First Time Home Buyer Incentives in Canada 2024
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First Time Home Buyer Incentives in Canada 2024

ByStan S.

There are four main incentive programs for first-time home buyers in Canada:

Land transfer tax rebates, which rebate some or all of your land transfer tax.

Some municipalities have down payment assistance programs (DPAPs) for first-time homebuyers.

The Home Buyers’ Plan which allows you to withdraw up to $60,000 (since April 16, 2024) from your Registered Retirement Savings Plan (RRSP) without any penalties or taxes.

The First Home Savings Account (FHSA), which allows you to save and invest tax-free for your home down payment.

The Government of Canada First-Time Home Buyer Incentive Has Been Discontinued

Effective March 21, 2024, the First-Time Home Buyer Incentive has been discontinued. All applications will need to be approved by March 31, 2024.

The cancellation of the First-Time Home Buyer Incentive stems from a combination of factors that critically undermined its effectiveness. Primary among these was poor uptake, as the incentive failed to attract the anticipated number of applicants that were willing to share their home’s equity, and possible home appreciation, with the government. Many prospective first-time homeowners also found the requirements overly restrictive, particularly around income limits and borrowing limits, that reduced the eligibility pool.

First Time Home Buyer Calculator for different provinces

First-Time Home Buyer Programs and Rebates in Canada

There are many programs available for first-time home buyers in Canada. They help make housing more affordable and accessible to many Canadians looking to buy their first home. While many regions may offer their own incentives, there are three programs that are accessible to most Canadians:

Programs like the First Home Savings Account (FHSA) and the Home Buyers’ Plan are available to Canadians nationwide. Others like land transfer tax rebates can vary by province and municipality.

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