First-Time Home Buyer
Quick Definition
A buyer who has not owned a home in the last 4 years, qualifying for special programs.
Full Explanation
In Canada, a first-time home buyer is generally someone who has not owned and occupied a principal residence in the last 4 calendar years. First-time buyers have access to several programs: the Home Buyers' Plan (up to $35K RRSP withdrawal), the First Home Savings Account (FHSA) for up to $40K in tax-free savings, the First-Time Home Buyer Incentive (discontinued 2024), land transfer tax rebates (available in ON, BC, and some municipalities), and the First-Time Home Buyers' Tax Credit (HBTC) of $10,000 ($1,500 tax savings). Some programs have additional eligibility criteria.
Related Terms
Home Buyers' Plan (HBP)
Allows first-time buyers to withdraw up to $35,000 from their RRSP tax-free for a home purchase.
FHSA (First Home Savings Account)
A new registered account combining RRSP and TFSA benefits specifically for first-time home buyers.
Down Payment
The upfront cash you pay toward a home purchase, expressed as a percentage of purchase price.
Land Transfer Tax (LTT)
A provincial tax paid when purchasing real property, calculated as a percentage of purchase price.
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