New Home buyers: what you need to know
Are you familiar with the various home buyers’ programs?
Between home prices, mortgage rates and the costs associated with buying a home, the dream of becoming a homeowner may seem out of reach for potential first-time buyers. Fortunately, there are a number of different government programs in place to help make your project a reality.
Which program is right for you? Did you know that the FHSA and HBP can be combined? It’s time for you to start planning the purchase of your first home. Contact your bank to learn more.
GST new housing rebate
First-time buyers: get up to $50,000 in assistance!
Transfer Duties Credit
Up to $5,875 refunded on your land transfer
FHSA
Tax-Free First Home Savings Account
HBP
Home Buyers’ Plan
GST New Housing Rebate for first-time homebuyers
First-time buyers: get up to $50,000 in assistance!
The federal government is offering a full GST rebat e on the purchase of a new home for first-time buyers.
This is a real opportunity to take the step toward owning a brand-new home. At GBD Construction, our homes are designed for families ready to make that move.
Here’s what you need to know:
- Who is eligible? Anyone who has never owned a home or hasn’t owned one in the past 4 years.
- How much can you get? Up to $50,000 for properties under $1 million. A partial rebate is also available for homes priced between $1M and $1.5M.
- What properties qualify? New single-family homes, condos, duplexes, or properties that have undergone major renovations.
- Already purchased? No problem—any contract signed since March 20, 2025, is eligible.
- In Quebec? Applications are processed through Revenu Québec.
Refundable Tax Credit – Transfer Duties
Up to $5,875 refunded on your “land transfer.” Buying your first new home has never been more accessible.
The Government of Québec has introduced a new refundable tax credit for access to homeownership, which refunds a significant portion — or even the full amount — of the real estate transfer duties (commonly known as the land transfer) paid when purchasing your first home.
In concrete terms, it’s money back in your pocket, shortly after your purchase. For the majority of first-time buyers in Québec, this represents a full refund of the land transfer.
How is it calculated? The refund can reach $5,875, broken down as follows:
Tax-Free First Home Savings Account - FHSA
In effect since April 1, 2023, the Tax-Free First Home Savings Account (FHSA) is a registered plan that allows you, if you’re a first-time home buyer, to save to buy or build a first home tax-free.
An FHSA combines the advantages of an RRSP and TFSA. This new product allows to you to contribute an annual tax-deductible amount of $8,000 toward the down payment of a first home.
Why is an FHSA so appealing? Contributing to an FHSA entitles you to a tax deduction (like an RRSP) and the return is tax-free. An FHSA can also be combined with the Home Buyers’ Plan (HBP). Contact your bank to learn more.
A few facts about FHSAs
- Contribution of $8,000 per year, up to a total of $40,000
- The investment income is tax-free
- The contributions provide a tax savings
- You don’t have to pay back the money you withdraw from your FHSA
- You must be a Canadian resident
- You must be between the ages of 18 and 71
- Buyers must not have owned a home in the past 4 years
