Requirements for first home buyer programs in Canada in 2026

Buying your first home in Canada involves more than saving a down payment. The federal government offers several programs specifically for first-time buyers — the First Home Savings Account (FHSA), the Home Buyers’ Plan (HBP) and the First-Time Home Buyers’ Tax Credit (HBTC) — each with its own eligibility rules, documentation requirements and deadlines. Understanding which programs you qualify for and what paperwork you need can save you thousands of dollars and prevent costly delays at closing.

This guide covers the requirements in force in 2026 for the main federal first-time buyer programs, administered primarily by the Canada Revenue Agency (CRA). Provincial and territorial programs exist alongside these federal options and may have additional or different requirements; those are noted where relevant. Whether you are just starting to save or are already under a purchase agreement, the steps below will help you move forward with confidence.

What this procedure is and what it’s for

First-time home buyer programs in Canada are federal (and in some cases provincial) initiatives that reduce the financial burden of purchasing a first home. They are not a single application but a set of distinct programs, each accessed differently.

The three main federal programs

• First Home Savings Account (FHSA): A registered savings account that lets eligible Canadians contribute up to $8,000 per year (lifetime limit $40,000) and withdraw funds tax-free to buy a qualifying first home. Administered by the CRA.
• Home Buyers’ Plan (HBP): Allows eligible individuals to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) tax-free to buy or build a qualifying home. The withdrawn amount must be repaid to the RRSP over 15 years. Administered by the CRA.
• First-Time Home Buyers’ Tax Credit (HBTC): A non-refundable federal tax credit of up to $1,500 (based on a $10,000 amount at the 15% federal tax rate) claimed on your annual income tax return. Administered by the CRA.

Who it applies to

To qualify as a first-time home buyer under federal rules, you must not have owned and lived in a home as your principal place of residence at any time during the current calendar year or in any of the four preceding calendar years. This rule applies to each program individually, so always verify your eligibility for each one.

These programs apply to Canadian residents who are purchasing a qualifying home in Canada — typically a single-unit dwelling, semi-detached house, townhouse, mobile home, condominium unit or share in a cooperative housing corporation.

Official body responsible

The Canada Revenue Agency (CRA) is the primary federal body responsible for all three programs. You interact with the CRA through your annual T1 income tax return, through the My Account portal at canada.ca, and through your financial institution (for the FHSA and HBP). Provincial programs are administered by the relevant provincial ministry or agency.

Documents required

The documents you need depend on which program you are using. The lists below cover each program. Keep originals for your records; copies are generally submitted electronically through the CRA’s My Account portal or your financial institution.

For the First Home Savings Account (FHSA)

• Social Insurance Number (SIN) — required to open the account with a participating financial institution
• Government-issued photo ID (e.g., Canadian passport, provincial/territorial driver’s licence or ID card) — required by your financial institution for account opening
• Proof of Canadian residency if requested by your financial institution (e.g., a recent utility bill or bank statement showing your Canadian address)
• Written confirmation that you are a first-time home buyer — typically a declaration made to your financial institution at the time of withdrawal
• CRA Form RC725 (Request to Make a Qualifying Withdrawal from your FHSA) — completed and submitted to your financial institution when you are ready to withdraw funds to purchase a home
• Purchase agreement or written agreement to build — required to support the qualifying withdrawal; must show the property address and expected closing or possession date

For the Home Buyers’ Plan (HBP)

• CRA Form T1028 (Home Buyers’ Plan — Request to Withdraw Funds from an RRSP) — one form per RRSP account you are withdrawing from; submitted to your RRSP issuer (financial institution)
• Social Insurance Number (SIN)
• Written agreement to buy or build a qualifying home — you must have a signed purchase agreement or a written agreement to build before submitting the withdrawal request
• Confirmation that the home will be your principal place of residence — typically a declaration on the form itself
• Proof of RRSP contributions held for at least 90 days — funds must have been in the RRSP for a minimum of 90 days before withdrawal; your financial institution will verify this

For the First-Time Home Buyers’ Tax Credit (HBTC)

• Completed T1 General Income Tax Return for the year in which you closed on the home
• Proof of home purchase (e.g., a copy of the purchase agreement or the statement of adjustments from your lawyer/notary) — keep this for your records; you do not submit it with the return but must produce it if the CRA requests it
• Social Insurance Number (SIN)

Additional documents often required by lenders and notaries/lawyers (not CRA)

• Mortgage pre-approval or approval letter from your lender
• Proof of down payment (e.g., bank statements for the past 90 days)
• Employment letter and recent pay stubs or, if self-employed, two years of T1 returns and a Notice of Assessment from the CRA
• Notice of Assessment (NOA) from the CRA for the most recent tax year
• Proof of identity (two pieces, at least one government-issued photo ID)

Note: Provincial first-time buyer programs (e.g., Ontario’s Land Transfer Tax Refund, British Columbia’s First Time Home Buyers’ Program) may require additional documents specific to that province. Check with the relevant provincial authority.

Steps to complete the procedure

The steps below follow a logical order from saving to claiming your benefits. You may be using one, two or all three federal programs simultaneously.

Step 1 — Confirm your eligibility (before you start saving or buying)

Verify that you meet the first-time home buyer definition for each program you plan to use. Use the CRA’s eligibility checklists available at canada.ca. This step is done online and requires no appointment.

Step 2 — Open a First Home Savings Account (if using the FHSA)

Contact a participating financial institution (bank, credit union, trust company or insurance company). Bring your SIN and government-issued photo ID. The institution opens the account and registers it with the CRA. No CRA appointment is needed.

Step 3 — Contribute to your FHSA and/or RRSP

• Contribute up to $8,000 per year to your FHSA (lifetime maximum $40,000). Contributions are tax-deductible.
• If using the HBP, ensure your RRSP contributions have been held for at least 90 days before you plan to withdraw.
• Track your contribution room using the CRA My Account portal at canada.ca/my-cra-account.

Step 4 — Sign a purchase agreement

Once you have an accepted offer on a qualifying home, obtain a signed purchase agreement. This document is required to support both the FHSA qualifying withdrawal and the HBP withdrawal.

Step 5 — Submit withdrawal forms to your financial institution

• FHSA: Complete CRA Form RC725 and submit it to your financial institution. The institution processes the tax-free withdrawal directly to you or to your lawyer/notary in trust.
• HBP: Complete CRA Form T1028 (one per RRSP account) and submit it to your RRSP issuer. You can withdraw up to $60,000 in total across all your RRSPs.
• Both withdrawals must occur before the closing date of your home purchase (or by October 1 of the year after you sign the purchase agreement, whichever is earlier — confirm the exact deadline with the CRA for your situation).

Step 6 — File your income tax return and claim the HBTC

In the tax year you purchased the home, complete your T1 General Income Tax Return and enter $10,000 on Line 31270 (Home Buyers’ Amount). The CRA calculates the credit automatically. File online through NETFILE-certified software or through a tax professional. No separate application form is required for the HBTC.

Step 7 — Begin HBP repayments (if applicable)

Starting two years after the year of your first HBP withdrawal, you must repay a minimum of 1/15 of the total amount withdrawn each year to your RRSP. The CRA will show your required repayment amount on your annual Notice of Assessment. Repayments are tracked on Schedule 7 of your T1 return.

Estimated total time from opening an FHSA to closing on a home: varies widely, from several months to several years depending on your savings timeline. The administrative steps (submitting forms, filing your tax return) each take a few hours.

Fees and timelines

• FHSA account opening fee: None charged by the CRA; your financial institution may charge account maintenance fees — confirm with your institution before opening.
• HBP withdrawal fee: None charged by the CRA; your financial institution may charge a fee to process the RRSP withdrawal — confirm with your institution.
• HBTC: No application fee; the credit of up to $1,500 is applied against federal income tax owing when you file your return.
• FHSA contribution room: $8,000 per year; unused room from the previous year carries forward by $8,000 (maximum one year of carry-forward), up to a lifetime limit of $40,000.
• HBP withdrawal limit: Up to $60,000 per eligible individual (as of 2024 budget changes, confirmed for 2026); couples purchasing together can each withdraw up to $60,000 for a combined maximum of $120,000.
• HBP repayment period: 15 years, beginning 2 years after the calendar year of the first withdrawal.
• FHSA qualifying withdrawal deadline: Funds must be withdrawn to buy a qualifying home before December 31 of the year you turn 71, or within 15 years of opening the account, whichever comes first. If not used for a home purchase, the account must be closed and funds transferred to an RRSP or RRIF, or withdrawn as taxable income.
• HBTC claim deadline: Claimed on the T1 return for the tax year in which the home purchase closes; the standard filing deadline is April 30 of the following year (June 15 for self-employed individuals, though any balance owing is still due April 30).
• CRA processing time for tax returns filed online: Generally 2 weeks for a refund; assessments are typically issued within 2–8 weeks.
• Provincial land transfer tax refunds (where applicable): Processing times vary by province — typically 4–8 weeks after application.

Common mistakes and how to avoid them

• Withdrawing RRSP funds before the 90-day holding period: Contributions made to your RRSP less than 90 days before the HBP withdrawal do not qualify. Plan your contributions well in advance of your expected closing date to avoid having part of your withdrawal treated as taxable income.
• Missing the purchase agreement requirement: Both the FHSA qualifying withdrawal and the HBP withdrawal require a signed written agreement to buy or build before the withdrawal is processed. Requesting funds before you have a signed agreement can disqualify the withdrawal.
• Claiming the HBTC on the wrong tax year: The credit must be claimed in the tax year the home purchase closes (i.e., the date legal ownership transfers), not the year you signed the offer. If your closing date is December 31, 2026, you claim it on your 2026 return, not your 2025 return.
• Exceeding FHSA annual contribution limits: Contributing more than $8,000 in a calendar year results in a 1% per month tax on the excess amount. Monitor your contributions through CRA My Account and keep records of all deposits.
• Assuming provincial programs have the same rules: Provincial first-time buyer programs (land transfer tax rebates, down payment assistance) have their own eligibility criteria, income limits and deadlines. Do not assume federal eligibility automatically qualifies you for provincial benefits.

Frequently asked questions

Can I use both the FHSA and the HBP to buy the same home? Yes. As of 2024, the federal government confirmed that eligible first-time buyers can use both the FHSA and the HBP for the same qualifying home purchase. This means you could potentially combine up to $40,000 from an FHSA and up to $60,000 from an RRSP (per person) toward your down payment.

What happens to my FHSA if I do not buy a home? If you do not use your FHSA to buy a qualifying home within 15 years of opening the account (or by December 31 of the year you turn 71), you must close the account. You can transfer the funds to your RRSP or RRIF without affecting your RRSP contribution room, or withdraw the funds as taxable income. The CRA provides guidance on this process through My Account.

Do I need to repay the FHSA withdrawal like the HBP? No. A qualifying FHSA withdrawal is completely tax-free and does not need to be repaid. This is a key difference from the HBP, where the withdrawn RRSP funds must be repaid over 15 years.

What qualifies as a “first-time home buyer” if I owned a home years ago? Under federal rules, you are considered a first-time home buyer if you have not owned and occupied a home as your principal residence at any point during the current calendar year or the four preceding calendar years. For example, if you last owned a home in 2020 and it is now 2026, you may qualify again. The CRA applies this rule on a calendar-year basis.

Where do I go if I have questions about my specific situation? Contact the Canada Revenue Agency (CRA) directly. You can use the CRA My Account portal at canada.ca, call the CRA individual tax enquiries line at 1-800-959-8281, or consult a registered tax professional or mortgage advisor familiar with Canadian first-time buyer programs.

Before you proceed — verify current requirements

The most important documents to have ready are your Social Insurance Number, a signed purchase agreement, and the relevant CRA withdrawal forms (RC725 for the FHSA, T1028 for the HBP). Your first concrete step is to log in to or create a CRA My Account at canada.ca/my-cra-account to check your RRSP contribution room, FHSA contribution room and any carry-forward amounts.

Program rules, contribution limits and eligibility criteria can change. Always verify the most current requirements directly with the Canada Revenue Agency (CRA) at canada.ca or by calling 1-800-959-8281 before making financial decisions. For provincial programs, contact the relevant provincial ministry of finance or revenue agency in your province or territory.