First-Time Home Buyer Programs in Canada: What You Need to Know in 2025 🏡🚀

If you're a first-time home buyer in Canada, you're likely wondering what support is available to help you get into the housing market. With home prices rising and policy changes happening frequently, it's crucial to stay informed.

In this post, we break down the top programs and benefits available to first-time buyers in 2025, what we love about them, what falls short, and which options might actually help you make your first purchase.

FHSA (First Home Savings Account) 💳📉

Launched at the end of 2023, the First Home Savings Account blends the best features of an RRSP and TFSA:

• Contribute up to $8,000 per year, max $40,000 over time

• Contributions are tax-deductible like an RRSP

• Withdrawals for home purchases are tax-free like a TFSA

• Funds can be invested freely (stocks, ETFs, mutual funds, etc.)

Pros:

• Immediate tax savings and flexibility

• You can open an account with as little as $2

• Easy to combine with other programs like RRSP and PTT exemption

Cons:

• $8,000 per year limit may be too slow for high-priced markets

• Missed by many buyers who assume they need the full $8,000 upfront

Verdict: Excellent long-term benefit. But it would be even more helpful if buyers could front-load $40,000 in one go.

RRSP Home Buyers' Plan 💼🙋

The RRSP Home Buyers' Plan (HBP) allows you to borrow from your RRSP to buy a home:

• Withdraw up to $60,000 (up from $35,000 previously)

• Must be paid back within 20 years

• RRSP contributions are tax-deductible

Pros:

• No annual contribution limit for withdrawals

• Major tax savings for mid-to-high earners

• Can combine with employer RRSP matching programs

Cons:

• Must wait 90 days after deposit to withdraw

• Repayment is mandatory over 20 years

• Not all RRSPs are eligible (e.g. locked-in plans)

Verdict: A classic and flexible option, especially if your employer matches RRSP contributions.

Property Transfer Tax (PTT) Exemption 🛌💰

As of 2024, the PTT exemption has expanded:

• Full exemption for homes up to $835,000 (previously $500,000)

• Partial exemption up to $860,000

• Applies to first-time buyers only

Bonus:

• New construction homes (not just first-time buyers) now qualify for exemption up to $1.1 million

Pros:

• Huge savings on tax (often $8,000+)

• Long overdue update given BC home prices

Cons:

• Odd price cap choices (e.g. $835K instead of $850K or $1M)

• Not applicable outside BC

Verdict: The most immediate and tangible benefit for BC-based buyers.

30-Year Amortization for New Builds ⏳🏠

This new measure allows 30-year amortizations for insured mortgages (under 20% down payment), but only on new builds:

• Applies to purchases under $1M

• Must be your primary residence

• Starts August 2024

Pros:

• Reduces monthly payments, improving affordability

• May help some buyers qualify more easily

Cons:

• Only available on new construction

• Delays in delivery (2-4 years typical for pre-sales)

• Most pre-sales still require 15-20% down

Verdict: Helpful for a niche group, but won't shift the market significantly.

CANCELLED: Shared Equity Down Payment Program 🔒🧐

This federal program aimed to assist with down payments by matching 5% equity in your purchase, but was widely misunderstood:

• Only helped if you already had 5% down

• Government took an equity stake in your home

• Uptake was minimal and the program was cancelled in 2024

Verdict: A failed initiative. Too complicated and offered little practical help.

Best First-Time Buyer Program in 2025? 🌟🏡

After weighing the pros and cons, here’s our pick:

Top Pick for BC Buyers:

• ✨ PTT exemption up to $835,000 (or $1.1M for new builds)

Best Long-Term Savings Tool:

• 📉 FHSA – simple, flexible, and tax-friendly

Still Useful for Tax Planning:

• 💼 RRSP Home Buyers' Plan

Not Worth Waiting For:

• ⏳ 30-Year amortization (too limited in scope)

• ❌ Shared equity program (RIP)

Final Advice for First-Time Home Buyers 📅📲

If you're planning to buy in the next 1-2 years, use what’s available, but don’t rely solely on government help. Your best strategy is still:

• Start saving early

• Use FHSA, RRSPs, or both if you can

• Get a pre-approval from a trusted mortgage broker

📞 Need help navigating your options?
Book a free call with me to get a tailored plan and see how these programs can work together for your situation.

If you’re buying or selling in Surrey, Langley, or the Greater Vancouver area, I’d love to help. If you're looking for a trusted mortgage professional, I'm also able to make a suggestion. Just send me an email and I'd be happy to connect you with one.

1️⃣ 𝐆𝐞𝐭 𝐚 𝐌𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐏𝐫𝐞-𝐀𝐩𝐩𝐫𝐨𝐯𝐚𝐥: https://bit.ly/mortgage-preapproval-now

2️⃣ 𝐁𝐨𝐨𝐤 𝐀 𝐂𝐚𝐥𝐥: https://calendly.com/alexdunbar

3️⃣ 𝐅𝐫𝐞𝐞 𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝𝐬

🔹Buyers Guide: https://bit.ly/Free-Ultimate-Buyers-Guide

🔹Sellers Guide: https://bit.ly/Ultimate-Sellers-Guide

🔹Pre-Sales Guide: https://bit.ly/Ultimate-Guide-to-Buying-a-Pre-Sale

🔹Search for Homes: https://discoverhomesfirst.com/listing