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First-Time Buyer

Learn who qualifies as a first-time buyer in Canada, what incentives are available, and how to benefit from programs that reduce the cost of buying a first home.

First-Time Buyer

May 22, 2025


What is a First-Time Buyer?

A first-time buyer is someone purchasing a home for the first time, or who qualifies as such under specific government programs and rebate rules.

Why First-Time Buyers Matter in Real Estate

In Canadian real estate, first-time buyers may access various financial incentives including land transfer tax rebates, the Home Buyers’ Plan (HBP), and the First-Time Home Buyer Incentive.


To qualify as a first-time buyer, you must:
  • Not have owned a home in the past 4–5 years (depending on the program)
  • Use the property as your principal residence
  • Be a Canadian citizen or permanent resident


Some programs have income or purchase price limits. Even if a spouse has owned property previously, buyers may still qualify under certain conditions.


Understanding first-time buyer status helps individuals and couples access savings and support that reduce the cost of purchasing a first home.

Example of a First-Time Buyer in Action

A first-time buyer receives a $4,000 land transfer tax rebate and withdraws $35,000 from their RRSP under the Home Buyers’ Plan to help with their down payment.

Key Takeaways

  • Applies to individuals purchasing their first home.
  • Grants access to rebates and incentives.
  • Must meet government eligibility rules.
  • Can reduce upfront and long-term costs.
  • Varies slightly between provinces and programs.

Related Terms

Additional Terms

Bridge Financing

Bridge financing is a short-term loan that helps homebuyers cover the financial gap between buying a new property and selling their existing one.. more

Bridge Loan

A bridge loan is a short-term financing option that allows homeowners to borrow against the equity in their current property to fund the purchase of. more

Firm Offer

A firm offer is a legally binding agreement to purchase a property that contains no conditions. Once accepted, it commits both the buyer and the. more

Foreclosure

Foreclosure is a legal process through which a lender takes ownership of a property when the borrower defaults on their mortgage payments.. more

Closing Costs

Closing costs are the various fees and expenses that buyers and sellers must pay to finalize a real estate transaction, separate from the property’s. more

Assignment Sale

An assignment sale occurs when the original buyer of a property (the assignor) sells their rights in the purchase agreement to a new buyer (the. more

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