First-Time Buyer Programs in 2025: What's New and What Changed

If you're planning to buy your first home in 2025, you need to know about the major changes to federal programs. The government has made homeownership more accessible with bigger limits, longer amortizations, and new tax breaks.

The Big Changes for 2024-2025

Here's what's different from even a year ago:

Home Buyers' Plan: Now $60,000

The RRSP Home Buyers' Plan got a major boost. You can now withdraw up to $60,000 from your RRSP tax-free for your down payment—nearly double the old $35,000 limit.

For couples, that's up to $120,000 combined.

Even better: if you withdrew between 2022 and 2025, you now have 5 years before you need to start repaying (extended from 2 years). That gives you more time to get settled before the repayments kick in.

First Home Savings Account (FHSA)

If you're not already using an FHSA, you should be. It's the best savings vehicle for first-time buyers:

• $8,000/year contribution limit ($40,000 lifetime)
• Contributions are tax-deductible (like an RRSP)
• Withdrawals are tax-free (like a TFSA)
• You can carry forward unused room (up to $8,000)

The FHSA combines the best features of both RRSPs and TFSAs. And yes, you can use both the FHSA and HBP for the same home purchase.

30-Year Mortgages Are Back

As of December 2024, first-time buyers can access 30-year amortizations on insured mortgages. This was previously only available with 20%+ down payments.

What does this mean? Lower monthly payments.

On a $600,000 mortgage at 5%, a 30-year amortization saves you roughly $300/month compared to 25 years. That can make the difference between qualifying and not qualifying.

Higher Insured Mortgage Limit

The cap for insured mortgages increased from $1 million to $1.5 million. This means you can now put just 5% down on homes up to $1.5M (previously you needed 20% for anything over $1M).

For Waterloo Region buyers, this opens up more options in desirable neighborhoods that were previously out of reach for low-down-payment buyers.

What Happened to the First-Time Home Buyer Incentive?

The shared equity program where the government contributed 5-10% of your purchase price? It's gone. The program was discontinued in March 2024 due to low uptake.

Don't worry—the other programs more than make up for it.

Programs That Are Still Going Strong

Ontario Land Transfer Tax Rebate

First-time buyers in Ontario get up to $4,000 back on land transfer tax. On homes under $368,000, you pay zero provincial land transfer tax.

First-Time Home Buyers' Tax Credit

Claim $10,000 on your tax return for a rebate of up to $1,500. This can be split between spouses.

GST Relief on New Builds (Coming 2025)

Starting May 2025, first-time buyers purchasing new construction can recover up to $50,000 in GST on homes valued up to $1.5M.

Your 2025 First-Time Buyer Strategy

The Bottom Line

Despite what you might hear about unaffordable housing, the federal government has actually made it easier for first-time buyers in 2024-2025. Higher limits, longer amortizations, and better tax treatment all work in your favor.

The key is knowing about these programs and using them strategically.

See all first-time buyer programs and incentives →