fast, and secure the lowest mortgage rate available.

This guide will walk you through:

What programs and rebates are available in 2025

How to qualify as a first-time home buyer

Strategies to save thousands on your mortgage

What documents you’ll need for quick mortgage approval in Canada

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H2: Step 1 – Understanding Who Qualifies as a First-Time Buyer

In Canada, you’re considered a first-time home buyer if:

You’ve never owned property in Canada or abroad.

You haven’t lived in a home owned by you or your spouse in the last 4 years.

However, even if you owned property in the past, some federal and provincial programs may still consider you “first-time” under special circumstances (e.g., divorce).

💡 Pro Tip: Always check eligibility details carefully. CMHC outlines the latest qualification rules.

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H2: Step 2 – 2025 First-Time Home Buyer Programs in Canada

Here are the main programs available in 2025 to help you buy your first home:

H3: First-Time Home Buyer Incentive (FTHBI)

A shared equity program with the Government of Canada.

The government contributes 5%–10% of your down payment in exchange for equity.

Repayable when you sell or after 25 years.

H3: Home Buyers’ Plan (HBP)

Withdraw up to $60,000 (increased from $35,000 in 2023) from your RRSP tax-free.

Must repay over 15 years.

H3: First-Time Home Buyers’ Tax Credit (HBTC)

Claim up to $1,500 in non-refundable tax credits.

H3: GST/HST New Housing Rebate

If you’re buying a newly built home, you may qualify for a rebate on the GST/HST portion of your purchase.

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H2: Step 3 – Mortgage Pre-Approval Fast in Canada

The most crucial step for first-time buyers is mortgage pre-approval. It shows you:

How much you can borrow

What your monthly payments will be

The rate you’ll qualify for

With RateShop, you can get a mortgage pre-approval online fast in minutes—sometimes even same-day.

H3: Documents Needed for Quick Pre-Approval

Government-issued ID

Proof of income (T4, pay stubs, Notice of Assessment)

Bank statements (90 days)

Employment letter

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H2: Step 4 – How to Find the Lowest Mortgage Rate Fast

Your mortgage rate impacts your budget more than anything else. To find the cheapest mortgage in Canada, you need to:

Compare mortgage rates Canada wide using a platform like RateShop.

Get multiple mortgage rate quotes online—don’t rely on just your bank.

Work with the best Canadian mortgage broker rates to negotiate better deals.

Use a mortgage rate calculator Canada to test payments under different rates.

💡 Even a 0.25% difference could save you over $3,500 in interest across a 5-year term.

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H2: Step 5 – Fixed vs Variable: What’s Best for First-Time Buyers in 2025?

H3: 5-Year Fixed Mortgage Rate

Most popular choice for first-time buyers.

Predictable, stable payments.

Good for budgeting in uncertain markets.

H3: Variable Mortgage Rates Today

Lower starting rate but fluctuates with Bank of Canada decisions.

Good if you can handle risk and rates trend downward.

H3: Hybrid Strategy

Some buyers split between fixed and variable to balance risk and flexibility.

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H2: Step 6 – Provincial Rebates & Programs

Ontario

Land Transfer Tax Rebate: Up to $4,000 for first-time buyers.

British Columbia

First-Time Home Buyers’ Program: Reduces or eliminates property transfer tax.

Alberta

No land transfer tax, making homes more affordable.

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H2: Step 7 – Renewal, Refinancing & Long-Term Strategy

Even after you buy, you can save money by:

Shopping around at renewal for the mortgage renewal best rate strategy

Refinancing to consolidate debt at a low rate mortgage refinance in Canada

Switching lenders if another offers better terms

💡 Many first-time buyers forget: You don’t have to stick with your bank forever.

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H2: Key Takeaways for 2025 Buyers

Programs like the FTHBI and RRSP withdrawal can save thousands.

Always get mortgage pre-approval fast in Canada before house hunting.

Compare rates through brokers like RateShop for the lowest mortgage rate fast.

Don’t settle—negotiate at renewal and shop around.

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H2: Conclusion – Ready to Buy Your First Home?

Buying your first home in Canada in 2025 is still achievable—even with higher rates and stricter rules. By leveraging government programs, getting pre-approved online, and comparing multiple lenders, you can step into homeownership with confidence.

Start your journey today with RateShop—your one-stop platform to compare, qualify, and secure the best mortgage lender in Canada.