Buying your first home is a significant milestone in life! If you’re considering your budget and the type of home you want, here’s an update on the latest benefits available to first-time homebuyers in 2025.
New Home or Newly Built Home Mortgage with 30-Year Term
Did you know that first-time homebuyers purchasing a newly built home can access a 30-year mortgage, even with a down payment of less than 20%? This longer term reduces monthly payments compared to the typical 25-year mortgage. If you are not a first-time homebuyer, the maximum mortgage term is 25 years.
Mortgage Insurance Purchase Limit
When using mortgage insurance with a down payment of less than 20%, the maximum purchase limit has been increased from $1,000,000 to $1,500,000. This allows first-time homebuyers to consider higher-priced homes, up to $1.5M, with mortgage insurance.
Home Buyers Plan (HBP)
The Canadian government’s Home Buyers Plan allows first-time homebuyers to withdraw up to $60,000 from their RRSPs to purchase a home! Are you buying with a spouse? You can jointly withdraw up to $120,000 from both of your RRSPs. Just remember that only amounts deposited 90 days before the withdrawal can be used.
First Home Savings Account (FHSA)
The First Home Savings Account (FHSA) is a program designed to help first-time homebuyers save for a down payment while earning tax-free interest. You can contribute up to $8,000 annually, with a lifetime contribution limit of $40,000. Even if you haven’t made a deposit yet, be sure to open the account, as the maximum contribution amount can vary depending on the year.
Land Transfer Tax Refund
In Ontario, British Columbia, Prince Edward Island, and Toronto, first-time homebuyers can claim a refund on land transfer taxes. If purchasing in Toronto, you can get up to $8,475 back, and up to $4,000 in the rest of Ontario (excluding Toronto).
