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Canada-wide · FSRA #13737

Down payment assistance
programs in Canada —
2026 guide.

Down payment assistance programs in Canada are mostly tax-advantaged accounts, rebates and credits rather than cash grants. Here are the eight worth knowing in 2026, who qualifies for each, how it works and the limits that apply.

Why Choose Us

Stack every program
you qualify for.

Most buyers use one account and miss the rest. We map the full picture — and only the programs that are still open in 2026.

FHSA + HBP

Stack $200K in tax-advantaged funds

A couple can each combine the FHSA ($40,000 per person) with the RRSP Home Buyers’ Plan ($60,000 per person) for up to $200,000 of tax-advantaged down payment — before touching a dollar of after-tax savings.

5% Minimum Down

Buy with as little as 5% down

Insured mortgages let you buy with 5% down on homes up to $1.5M. Since December 15, 2024, first-time buyers also access a 30-year amortization — lower monthly payments at the same insured rate.

Family Gifts

Gifted funds can cover the whole down payment

On an insured, owner-occupied purchase, a gift from an immediate family member can cover the entire minimum down payment. We draft the gift letter correctly the first time so your file clears without delays.

FSRA #13737

Expert program stacking — at no cost to you

An FSRA-licensed advisor maps every program that applies to your file, plans the timing across accounts, and pre-approves you across 100+ lenders. On standard A-lender files, the lender pays us — not you.

The Process

From programs mapped
to keys in hand.

Timing matters. Open your FHSA early, season your RRSP funds, and deposit gifts before the documentation window closes.

01

Check what you qualify for

Tell us whether you are a first-time buyer, where you are buying, what you have saved and any family help. We map which programs apply, and the limits on each, before you move any money.

02

Line up the funds in the right order

We plan the timing: FHSA room, RRSP funds that have been in place at least 90 days before an HBP withdrawal, and a gift deposited early enough to be documented properly.

03

Get pre-approved with a verified down payment

Your lender verifies each source at pre-approval. We compare your file across 100+ lenders and flag the rebates your lawyer should claim at closing.

Your Situation

We can help whatever your story.

Tap any situation below to see how we approach it.

If you’re…

You have an FHSA and want to use it now

If your account has been open at least one day and you have a written purchase agreement, you can make a qualifying withdrawal. We verify your eligibility and plan the timing so nothing is taxed by mistake.

Map my FHSA withdrawal
If you’re…

You have RRSP savings from years ago

Funds that have been in your RRSP for at least 90 days before closing can be withdrawn tax-free under the Home Buyers’ Plan — up to $60,000 per person. We combine it with your FHSA if you have one.

Model my HBP withdrawal
If you’re…

Your parents or family are gifting the down payment

Gifts from immediate family can cover the full minimum down payment on an insured purchase. We draft the gift letter correctly the first time so the lender doesn’t flag it and delay your closing.

See gifted down payment rules
If you’re…

You can only put 5% down right now

An insured mortgage lets you buy with 5% down on homes up to $1.5M. We model the insurance premium, the true monthly cost and how it compares to saving 20% — the answer isn’t always what you expect.

Model my 5% down purchase
If you’re…

You and your partner are buying together

Two first-time buyers can each use their own FHSA and RRSP HBP. We plan the optimal sequence — which account to deplete first — and maximise the combined down payment for your tax situation.

Stack our programs together
If you’re…

You’re unsure which program fits your timeline

Open an FHSA as early as possible — room only builds once the account exists. We map your full timeline, flag when RRSP funds are 90 days seasoned, and plan any gift deposit to hit the documentation window.

Plan my timeline
The Math

How the programs add up
for a couple in 2026.

Two first-time buyers purchasing together can each use their own FHSA and RRSP HBP — the accounts are individual.

FHSA
$80,000
$40,000 × 2 people
Tax deductible in, tax-free out — never repaid
RRSP HBP
$120,000
$60,000 × 2 people
Repaid interest-free to RRSP over 15 years
LTT Rebates
Up to $8,475
Ontario + Toronto
Credited by your lawyer at closing — no repayment
Total tax-advantaged down payment (couple)
$200,000
FHSA $80K + RRSP HBP $120K — before you touch after-tax savings
Model my stack
Canadian down payment assistance programs compared by limit, tax treatment, repayment, and 2026 status
ProgramLimitTax treatmentRepaymentStatus
FHSA — First Home Savings Account$8,000/yr · $40,000 lifetimeDeductible in, tax-free out — unique in CanadaNoneLive
RRSP Home Buyers’ Plan (HBP)$60,000 withdrawal per personDeductible in; withdrawal is tax-freeOver 15 years to your RRSPLive — stacks with FHSA
5% Insured MortgageHomes up to $1.5MNot a tax program — insurance premium added to loanNo repayment — it’s your mortgageLive · 30-yr amort since Dec 15, 2024
Land Transfer Tax RebatesUp to $8,475 (Ontario + Toronto)Credit applied at closing — not a tax return itemNoneLive — varies by province
First-Time Home Buyer Incentive (FTHBI)EndedWas 5%–10% government shared equityNot a tax program — government took a home stakeAt 25 years or on sale, indexed to home valueDiscontinued March 21, 2024

Limits are per-person unless stated. Both the FHSA and the HBP are individual accounts — two buyers can each use both. We model the optimal order before you withdraw a dollar.

FAQ

Common questions,
clear answers.

Grants vs. credits, the FTHBI, gift letters, repayment rules — answered plainly.

Are there government grants for a down payment in Canada?

At the federal level, help mainly comes through tax-advantaged accounts and credits (the FHSA, the Home Buyers’ Plan and the Home Buyers’ Amount) rather than cash grants. Some provinces and municipalities run their own programs, so check where you are buying.

Is the First-Time Home Buyer Incentive still available?

No. The federal shared-equity First-Time Home Buyer Incentive closed to new applications on March 21, 2024. If an older article, a relative or a sales brochure mentions it, it no longer applies. Plan around the live programs instead.

Can my whole down payment be a gift?

On an insured, owner-occupied purchase, a gift from an immediate family member can cover the entire down payment, provided it is documented with a signed gift letter and the funds are traceable.

Do I have to repay FHSA or HBP withdrawals?

A qualifying FHSA withdrawal is never repaid. HBP withdrawals must be repaid to your RRSP over 15 years, and a missed annual repayment is added to your taxable income for that year.

Can a mortgage broker help with these programs?

Yes. A broker checks which programs apply, plans the timing so lenders can verify each source, and flags rebates for your lawyer to claim. On standard prime files the lender pays the broker, so the service is typically free to you.

The Mortgage Squad Guarantee

We’ll try to beat your rate.
If we can’t, we pay you $500.¹

¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply

Find a down payment specialist in your city

Down payment assistance programs work the same across Canada, but property prices, land transfer tax rules and local programs differ. Talk to an advisor who knows your market.