CanadaWhat government programs exist to help first-time homebuyers?
Canada offers several federal programs for first-time homebuyers, including the First Home Savings Account (FHSA), Home Buyers’ Plan (HBP), and CMHC-insured mortgages with lower down payment requirements.
What the Law Says
The National Housing Act sets the legal foundation for federal housing support in Canada, authorizing programs that improve affordability and access to housing finance — including tools specifically designed to help first-time buyers enter the market.
The National Housing Act gives the Canada Mortgage and Housing Corporation (CMHC) authority to run programs that increase housing affordability and expand access to financing. This includes supporting first-time buyers through insured mortgages, savings incentives, and down payment assistance.
While the Act does not list specific first-time buyer programs by name, its purpose and spending powers enable key initiatives like CMHC mortgage loan insurance (which allows down payments as low as 5%), the First Home Savings Account (FHSA), and the Home Buyers’ Plan (HBP). These are administered under the Act’s broader mandate.
Statutory TextThe purpose is to promote housing affordability and choice, facilitate access to and competition in the provision of housing finance, and protect the availability of adequate funding for housing.
— National Housing Act, s. 3 — Purpose
Statutory TextCMHC may make expenditures for housing programs including social housing and affordable housing.
— National Housing Act, s. 61 — Affordable housing programs
What to Do
Open a First Home Savings Account (FHSA) — contribute up to $8,000/year (max $40,000 lifetime) tax-free for a first home.
Withdraw up to $35,000 from your RRSP under the Home Buyers’ Plan (HBP) — repay over 15 years.
Apply for a CMHC-insured mortgage if your down payment is between 5% and 19.99% — requires mortgage default insurance.
Check provincial programs (e.g., BC’s First-Time Home Buyer Program or Ontario’s Land Transfer Tax Rebate) for additional support.
Consult a licensed mortgage professional or financial advisor to confirm eligibility and optimize benefits.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.