Canada has a handful of federal programs aimed at first-time buyers. None of them replace a mortgage — they reduce how much you need to save, or how much tax you pay while saving — and a mortgage agent who works with first-time buyers regularly will know how to layer them together for your situation.
A registered account that lets eligible first-time buyers save for a down payment with tax-deductible contributions and tax-free growth and withdrawals, similar in spirit to an RRSP and TFSA combined for this one purpose.
Annual and lifetime contribution limits apply and are set by the federal government — confirm the current limits with your agent or directly with the CRA, since they're the kind of detail that's easy to get out of date.
Lets eligible first-time buyers withdraw from their RRSP toward a down payment without immediate tax, as long as the amount is repaid over time under the program's rules.
Like the FHSA, the exact withdrawal limit changes periodically — check the current figure before relying on it.
Several provinces and some municipalities offer a rebate or reduction on land transfer tax for first-time buyers. Whether one applies to you depends on the property's location, so this is worth asking your agent about specifically.
These programs can usually be combined, but the rules interact in ways that are easy to miss on your own. A good first step is asking a verified agent who regularly works with first-time buyers to walk through which of these actually apply to your situation.
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