Government Incentive
Learn what government incentives are in Canadian real estate, how they support buyers, and what programs are available for cost savings and home ownership.
May 22, 2025
What is a Government Incentive?
A government incentive is a program, rebate, or financial support offered by a federal, provincial, or municipal government to assist homebuyers, builders, or investors.
Why Government Incentives Matter in Real Estate
In Canadian real estate, government incentives help reduce the cost of homeownership, support first-time buyers, and promote energy efficiency or regional development.
Examples include:- First-Time Home Buyer Incentive (federal)
- Land Transfer Tax rebates (provincial or municipal)
- GST/HST new housing rebates
- Energy retrofit or green building grants
Eligibility criteria vary by program and may include income thresholds, residency status, property type, and principal residence use. These incentives are often time-limited or budget-restricted.
Understanding government incentives helps buyers access financial support, plan budgets, and take advantage of cost-saving programs during a real estate transaction.
Example of a Government Incentive in Action
A first-time buyer uses the federal incentive program to reduce their mortgage payments and receives a $4,000 provincial land transfer tax rebate.
Key Takeaways
- Reduces homeownership or renovation costs.
- Offered by all levels of government.
- Varies by region and buyer profile.
- Requires meeting eligibility rules.
- Must be applied for proactively.
Related Terms
- First-Time Buyer
- Eligibility Criteria
- Principal Residence
- Down Payment
- Mortgage Insurance
The 8530 Cambie Street site in Vancouver, directly adjacent to Marine Drive Station. / Perkins&Will, PCI Developments
A sketch of Marine Gateway (left) and Marine Gateway 2 (right). / Perkins&Will, PCI Developments 
A rendering of Marine Gateway 2 at 8530 Cambie Street from along Cambie Street. / Perkins&Will, PCI Developments 
An aerial rendering of Marine Gateway (south) and Marine Gateway 2 (north). / Perkins&Will, PCI Developments 
A side view of Marine Gateway 2 and the layout and elevations of the industrial and retail space. / Perkins&Will, PCI Developments
A rendering of the elevated park at Marine Gateway 2. / Perkins&Will, PCI Developments 
Left: 1675-1685 Eglinton — Right: 1711-1741 Eglinton/Kirkor Architects and Planners, Shelborne Capital
101 Spadina/Audax, Devron Developments
340-376R Dufferin and 2 Melbourne/Sweeny &Co Architects Inc., Hullmark
1705 Weston/Graziani + Corazza Architects, Altree Developments
1276 Islington/Kirkor Architects and Planners, Ranee Management
3725 Bloor/Montgomery Sisam Architects Inc.
2-12 Cawthra/ZAS Architects + Interiors Inc, BV Realty Partners
The 807-815 Hornby Street site and its surrounding context, including nearby hotels. / SHoP Architects, BOP Architects, Reliance Properties
A rendering of the hotel and residential lobbies along Hornby Street. / SHoP Architects, BOP Architects, Reliance Properties
A rendering of the building from the corner of Hornby Street and Robson Street. / SHoP Architects, BOP Architects, Reliance Properties
Renderings of the 35-storey tower proposed for 807-815 Hornby Street in Vancouver. / SHoP Architects, BOP Architects, Reliance Properties