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.
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
- First-Time Homebuyer Rebate
- Eligibility Criteria
- Principal Residence
- Down Payment
- Government Incentive
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Housing starts for one to eight unit developments/CMHC
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Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
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