First-Time Home Buyer Programs in Canada You Should Know

If you are buying your first home in Saskatchewan this year, there is a good chance you are leaving money on the table. Between federal savings accounts, RRSP withdrawals, tax credits, and provincial rebates, first-time buyers in Canada have access to programs that can put thousands of dollars back in your pocket—but only if you know about them and use them correctly.

I walk Saskatchewan buyers through these programs every week, and I still meet people who had no idea half of them existed. This guide covers every major incentive available in 2026 so you can stack them together and maximize your savings.

First-time buyers who combine the First Home Savings Account, the Home Buyers’ Plan, and available tax credits can save over $15,000 in taxes and fees on their first purchase—and that is before provincial programs.

First Home Savings Account (FHSA)

The First Home Savings Account is the most powerful savings tool available to first-time buyers in Canada right now. Launched in April 2023, it combines the best features of an RRSP and a TFSA into one account designed specifically for buying your first home.

How It Works

• Contribution limit: $8,000 per year, up to a lifetime maximum of $40,000
• Tax deduction: Every dollar you contribute reduces your taxable income, just like an RRSP
• Tax-free growth: Your investments grow tax-free inside the account, just like a TFSA
• Tax-free withdrawal: When you use the funds for a qualifying home purchase, you pay zero tax on the withdrawal

That is a triple tax advantage—deduction going in, tax-free growth, and tax-free coming out. No other registered account in Canada offers all three.

Key Rules to Know

You can carry forward up to $8,000 of unused contribution room to the next year, so if you missed last year you can contribute $16,000 this year. However, the account must be open for at least one year before you can make a qualifying withdrawal.

If you do not use the funds for a home purchase, you can transfer the balance to your RRSP or RRIF without affecting your contribution room. This means there is very little downside to opening one—even if your plans change.

My advice: If you are even thinking about buying in the next few years, open an FHSA now. The clock on that one-year minimum holding period starts the day you open the account, not when you contribute. Use our mortgage calculator to estimate your target purchase price, then work backwards to set your savings goal.

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan lets you withdraw money from your RRSP to put toward your first home purchase—tax-free. This program has been around for decades and received a significant boost recently.

2024 Updates Still in Effect

• Withdrawal limit: Up to $60,000 per person (increased from $35,000 in April 2024)
• Couples: Both partners can each withdraw $60,000, for a combined $120,000
• Repayment: You have 15 years to repay the withdrawn amount back to your RRSP
• Grace period: If you made your first withdrawal between January 1, 2022 and December 31, 2025, you get a three-year grace period before repayment begins (repayment starts in year five instead of year two)

How to Use FHSA and HBP Together

Here is where it gets exciting. You can use both the FHSA and HBP on the same purchase. That means a couple could potentially access:

• $40,000 each from FHSA = $80,000
• $60,000 each from HBP = $120,000
• Combined total: up to $200,000 toward a down payment

That is a game-changer for Saskatchewan buyers saving for their first home. Even if you are not maxing out both programs, combining them gives you far more flexibility than relying on one alone.

For more on how much you actually need for a down payment, check out my detailed guide.

First-Time Home Buyers’ Tax Credit (Federal)

The federal First-Time Home Buyers’ Tax Credit provides a non-refundable tax credit of $10,000, which translates to up to $1,500 back on your federal taxes. This was doubled from $5,000 in recent years.

You can claim it on your tax return for the year you purchased your home. Both you and your spouse can split the credit, but the combined total cannot exceed $10,000.

Who Qualifies

• You or your spouse must not have owned a home in the current year or any of the four preceding years
• You must intend to live in the home within one year of purchase
• The home must be registered in your name

This credit is automatic when you file your taxes—just do not forget to claim it. It is free money that many buyers overlook.

First-Time Home Buyers’ GST/HST Rebate

If you are purchasing a newly built home, you may qualify for the enhanced First-Time Home Buyers’ GST/HST Rebate. This applies to new home purchases made on or after March 20, 2025, and before 2031.

What You Can Get

• Federal rebate: Up to $50,000 in GST savings on new homes priced up to $1,000,000
• The rebate is designed to make new construction more accessible for first-time buyers

This rebate applies specifically to new homes and does not cover resale properties. If you are considering a new build in Saskatchewan, this can represent significant savings on top of the provincial PST rebate.

Saskatchewan-Specific Programs

Beyond the federal programs, Saskatchewan has its own incentives that stack on top of everything listed above.

Saskatchewan First-Time Home Buyers’ Tax Credit

Saskatchewan offers a provincial first-time home buyers’ tax credit worth up to $1,575. This is calculated at the provincial tax rate of 10.5% on the first $15,000 of your home purchase price.

This is separate from the federal credit, so you can claim both. Combined, the federal and provincial credits put roughly $3,075 back in your pocket.

PST Rebate on New Construction

If you buy a newly built home in Saskatchewan, you can get up to 42% back on the 6% PST you paid. The full rebate applies to homes priced under $450,000, with a reduced rebate for homes between $450,000 and $550,000.

For many Saskatchewan buyers, this can mean thousands of dollars in savings on new builds. Combined with the federal GST rebate, new construction becomes significantly more affordable.

How Saskatchewan Stacks Up

Here is what makes Saskatchewan attractive for first-time buyers: there is no land transfer tax in this province. While buyers in Ontario, British Columbia, and other provinces pay thousands in land transfer taxes, Saskatchewan buyers avoid this cost entirely.

Use the land transfer tax calculator to see what you would pay in other provinces—then appreciate that Saskatchewan saves you that expense.

30-Year Amortization for First-Time Buyers

Starting December 15, 2024, the Canadian government extended mortgage amortization periods to 30 years for first-time buyers and purchasers of new builds. The insured mortgage cap also increased to $1.5 million.

What This Means for You

• Lower monthly payments compared to the standard 25-year amortization
• Easier qualification since your debt service ratios improve
• More buying power within the same monthly budget
• Trade-off: You will pay more interest over the life of the mortgage

This does not mean you should automatically choose 30 years. A 25-year amortization builds equity faster and costs less in total interest. But having the option gives first-time buyers more flexibility, especially in the early years when budgets are tight.

I help clients weigh the pros and cons as part of my first-time home buyer service. The right amortization depends on your income trajectory, other debts, and long-term plans.

How to Stack These Programs Together

The real power comes from combining multiple programs on a single purchase. Here is a realistic example for a Saskatchewan buyer:

Scenario: Buying a $350,000 resale home in Saskatchewan

And if you are buying new construction, add the GST rebate and PST rebate on top of that.

The key is planning ahead. Many of these programs require your accounts to be open or funded before you purchase. If you are planning to buy within the next 12-24 months, start setting up your FHSA and contributing to your RRSP now.

For a detailed breakdown of all the costs you will face at closing, read my guide on closing costs for first-time buyers.

Common Mistakes to Avoid

After helping many Saskatchewan buyers navigate these programs, here are the errors I see most often:

• Not opening an FHSA early enough. The one-year minimum holding period means procrastinating costs you time. Open it today, even with a small contribution.
• Forgetting the 90-day RRSP rule. For the HBP, your RRSP funds must sit in the account for at least 90 days before you can withdraw them. Last-minute contributions will not qualify.
• Missing tax credits on your return. Both the federal and Saskatchewan tax credits need to be claimed on your tax return. They are not automatic—your accountant or tax software should catch them, but double-check.
• Ignoring the HBP repayment schedule. The money you withdraw from your RRSP must be repaid over 15 years. If you miss a repayment, that year’s amount gets added to your taxable income.
• Assuming you do not qualify. Some buyers think they are disqualified because they owned a home years ago. In Canada, you can re-qualify as a first-time buyer if you have not owned a home in the last four years.

Want to make sure you are not making other costly mistakes? Check out my post on first-time home buyer mistakes to avoid.

Get Expert Mortgage Guidance in Saskatchewan

These programs are most valuable when you use them as part of a coordinated plan. As a licensed mortgage associate in Saskatchewan, I help first-time buyers understand which programs apply to their situation and how to time everything for maximum benefit.

My first-time home buyer service includes:

• Program eligibility review - identify every incentive you qualify for
• Personalized savings plan - align your FHSA, RRSP, and down payment timeline
• Pre-approval with multiple lenders - find your best rate and terms
• Step-by-step guidance - from setting up accounts to closing day
• Local Saskatchewan expertise - I understand our market and your options

Do not leave thousands of dollars unclaimed. Contact me today for a free consultation and let’s build your home buying plan together.

Related Articles

• The Complete Guide for First-Time Home Buyers in Saskatchewan - Everything you need to know about buying your first home
• Down Payment Guide: How Much Do You Really Need? - Minimums, strategies, and how to save faster
• Closing Costs Explained for First-Time Buyers - Budget accurately so closing day has no surprises
• How Much House Can You Afford in Saskatchewan? - Calculate your true buying power before you shop