2025 First-Time Homebuyer Grants in Canada: What You Need to Know

Are you planning to buy your first home? It's both thrilling and overwhelming. Fortunately, you don't have to do it by yourself. In Canada, there are first-time homebuyer grants and assistance programs that can help you pay for your down payment and move one step closer to your ideal home.

Let's simplify this to help you understand what's available and how to utilise it.

What Is a First-Time Homebuyer Grant?

You can buy your first home with the help of a first-time homebuyer grant. The federal or provincial governments usually offer it. The best thing is you don’t have to pay it back.

These usually aim to:

• Lower your down payment costs
• Lower your mortgage amount
• Make it easier to buy a home

Who Can Get a First-Time Homebuyer Grant in Canada?

To be eligible for the majority of first-time homebuyer grants/incentives, you must meet the following requirements:

• You have to be a first-time buyer who has never purchased a property before.
• You intend to stay in the house rather than rent it out.
• You make a specific amount of money (program-specific limits apply).
• You're buying a house in Canada.

Every program has its own set of regulations, so make sure you know what is needed in your location.

Top First-Time Homebuyer Grants in Canada (2025 Edition)

1. First-Time Home Buyers’ Tax Credit (HBTC) – Federal

After you buy a home, you may put $10,000 back into your pocket with this tax benefit.

• You could save up to $1,500 in taxes
•  You may claim it on your tax return instead of having to apply separately
• Accessible nationwide

Tip: To save even more money, combine this with other grants.

2. First-Time Home Buyer Incentive (FTHBI)

This is not exactly a grant, but it lowers your monthly payments. The government gives you 5% or 10% of your home’s price to use as your down payment.

• A household income of less than $120,000 is required
• Max mortgage is 4x your income
• When you sell or refinance, you pay back the government share

Consider this a shared investment from the government to reduce your mortgage burden.

3. Provincial & Territorial First-Time Homebuyer Grants

Let’s look at a few grants and programs for first-time homebuyers across provinces:

Ontario

• Land Transfer Tax Refund: Up to $4,000 refund on land transfer tax
• Must be 18+ and have never owned a home anywhere in the world
  
  

British Columbia

• First Time Home Buyer's Program: Reduces or eliminates property transfer tax for homes under $500,000
  
  

Alberta

• No provincial land transfer tax = automatic savings
• Municipal programs (like those in Edmonton or Calgary) may offer additional support
  
  

Quebec

• Home Ownership Program (Montreal): Up to $15,000 in financial support for young families buying in the city
  

Nova Scotia, Manitoba, PEI, and others

• Always check the website of your city or region for smaller initiatives or localised support.

What About First-Time Homebuyer Down Payment Grants?

There are a few programs designed specifically to help you with your down payment.

The Home Buyers’ Plan (HBP)

This allows you to withdraw up to $60,000 tax-free (as of 2025) from your RRSP to use as your down payment!

• Repay it over a period of 15 years
• Must be a first-time homebuyer
• Use with other grants and incentives

How to Apply for a First-Time Homebuyer Grant in Canada

Step 1: Verify Your Eligibility

• Check income limits
• You’ve never owned a home before
• Have your credit, savings, and ID ready
  

Step 2: Choose Your Program

• Combine federal and provincial support
• Utilize tools like Rateswise mortgage calculators to see how much you can afford
  
  

Step 3: Apply

• For tax credits: Use your tax return to apply

• For incentive programs: Apply while you’re getting a mortgage

• For city or provincial grants: Apply directly with the program
  
  

Step 4: Keep Your Documents

• Keep your grant approval letters with you at all times
• They can be required for taxes or upcoming mortgage procedures.
  
  

Pros & Cons

Here’s a quick look at what to expect:

Pros

• Free money = less debt
• Lower upfront costs
• Can be combined with other benefits
  

Cons

• Some grants have repayment conditions
• Income limits may apply
• Rules can change yearly
  

FAQs

What is the income limit for first-time homebuyer grants?

It varies depending on the program. The 2025 income cap for the First-Time Home Buyer Incentive is $120,000.

Do I have to pay back a first-time homebuyer grant?

Usually not, but when you sell or refinance, you have to pay back the government's share under programs like the FTHBI.

Can I use more than one program at once?

Yes! If you are eligible, you may combine federal, provincial, and local grants. That's how you get the most out of it.

What if I buy with someone who already owns a home?

If you are the sole first-time buyer listed on the application, you can still be eligible. Some programs allow it.

Are these grants available for new builds and resales?

Yes, most of the programs cover both. Always look for exceptions in the fine print.

Final Thoughts: 

Buying your first home doesn’t have to feel impossible. With the right-first-time homebuyer grants and support programs, you can reduce your costs and step into homeownership with confidence.

Want to see how much you can afford? Contact a mortgage expert at Rateswise.com