Do I still count as a first-time buyer if I owned a home years ago?

Possibly. Several programs, including the RRSP Home Buyers' Plan, treat you as a first-time buyer if you have not owned a principal residence you occupied within the past four years. Check each program's rules.

What is the biggest financial benefit for first-time buyers?

It varies, but the RRSP Home Buyers' Plan and provincial land transfer tax rebates are among the most valuable, since they free up cash for the down payment and reduce closing costs.

How much do I need for a down payment as a first-time buyer?

The minimum is 5% on the first $500,000 of the purchase price and 10% on any portion above $500,000. Putting down less than 20% means you will need mortgage default insurance.

Mortgage Glossary

What is First-Time Home Buyer?

A first-time home buyer is a person purchasing a home who has not previously owned one, and in some programs has not owned a home within a set number of recent years. In Canada, qualifying first-time buyers can access incentives such as the RRSP Home Buyers' Plan and certain land transfer tax rebates.

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Quick answer

Also known as: first time buyer, FTHB

Key points

Generally means you have not owned a principal residence, sometimes within the past four years.
The exact definition depends on the specific program you are applying to.
The RRSP Home Buyers' Plan lets first-time buyers withdraw up to $60,000 (2024).
Some provinces and municipalities offer land transfer tax rebates to first-time buyers.
Minimum down payment is 5% on the first $500,000 of the price.

First-Time Home Buyer explained

The label first-time home buyer is used by various federal and provincial programs to determine who qualifies for support. The exact definition varies by program, but it generally means you have not owned a principal residence, and several programs extend eligibility to people who have not owned in the past four years.

First-time buyers face the steepest learning curve and the largest upfront hurdle, the down payment. To help, Canada offers tools such as the RRSP Home Buyers' Plan, which lets you withdraw up to $60,000 from your RRSP toward a purchase, and some provinces and cities offer land transfer tax rebates.

What a First-Time Home Buyer is for

First-time buyer status unlocks programs designed to make that initial purchase more achievable, by easing the down payment burden and reducing closing costs. These supports exist because the first purchase is typically the hardest to fund.

How it can help you

Knowing you qualify as a first-time buyer can save you thousands through rebates and RRSP withdrawals, and it shapes how much you need to save. Lenderoo lets you shop 40+ lenders for free, so first-time buyers can compare mortgage options without the legwork.

When it comes up

A young couple buying their first condo uses the RRSP Home Buyers' Plan to pull savings toward their down payment, then claims a provincial land transfer tax rebate at closing. Together these reduce the cash they need on hand and make the purchase possible sooner.

Example: stacking first-time buyer supports

A first-time buyer purchases a $450,000 home. The minimum down payment is 5% on the first $500,000, so they need $22,500 down.

They withdraw $20,000 each from their and their partner's RRSPs under the Home Buyers' Plan (up to $60,000 per person) to help fund the down payment, then claim a land transfer tax rebate available to first-time buyers in their province at closing, lowering their upfront costs.

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Questions & answers

First-Time Home Buyer: frequently asked questions

Common questions Canadians ask about first-time home buyer.

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Related mortgage terms

Down Payment

The upfront cash payment made when purchasing a home

Read definition

RRSP Home Buyers' Plan

A federal program that lets eligible buyers withdraw money from their RRSP tax-free to help buy or build a qualifying home.

Read definition

Land Transfer Tax

A provincial (and sometimes municipal) tax paid when property ownership changes hands.

Read definition

Pre-Approval

Conditional approval for a mortgage before house hunting.

Read definition

Closing Costs

Fees and expenses paid when finalizing a real estate transaction

Read definition

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Mortgage Glossary

What is First-Time Home Buyer?

Find my best mortgage Back to glossary

Quick answer

Also known as: first time buyer, FTHB

Key points

Generally means you have not owned a principal residence, sometimes within the past four years.
The exact definition depends on the specific program you are applying to.
The RRSP Home Buyers' Plan lets first-time buyers withdraw up to $60,000 (2024).
Some provinces and municipalities offer land transfer tax rebates to first-time buyers.
Minimum down payment is 5% on the first $500,000 of the price.