Down Payment Assistance Programs in Canada (2026 Guide)

2. RRSP Home Buyers’ Plan (HBP)

Who qualifies: first-time buyers with existing RRSP savings who are buying a home to live in. Two buyers who both qualify can each use it.

How it works: you withdraw from your RRSP toward the purchase, and the withdrawal isn’t taxed as income the way a normal RRSP withdrawal would be. It works like a loan from yourself: you repay the money into your RRSP over 15 years, and any required annual repayment you miss is added to your taxable income for that year. Confirm the year your repayments start with the CRA or your tax adviser.

Limits: up to $60,000 per person, or $120,000 for a couple who both qualify. The funds generally must have been in the RRSP for at least 90 days before you withdraw them, so a last-minute contribution won’t work. The HBP stacks with the FHSA: one person who has used both in full brings $100,000 of tax-advantaged money to the purchase.

3. Gifted down payment from family

Who qualifies: buyers receiving a genuine gift, generally from immediate family such as parents, grandparents, children or siblings. Some lenders accept other close relatives; gifts from friends, employers or anyone expecting repayment are usually declined.

How it works: the giver signs a gift letter stating their name, their relationship to you, the amount and the property, and confirming the money is a gift with no repayment expected. The funds need to arrive in your own account with a traceable transfer before closing, and some lenders ask for proof the giver had the money. Canada has no gift tax, so the gift itself isn’t taxed. Gifts from family abroad are allowed but need extra source-of-funds documents and more time to verify.

Limits: on an insured, owner-occupied purchase, a gift from an immediate relative can fund the whole down payment, even at the 5% minimum. For some uninsured or rental purchases, lenders want part of the down payment from your own savings. A ‘gift’ that is really a loan counts as debt and can hurt your qualifying. Our gifted down payment mortgage page covers the gift letter in detail.

4. Insured mortgages with 5% down

Who qualifies: buyers of a home priced up to $1.5 million who put down less than 20% and qualify for mortgage default insurance from CMHC, Sagen or Canada Guaranty.

How it works: the insurance protects the lender, which is what makes a small down payment possible. The premium is a percentage of the mortgage that rises as your down payment shrinks, and it is usually added to the loan rather than paid up front. Insured mortgages often carry lower rates than uninsured ones because the lender’s risk is covered. You still have to pass the stress test; our guide to the mortgage stress test in Canada explains how it works.

Limits: the minimum is 5% on the first $500,000 and 10% on the portion from $500,000 to $1.5 million. Homes over $1.5 million can’t be insured and need at least 20% down. A 30-year amortization may be available to first-time buyers and on new builds, which lowers the payment but adds interest; confirm current eligibility with your broker. Estimate your premium with the CMHC insurance calculator.

5. First-time buyer land transfer tax rebates

Who qualifies: generally first-time buyers who have never owned a home anywhere and will live in the property. Exact rules vary by province.

How it works: most provinces that charge land transfer tax offer a first-time buyer rebate or exemption, usually claimed at closing through your lawyer. It isn’t down payment money, but every dollar you don’t pay in tax at closing is a dollar that can stay in your down payment.

Limits: in Ontario, the rebate is up to $4,000, and the City of Toronto adds its own municipal rebate of up to $4,475. In British Columbia, the First Time Home Buyers’ Program exempts the Property Transfer Tax on the first $500,000, up to $8,000, in full on homes up to $835,000 and phasing out by $860,000. In Prince Edward Island, eligible first-time buyers are exempt from the Real Property Transfer Tax with no purchase-price limit. In Quebec, a refundable tax credit on homes acquired from 1 January 2026 reimburses the first $5,000 of transfer duties plus 25% of the next $3,500, up to $5,875; it is reduced above a $750,000 home value, ends at $1,000,000 and is paid after closing. Manitoba doesn’t currently offer a first-time buyer rebate, and Alberta has no land transfer tax. Elsewhere, check your province’s current rules. Estimate your bill with the land transfer tax calculator.

6. Home Buyers’ Amount (federal tax credit)

Who qualifies: first-time buyers purchasing a qualifying home.

How it works: you claim $10,000 on your tax return for the year you buy, as a non-refundable tax credit. The money comes back at tax time, not before closing, so it won’t fund the down payment directly, but it helps rebuild the savings you drew down to buy.

Limits: worth about $1,500. Because the credit is non-refundable, it reduces tax you owe rather than paying out on its own. It is easy to miss, so tell whoever prepares your return that you bought your first home that year.

7. GST/HST new housing rebate

Who qualifies: buyers of a newly built or substantially renovated home. Resale homes don’t qualify.

How it works: you may recover part of the GST, or the federal portion of the HST, paid on the purchase. Builders often credit the rebate directly into the purchase price, so check your agreement to see how it is handled and whether the price you were quoted already assumes it.

Limits: the amount depends on the home’s price, and some provinces have their own portion. Thresholds and rules change, so confirm current eligibility with the builder, your lawyer or the CRA before you count it in your budget.

8. Provincial and municipal down payment programs

Who qualifies: it depends on where you buy. Some provinces and cities run their own first-time buyer help, which can include extra land transfer tax rebates, property tax deferrals, down payment assistance or help with closing costs.

How it works: these programs change often and differ widely from one place to the next. Eligibility, funding and conditions are set locally, and a program that ran last year may be closed or fully used this year.

Limits: check with your provincial government and your municipality before you make an offer, and ask your broker what is being used in your market. Don’t assume a program still exists because an older article mentions it.

No longer available: the First-Time Home Buyer Incentive

The federal First-Time Home Buyer Incentive was a shared-equity program: the government took a stake in your home in exchange for help with the down payment. It was discontinued and stopped accepting new applications in 2024. If an older article, a relative or a sales brochure mentions it, it no longer applies. Plan around the live programs above instead.

How to combine these programs

Most of these programs stack. One first-time buyer could put an FHSA, a Home Buyers’ Plan withdrawal and a family gift toward the down payment, buy with an insured mortgage at 5% down, claim a land transfer tax rebate at closing and the Home Buyers’ Amount at tax time. Two first-time buyers purchasing together can each use their own FHSA and HBP.

Order matters. Open an FHSA early, because room only builds once the account exists. Make sure RRSP funds have been in place for 90 days before an HBP withdrawal, and deposit any gift early enough to document it. For the full buying journey, read our first-time home buyer mortgage guide, and for help comparing lenders, our complete guide to working with a mortgage broker in Canada. To talk to someone nearby, find your local mortgage broker in Toronto, Vaughan or Mississauga.