Homeownership remains a major goal for many people in Canada, but the path to getting there isn’t always straightforward. We broke down the available programs and incentives last year in our 2025 guide, and also prepared a guide for first-time home buyers in BC. Heading into 2026, most are still in place, with a few updated to reflect current market conditions.
If you’re planning to buy this year, whether for the first time or not, understanding how these national and provincial incentives work—and how they can fit together—can make a big difference in how you plan your purchase. Here is a breakdown of the key programs you should know about for 2026.
Federal Programs
These federal programs are available to eligible buyers across Canada, providing a foundation for your down payment and tax savings.
The First Home Savings Account (FHSA)
Since its launch, the FHSA has been one of the most useful tools for Canadians saving for their first home. It combines the best features of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA). Contributions are tax-deductible, and withdrawals (including any investment growth) are tax-free when used to buy a qualifying home.
2026 Update: According to the Government of Canada’s FHSA guidelines, if you’ve been contributing since the program was introduced in 2023, your total available contribution room could now be up to $32,000. Keep in mind that the contribution room only starts accumulating once the account is opened, with an annual limit of $8,000.
The Home Buyers’ Plan (HBP)
The HBP allows you to withdraw funds from your RRSP to buy or build a qualifying home for yourself or a relative with a disability.
The Details: The CRA’s Home Buyers’ Plan withdrawal limit remains at $60,000 for 2026. If you made a withdrawal between 2022 and 2025, you may also benefit from the extended five-year repayment grace period, which gives you more time before repayments need to begin.
First-Time Home Buyers’ Tax Credit (HBTC)
At the federal level, the HBTC is a non-refundable tax credit designed to help offset some of the costs associated with buying a home.
The Benefit: Eligible buyers can claim a non-refundable tax credit of $10,000, which translates to a tax savings of up to $1,500. While it won’t cover major expenses, it can help recover smaller upfront costs like legal fees or inspections.
GST New Housing Rebate
If you are buying a newly constructed home or performing substantial renovations, you may be eligible for a rebate on the GST. For 2026, this remains a critical tool for those looking at the new-build market to help manage the total purchase price.
GST Relief for First-Time Homebuyers on New Homes up to $1.5 Million
For those eyeing new construction, the GST relief for first-time home buyers has been expanded. This is a vital incentive in the BC market, where new builds often fall into this price range, providing meaningful savings on the federal portion of the tax.
2026 Thresholds: Eligible first-time buyers can now access rebates on newly built homes with a purchase price of up to $1.5 million.
30-Year Mortgages for First-Time Home Buyers
Under the CMHC Home Start program, first-time home buyers and purchasers of newly built homes can now opt for a 30-year amortization period on insured mortgages. This extension helps lower monthly mortgage payments, making it easier for many to qualify and manage their cash flow in the early years of homeownership.
The Details: A significant update for 2026 is the expanded access to 30-year mortgage amortizations.
British Columbia Incentives
In addition to federal support, buyers in BC have access to provincial programs that specifically target the local market’s unique challenges.
BC First-Time Home Buyers’ Program
For buyers in BC, Property Transfer Tax (PTT) is often one of the largest closing costs. This program can reduce or eliminate that cost for those who qualify.
2026 Thresholds: To qualify for a full exemption under the BC First-Time Home Buyers’ Program, the fair market value of the home must be $835,000 or less. Partial exemptions apply to homes valued up to $860,000.
Newly Built Home Exemption for Property Purchase Tax
This exemption is available for newly built homes, regardless of whether you’re a first-time buyer, provided you use it as your principal residence.
The Details: For 2026, you may be exempt from PTT on a newly built home with a fair market value of up to $1,100,000, with partial exemptions available for homes valued up to $1,150,000.
BC Secondary Suite Incentive Program (SSIP)
A newer addition for 2026, the SSIP helps homeowners create affordable rental housing. For buyers, it can be a practical way to plan for future rental income.
The Benefit: The BC Housing Secondary Suite Incentive Program offers a forgivable loan covering up to 50% of construction costs, to a maximum of $40,000. Please note that the secondary suite must be rented out at below-market rates for at least five years to qualify. This “mortgage helper” can be a game-changer for qualifying for financing in the 2026 market.
Making the Most of 2026
While each of these programs can be helpful on its own, the real value often comes from how they work together. For example, combining tools like the FHSA and the Home Buyers’ Plan can strengthen your down payment strategy if used correctly.
That said, the details can get a bit complex. Eligibility rules vary, especially regarding what qualifies as a first-time buyer or how different programs interact if you’re purchasing with a partner. Taking the time to understand how these incentives apply to your situation can make a real difference in your overall planning.
Please note that these incentives are subject to change without notice, so contact Auxilium Mortgage for up-to-date information on each program.
Ready to build your homeownership strategy?
The team at Auxilium Mortgage is here to help you navigate these programs and find the financing that fits your 2026 goals. Whether you’re curious about your BC Property Transfer Tax status or want to maximize your FHSA, we have the expertise to guide you. Contact us today to start the conversation!