top of page

First Time Home Buyers

Being a first-time home buyer can be both exciting and stressful – Home Ownership is becoming increasingly difficult.

High Inflation, high home prices, and high interest rates is our current reality.

The First time Home Buyer Program offers some benefits to help. 

The First Home Savings Account (FHSA)

You may be eligible to save up to $40,000 tax-free to buy a home with an annual contribution limit of $8,000.

Learn more about the First Home Savings Account.

The Home Buyers’ Plan (HBP)

You may withdraw up to $35,000 from your registered retirement savings plan (RRSP) tax-free to buy your first home.

Budget 2024 increased the HBP withdrawal limit from $35,000 to $60,000. This limit applies to withdrawals made after April 16, 2024. 

How Much Downpayment do I need as a First Time Home buyer?

The amount you save for your home purchase down payment doesn’t depend on your status as a first-time home buyer. However, in Canada, home buyers must have a minimum percentage of the home’s purchase price on hand. The amount depends on how much the home costs:

  • If the purchase price is less than $500,000, the minimum down payment is 5%.

  • If the purchase price is between $500,000 and $1,499,999 (as of December 15, 2024), the minimum down payment is 5% of the first $500,000, and 10% of any amount over $500,000 to $1,499,999.

  • If the purchase price is $1,500,000 or more, the minimum down payment is 20%

How do I qualify as a First Time Home Buyer?

  • You are a Canadian resident at the time you withdraw any funds from a registered government plan for the use of a first-home purchase

  • You must have not, at any time in the current calendar year or preceding four calendar years, lived in a home you owned, or jointly owned, or that your spouse or common-law partner owned or jointly owned.

  • However, you can regain your first-time home buyer status in the case your marriage or common-law relationship breaks down, as long as you have lived separate and apart from your former partner for at least 90 days, unless you start to live in a new principal residence with a new spouse or common-law partner during that time frame.

Did you know:

As of December 15, 2024, all first-time home buyers in Canada are able to extend their mortgage amortization period to 30 from the previous maximum of 25, regardless of whether they’re an insured or uninsured borrower.

The maximum purchase price for insured mortgages is now $1.5 million, from the previous $1 million, for all high-ratio borrowers including first-time home buyers.

Mortgage Pre-Approval

Get a quick response to your online application

Connect with a specialist

A mortgage specialist will reach out to you

bottom of page