First-Time Buyers in 2026: The GST Rebate, FHSA and the Home Buyers’ Plan

Several federal programs can reduce what a first-time buyer pays or help you save a down payment. Here is a plain summary. Always confirm the details with the Canada Revenue Agency (CRA) or your advisor.

GST rebate on new homes

A rebate of the GST on newly built homes up to $1 million (up to $50,000), phased out between $1 million and $1.5 million and not available at $1.5 million or more. It does not apply to resale homes. Reports say the legislation received Royal Assent in spring 2026. Sources differ on the exact start date for eligible purchase agreements (most say March 20, 2025), so check the CRA before you sign.

Home Buyers’ Plan (HBP)

You can withdraw up to $60,000 from your RRSP toward a first home. The CRA says that for first withdrawals made from January 1, 2026 to December 31, 2028, the 15-year repayment period starts in the fifth year after the year of withdrawal. Funds generally have to be in the RRSP for at least 90 days.

First Home Savings Account (FHSA)

Contributions up to $8,000 a year (to a lifetime limit of $40,000) and tax-free withdrawals for a first home. Unused room carries forward within limits. See the CRA page for the current rules.

First-Time Home Buyers’ Tax Credit

A $10,000 non-refundable credit claimed in the year you buy, worth up to about $1,500 in tax.

Next steps

Use the closing costs calculator to plan your upfront cash and the mortgage calculator for payments, and see our buying guide.

This is general information, not tax, legal or financial advice. Programs and limits change.

Sources: CRA: Home Buyers’ Plan · CRA: First Home Savings Account · NextHome: first-time buyer GST rebate