A knowledgeable real estate agent can help buyers understand these programs and use them effectively. They can turn eligibility rules into a practical offer strategy, making their guidance more valuable as home-buying incentives become more complex.
What Replaced It: Current Programs in 2026
There’s no direct successor. Instead, buyers can access a wider range of federal and provincial housing programs. Many of these programs were introduced through the 2024 federal budget and the housing legislation that followed.
| Program | Detail |
| First Home Savings Account (FHSA) | $8,000 annual contribution limit, $40,000 lifetime max. Contributions are tax-deductible; qualifying withdrawals are tax-free. |
| RRSP Home Buyers’ Plan (HBP) | Withdrawal limit raised to $60,000 per person (from $35,000) under the 2024 federal budget. Couples can combine for $120,000. |
| First-Time Home Buyers’ Tax Credit (HBTC) | $1,500 non-refundable tax credit claimed in the year of purchase. |
| GST Rebate for First-Time Buyers | Full federal GST rebate on new-build homes priced at or below $1 million (up to $50,000 in savings). Phases out on a straight-line basis between $1 million and $1.5 million; no rebate above $1.5 million. |
| 30-Year Amortization on Insured Mortgages | Available to all first-time buyers and all new-build purchasers with less than 20% down, up from the previous 25-year cap. |
| Insured Mortgage Price Cap | Raised to $1.5 million (from $1 million) as of December 15, 2024, opening insured financing to higher-priced purchases. |
| Provincial Land Transfer Tax Rebates | Rebates such as Ontario’s land transfer tax rebate (up to $4,000) can stack with municipal rebates like Toronto’s (around $4,475). |
A few things worth flagging for context:
- The FHSA and HBP can be used together on the same purchase. A buyer with a maxed-out FHSA and a full HBP withdrawal is looking at roughly $100,000 in combined tax-advantaged room, before provincial rebates.
- The GST/HST rebate on new homes only applies to new construction, not resale, so it changes the math on pre-construction purchases specifically.
- The 30-year amortization doesn’t reduce the purchase price, but it does lower the monthly qualifying payment, which affects how much mortgage a buyer can actually get approved for.
How These Programs Compare to the Old FTHBI?
The FTHBI was a shared-equity arrangement. The government put money in and took a stake in the home’s value, which meant repayment could grow alongside the property’s appreciation.
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The current toolkit works differently. It’s built on tax deductions, tax-free withdrawals, and rebates, with no equity-sharing and no future payout owed to the government.
For most buyers, that’s a simpler structure to plan around, since the numbers are fixed at the time of purchase rather than tied to a future valuation.
Practical Takeaways
- Start FHSA contributions as early as possible. The $8,000 annual cap means it takes five years to reach the $40,000 lifetime maximum, so timing matters more than most buyers assume.
- If you’re buying new construction, run the GST rebate math before you run comparables. On a $950,000 new-build purchase, the rebate alone can be the difference between qualifying and not.
- The 30-year amortization is most useful as a qualifying tool, not a long-term cost strategy. Buyers who can afford a 25-year payment schedule usually save meaningfully on total interest.
- Land transfer tax rebates are easy to miss because they’re processed separately from federal programs. Confirm eligibility with your municipality before closing, not after.
FAQ
Is the CMHC First-Time Home Buyer Incentive still available?
No. It was discontinued on March 21, 2024. Current tools include the FHSA, the expanded RRSP Home Buyers’ Plan, the GST rebate on new builds, and 30-year insured mortgage amortizations.
Can I use the FHSA and the Home Buyers’ Plan on the same purchase?
Yes. They’re separate programs with separate limits, and combining them is common practice for first-time buyers maximizing their down payment.
Does the GST rebate apply to resale homes?
No. It only applies to newly constructed homes, owner-built homes, and shares in a co-operative housing corporation.
Is there still a shared-equity program like the FTHBI?
Not at the federal level. The current programs are structured as tax deductions, tax-free withdrawals, and rebates rather than equity-sharing arrangements.
Bottom Line
The FTHBI is gone, but buyers now have several programs that help with different parts of home affordability.
Using the FHSA, HBP, GST rebate, extended amortizations, and provincial rebates together can provide more financial sThe CMHC First-Time Home Buyer Incentive (FTHBI) was discontinued on March 21, 2024. A single program has not replaced it. Buyers now have access to several programs that can reduce upfront costs and improve affordability. If you’re financing a purchase, talking to a mortgage broker early is what turns this list of programs into an actual pre-approval number.
These options can help buyers pay money up front and make homes more affordable. If you want to buy a home, you should talk to a mortgage broker as soon as possible. The mortgage broker can help you figure out which programs you can use to get a deal on your home.
The available programs include the First Home Savings Account, the expanded Registered Retirement Savings Plan Home Buyers Plan that lets you take out up to $60,000, and a Goods and Services Tax rebate of up to $50,000 on eligible homes.
Buyers may also be able to get a mortgage that they can pay back over 30 years. They can buy a more expensive home because the price limit is higher at $1.5 million.
All of these programs together mean that a buyer can save around $100,000 before they even get any money back from the province for the land transfer tax. The First-Time Home Buyer Incentive is not available. The new programs can still help buyers.
What Was the FTHBI?
The FTHBI launched in 2019 as a shared-equity program. The government contributed 5% to 10% toward a down payment on a new home in exchange for a proportional stake in the property’s future value.
No monthly payments were required, but the loan had to be repaid after 25 years or upon sale, with the repayment adjusted for appreciation or depreciation. Income and mortgage-size caps limited who could actually use it, and by 2024, the program was widely seen as underused. It’s a closed chapter now, useful mainly as context for why the current toolkit looks so different.
upport than the old shared equity program.
The catch is that using all of it correctly takes coordination between a lender, a broker, and an agent who actually understands the current rules, not the 2019 version of them.
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