🧱 First-Time Home Buyer Programs in Canada: September 2025 Update

Introduction

Buying your first home in Canada can feel overwhelming — especially in a market still adjusting to higher interest rates and changing affordability.
But good news for first-time home buyers in September 2025: several national and provincial programs are still available to help you save on your down payment, reduce closing costs, and qualify for better mortgage terms.

1. Top First-Time Home Buyer Programs (2025 Update)

🏠 First Home Savings Account (FHSA)

The FHSA remains one of Canada’s most powerful 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 your first home are tax-free.

• Combine with your RRSP Home Buyers’ Plan for even more savings.

💰 Home Buyers’ Plan (HBP)

You can withdraw up to $60,000 (as of 2025) from your RRSP to fund your down payment, repayable over 15 years.
Many Canadians pair this with the FHSA to build a stronger financial foundation.

🏘️ First-Time Home Buyer Incentive (FTHBI)

Though scaled back in 2024, this shared-equity program still helps lower-income buyers reduce monthly payments by letting the government co-invest up to 10% of a home’s purchase price.

2. Provincial Incentives Worth Exploring

Depending on where you buy, there are extra savings available:

• Ontario: Land Transfer Tax rebate up to $4,000

• British Columbia: Property Transfer Tax exemption for homes under $525,000

• Alberta: Lower closing costs and competitive mortgage rates through credit unions

• Nova Scotia: First-time Home Buyers Rebate up to $3,000

Each province offers different programs, so it’s wise to check local incentives before applying for your mortgage.
3. How Much Home Can You Afford in 2025?

With mortgage rates averaging 4.5%–5%, affordability remains a key concern.
As a general rule:

• Spend no more than 39% of your gross income on housing (GDS ratio).

• Aim for at least a 5% down payment on homes under $500,000.

• Use RateShop.ca’s mortgage affordability calculator to estimate real costs, including property taxes and insurance.

4. New Down Payment & Affordability Strategies
Gifted funds from family: Still accepted by most lenders, with proper documentation.

• Shared equity co-ownership: Buy with a friend or partner to split costs.

• Shorter amortization + later refinance: Lock in now, refinance in 2026 if rates fall.

These strategies are helping more Canadians enter the market even amid higher prices.

Conclusion

For first-time home buyers, September 2025 offers a mix of opportunity and challenge.
By combining federal programs like FHSA, HBP, and FTHBI with local rebates, you can save thousands and confidently take your first step toward homeownership.
Start by comparing mortgage rates and getting pre-approved — your dream home could be closer than you think.