Six Government of Canada programs to support homebuyers in 2026

This article has been updated from a previous version in January 2026

Buying a home in Canada isn’t getting any easier. Inflation may have cooled to 2.2% as of October 2025, thanks to falling gas prices at the time, but everyday costs are still climbing— cell phone plans, insurance, and groceries are all more expensive.

The housing market has felt the squeeze too. After ten straight interest rate hikes from the Bank of Canada, affordability remains a challenge. Still, there’s movement: the Canadian Real Estate Association expects home sales to rise 7.7% in 2026 to about 509,000 units —the busiest year since 2021, though still shy of record highs.

Prices are also forecast to edge up 3.2%, bringing the average home to $698,622, marking the sixth year in a row near the $700,000 mark.

In a market like this, every dollar counts. Fortunately, the federal government offers programs that can make buying a home a little easier.

Here are some of the key incentives available to help Canadians get into the market.

First Home Savings Account (FHSA)  

A First Home Savings Account (FHSA) is a government-registered plan designed for saving towards your first home purchase.  

It offers the dual benefit of tax-deductible contributions and tax-free savings, which means you won't pay taxes on deposits, nor will you pay taxes on the interest earned or the growth of your savings within the account. This can boost your savings over time. 

There’s an annual contribution limit of $8,000 a year to a lifetime limit of $40,000.

To open an FHSA, you must meet the following eligibility criteria:

• Be a resident of Canada.
• Be at least 18 years old and under 71 as of December 31 of the year you open your FHSA.
• Qualify as a first-time home buyer, meaning you have not lived in a home you owned (or that your spouse/common-law partner owned) in the current year or the previous four calendar years.

Read more: With prices dropping, is this a good time to buy a condo in Toronto?

Home Buyers' Amount  

One of the benefits of being a first-time buyer is that when tax season rolls around, you can apply for a healthy deduction. The Home Buyers’ Amount — also referred to as the first-time homebuyers’ tax credit — allows first-time home buyers in Canada to claim a $10,000 tax credit for the purchase of a qualifying home, which includes existing homes and those under construction.    

The amount you get back from the CRA depends on the lowest personal income tax rate for the year you bought your home.  For example, for 2025, the rate is 14.5%, which results in a maximum credit of $1,450. 

To claim this tax credit as a first-time homebuyer in Canada, fill out line 31270 on your yearly income tax return.   

Read more: Larger homes are top moving motivator amid economic uncertainty: Survey 

Home Buyers' Plan (HBP)   

If you have an RRSP and you’re buying your first home, the Home Buyers’ Plan lets you take money out of your savings without paying tax. You can withdraw up to $60,000 to put toward your purchase.

Normally, you start paying that money back in the second year after your withdrawal and have 15 years to finish. But if you took money out between January 1, 2022, and December 31, 2025, you get extra time. In those cases, repayments don’t start until the fifth year after your withdrawal. For example, if you withdrew funds in 2022, your first repayment year will be 2027. You can also pay back the full amount anytime.

Read next: Which real estate contingencies should you include in your offer?

GST/HST New Housing Rebate   

If you’re buying a newly built home or building one yourself, you may qualify for the GST/HST New Housing Rebate. This rebate refunds part of the GST or the federal portion of the HST you paid on your home.

To apply, fill out the New Housing Rebate Application for Houses Purchased from a Builder (Form GST190) or, if you built your own home, Form GST191, and submit it to the Canada Revenue Agency. Ontario residents also need to complete the Ontario Rebate Schedule. Supporting documents may be required, especially if GST or HST wasn’t charged on your invoice.

Note: The government has proposed an additional GST/HST rebate for first-time home buyers, which would eliminate or reduce the federal tax on homes up to $1.5 million. This rebate is not yet available and will only apply if the legislation passes.

Learn more: How do real estate commissions work in Canada

CMHC Eco Plus  

An energy-efficient home doesn’t just help the environment — it also nets you some savings. 

If your mortgage is CMHC-insured and your newly purchased house or condo is built to certain energy standards, you can claim a CMHC Eco Plus rebate of up to 25% on your mortgage loan insurance premium. 

To qualify, the home must be newly built and never occupied, and it needs to meet recognized energy-efficiency standards such as ENERGY STAR®, LEED®, R-2000, Passive House, or achieve an EnerGuide rating showing it uses at least 20% less energy than a typical new build.

You have up to two years after your mortgage closes to apply. Submit the application along with your energy certificate and supporting documents to CMHC. Processing can take several weeks, so plan ahead.

Related: 10 questions to ask when getting a mortgage 

Regional down payment assistance programs   

If traditional homebuying incentives aren’t accessible due to income limits, you still have options. Various provincial and municipal programs provide down payment assistance to help new homeowners.

In Prince Edward Island, for instance, eligible buyers can get a conditionally interest-free loan of 5% of the purchase price. And in Manitoba, the Rural Homeownership Program has a pathway that makes it easier to purchase a home outside of major cities. 

Canada’s homebuying programs can significantly help lower the amount you’ll pay for your home. Make sure to consider all homeownership assistance programs in your province to ensure you’re not leaving any money on the table when it comes time to buy a home.

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