If you’ve been surrounding the idea of buying your first home in Canada, then you might notice “First-time home buyer” It doesn’t always mean you think it works. Different federal and provincial programs define it in different ways, which can make things quickly messy.
We work with many clients who have tripped over this. Someone will tell me that they are first-time home buyers because they never bought a home in Canada and just found that the heirs from the previous home in another country were disqualified here. Or the other party again Where appropriate.
So, let’s break it down. Here are the ways Canadians often rely on to define “first-time home buyers”: Ontario Land Transfer Tax Discount, RRSP Home Buyer Program (HBP), and First Home Savings Account (FHSA).
How does Ontario define first-time home buyers for land transfer tax discounts?
If you are buying real estate in Ontario, the Land Transfer Tax (LTT) discount may be the first plan you will hear about. It can save you up to $4,000 in provincial land transfer tax, and another $4,475 in Toronto Municipal Strip Transfer Tax if you buy in the city.
But the qualification rules here are Strict.
The endless rules
qualifications:
- You must be at least 18 years old
- You must have no way Own a house or any interest anywhere in the world
- You must live at home as your primary residence within nine months of purchase
- And, this is a kicker, your spouse or common law partner will never own a house when you are together
Finally, I tripped a lot of couples a little bit. If your partner owns a home before getting together, then you know it well. But if any of you own a property in a relationship with someone else, even if it is overseas, you are disqualified.
I have to convey disappointing news more than once. This is a demanding route, but it is the rule.
Real estate lawyer Maria Berenbaum Note:
“The latest addition is that the purchaser must be a Canadian citizen or have permanent resident status. We recently had a document where the spouse bought a house together – they were both first-time home buyers, but she didn’t have a PR yet, so they only had half the rebate. Once she has obtained the paper, she can apply for a kickback within 30 days of confirming her residence rights, which is a short window of opportunity. ”
Maria went on to say that she often hears comments like this: “How do they know if I have something in X? The answer is that all government agencies are connected to each other.
How does the RRSP homebuyer plan define first-time home buyers?
HBP is a popular option for buyers who want to take advantage of RRSP savings ($60,000 per couple) to help with down payments.
Thankfully, the plan is more forgiving than LTT rebates.
Four years of retrospective rules
qualifications:
- You must not be able to live in that year or the first four calendar years (or your spouse/common law partner) (or your spouse/common law partner)
- The agreement you need to sign to buy or build a qualified home
- You must intend to place the home in your primary residence within one year
- You must be a resident of Canada when you withdraw and when you purchase your home
So yes, even if you have the property before, you can technically qualify again. As long as you (and your current spouse or partner) Living in it In those four years windows, you may still be eligible.
I call it the “new start” clause. This is especially useful for people who have sold their homes a few years ago and have been renting them ever since.
How does the first home savings account define first-time home buyers?
FHSA is the new kid on the street, and honestly, it’s a game-changer. It combines RRSP and TFSA tax allowances, allowing you to donate up to $40,000 on your first home purchase.
But, like HBP, it also uses the version of the four-year review rule.
Similar to HBP, but with Ownership and occupancy
Open and use FHSA:
- You must be between 18 and 71 years old and are a Canadian resident
- You must own or jointly own or co-owned or reside in a qualifying home that you must own or co-owned or reside in a calendar year prior to opening FHSA or during the first four calendar years before the first four calendar years
- The rule also considers the property owned by the spouse or common law partner you reside in.
FHSA defines first-time home buyers almost the same definition as HBP, but there is one nuance: the timing begins before opening an account. This means you have to reach the definition at that time Open FHSA, not only you use it.
This is crucial. We tell our customers: If you even thinking Regarding buying your first home in the next few years, open the FHSA as soon as possible instead of later, even if the contribution is minimal to start that qualification clock.
How to compare definitions?
Let’s stack them side by side so you can see where things are aligned and where they are not.
| program | Never owned any place | Four years of review | Including spouse/partner ownership | Notable limitations |
| LTT Rebate (ON) | Yes | No | Yes | Have (anywhere) = Disqualified |
| HBP (RRSP) | No | Yes | Yes | Based on 4-year rules Occupancy |
| FHSA | No | Yes | Yes | Based on 4-year rules Ownership + Occupancy |
Key points? LTT rebates are the strictest. HBP and FHSA are more flexible, especially if you have already rested from your home or have recently separated from your partner who owns your home.
Our advice
Don’t think you are (or not) a first-time buyer until we actually look at the details. Each program plays according to its own rules, timing, relationship history, and past ownership.
Here is what we recommend:
- Talk to a Mortgage expert Early: They can guide you through these definitions based on your personal history
- Open FHSA early If there is a chance to buy in the next few years. You’ll be glad you did it
- Be honest with yourself (and your partner) Regarding your ownership history, even a vacation property that could be of a possible quantity
- Don’t put money on the table. We have seen clients qualify for benefits they don’t know they are entitled to, while others missed it because they made assumptions
Is the status of the first-time buyer for mortgage purposes?
In fact, for the insured mortgage able Whether you are a first-time home buyer.
Duplicate buyers are eligible for 30 years of mortgage insurance only when purchasing a new home.
Whether they buy new or resold homes, first-time home buyers are eligible.
Duplicate buyers of resale (existing) homes do not qualify for 30-year amortization of mortgage insurance, and in these cases, there are still up to 25 years.
Whether you are buying your first home or just buying your first home for a while, knowing that the plans you are eligible for can save thousands of dollars and make your homeowner’s journey smoother.
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Last modified: September 11, 2025
