RRSP Home Buyers' Plan (HBP)
Calculate your mandatory 15-year repayment schedule and see the tax penalty if you miss a payment.
(If you skip a year, this amount gets added to your tax bill!)
Canada First-Time Home Buyer Incentive (FTHBI): Crucial Update
⚠️ Official Program Update: The Government of Canada officially discontinued the First-Time Home Buyer Incentive (FTHBI) on March 21, 2024. No new applications are being accepted. Our historical calculator below shows how the shared-equity program used to function, but buyers must now rely on modern alternatives like the FHSA and HBP.
For years, the FTHBI helped Canadians enter the housing market by offering a 5% or 10% shared-equity loan from the government to boost their down payment. However, due to complex repayment rules and strict borrowing limits that didn’t align with soaring home prices in Toronto and Vancouver, the program was permanently canceled. Today, first-time buyers must pivot their strategy to newer, more efficient tax-sheltered accounts.
How to Fund Your Down Payment Today (FTHBI Alternatives)
Even though the FTHBI is gone, the Canadian government offers three powerful programs that you should be calculating and utilizing instead:
- First Home Savings Account (FHSA): This is the new gold standard. You can contribute up to $8,000 per year (up to a $40,000 lifetime limit). Contributions are tax-deductible (like an RRSP), and withdrawals for your first home are entirely tax-free (like a TFSA).
- The Home Buyers’ Plan (HBP): The government recently expanded this program. You can now withdraw up to $60,000 (previously $35,000) tax-free from your Registered Retirement Savings Plan (RRSP) to buy your first home. You have up to 15 years to repay it into your RRSP.
- Land Transfer Tax Rebates: If you are a first-time buyer in Ontario, British Columbia, or Prince Edward Island, you are eligible for thousands of dollars in provincial rebates on your closing costs. Toronto buyers get an additional municipal rebate.