If you are buying your first home in Calgary, the main programs available to you are the First Home Savings Account (FHSA), the RRSP Home Buyers' Plan, the First-Time Home Buyers' Tax Credit, 30-year insured amortizations, and the fact that Alberta has no provincial land transfer tax. There is also a federal GST rebate for first-time buyers of new homes. Together, they can reduce your costs and increase your down payment by tens of thousands of dollars.
I'm Jay Singh, a Calgary mortgage broker. Government programs change, and headlines are often confusing, so this guide sticks to the well-established programs and tells you where to confirm the current rules. Always verify details on canada.ca or with your tax professional before acting. This is general information, not tax advice.
What First-Time Home Buyer Programs Are Available in Calgary?
Here is the short list at a glance:
| Program | What it does | Key number |
|---|---|---|
| FHSA | Tax-deductible savings; tax-free withdrawal for a first home | $8,000 per year, $40,000 lifetime |
| Home Buyers' Plan (HBP) | Borrow from your own RRSP for a down payment | Up to $60,000 |
| First-Time Home Buyers' Tax Credit | Non-refundable tax credit at filing | Credit amount of $10,000, worth up to $1,500 |
| 30-year insured amortization | Lower monthly payments on insured mortgages | Available to first-time buyers from Dec 15, 2024 |
| No Alberta land transfer tax | Lower closing costs | Only small land title and mortgage registration fees |
| Federal GST rebate on new homes | Relief from GST on eligible new homes | Confirm current rules on canada.ca |
What Is the FHSA, and How Much Can You Save?
The First Home Savings Account is the most valuable program for most first-time buyers because it combines features of an RRSP and a TFSA.
- Contribution limit: $8,000 per year, with a $40,000 lifetime limit
- Contributions are tax-deductible, like an RRSP
- Qualifying withdrawals for a first home are tax-free, like a TFSA
- Carry-forward: unused annual room can generally be carried forward, subject to CRA rules
To use it you must be a first-time buyer under the CRA's definition and meet other eligibility conditions, so read the current rules on canada.ca. Even if you are not buying for a few years, opening one early starts building your contribution room ($8,000 per year; room only accrues once the account is open). The account can stay open for a maximum of 15 years. For a deeper comparison, read FHSA vs RRSP Home Buyers' Plan.
What Is the Home Buyers' Plan (HBP)?
The HBP lets you withdraw up to $60,000 from your RRSP to buy or build a qualifying home, without paying tax on the withdrawal. You repay the money to your RRSP over a set period. If you do not repay the required amount in a given year, that amount is included in your income for that year.
Key points to confirm on canada.ca:
- Funds generally must have been in the RRSP for a minimum period before withdrawal
- You must meet first-time buyer and residency conditions
- Repayment starts after a grace period and runs over a set number of years
- A couple buying together can each use the plan if both qualify
Can You Use the FHSA and HBP Together?
Yes. The FHSA and HBP can be combined for the same purchase. A buyer who has saved the FHSA maximum and uses the HBP could in principle direct up to $100,000 toward a down payment, and a couple could double that if both qualify. Whether that makes sense depends on your RRSP balance, your tax bracket and your repayment ability. The sibling post on FHSA vs HBP walks through trade-offs.
What Is the First-Time Home Buyers' Tax Credit?
This is a federal non-refundable tax credit claimed on your tax return in the year you buy. It is based on a credit amount of $10,000, which is worth up to $1,500 in tax savings. Because it is non-refundable, it only reduces tax you owe; it will not generate a refund by itself. Eligibility conditions apply, including a first-time buyer test and living in the home as your principal residence. Confirm the details with the CRA or your accountant.
What Is the 30-Year Amortization for First-Time Buyers?
Since December 15, 2024, first-time home buyers have been able to choose a 30-year amortization on insured mortgages (typically those with less than 20% down). Previously the maximum on insured mortgages was 25 years.
Why it matters:
- A longer amortization lowers your monthly payment
- It can improve how much you qualify for under the stress test
- You pay more interest over the life of the loan, so consider making extra payments when you can
Lender policies on this can vary, so ask your broker which lenders offer it. Our post on 30-year amortization for first-time buyers explains the payment impact and trade-offs. You can model your own numbers with the mortgage payment calculator.
Does Alberta Have a Land Transfer Tax?
No. Alberta does not charge a provincial land transfer tax. You still pay land title registration fees and mortgage registration fees, which are generally small compared with the transfer taxes in other provinces. That is a real advantage for Calgary buyers compared with Ontario or British Columbia. Your lawyer will confirm the exact fees at closing, and our guide to first-time buyer closing costs in Calgary covers what else to budget for.
Is There a GST Rebate for First-Time Buyers of New Homes?
The federal government has introduced a GST rebate on new homes for first-time buyers. The eligibility rules, price thresholds, and how the rebate is calculated and claimed have been specific and subject to change, so I am not going to quote thresholds here. Confirm the current rules on canada.ca, and ask your builder how the rebate is handled in your purchase contract, since builders often handle GST differently. Do not assume a rebate applies until you have confirmed it for your specific purchase.
What About the First-Time Home Buyer Incentive?
You may still see references to the federal First-Time Home Buyer Incentive, a shared-equity program run through CMHC. That program was discontinued in 2024 and is no longer available for new applicants. If a website or ad still promotes it as a current option, treat that as a sign the information is out of date.
Which Programs Can You Combine?
In practice, many Calgary first-time buyers stack several of these:
- Build the down payment with an FHSA and, if you qualify, the HBP
- Choose a 30-year amortization if you need a lower payment on an insured mortgage
- Claim the First-Time Home Buyers' Tax Credit when you file
- Budget for lower closing costs because Alberta has no land transfer tax
- If buying new, confirm whether the federal GST rebate applies
How Much Down Payment Do You Need in Calgary?
Minimum down payments in Canada are tiered: 5% on the first $500,000 of the price, 10% on the portion from $500,000 to $1.5 million, and 20% on homes at $1.5 million or more. With less than 20% down you need mortgage default insurance. A quick estimate and a check on what you can afford is easy with the affordability calculator. For a broader walkthrough, see our Calgary first-time home buyer guide and how much house you can afford in Calgary.
Where to Confirm Current Rules
Program rules change, sometimes with little notice. Before you act:
- Check the official page for each program on canada.ca
- Ask the CRA or an accountant about tax-related questions
- Ask your mortgage broker about lender policies for insured amortization and down payment sources
- Get written confirmation from your builder or lawyer on anything tied to your purchase contract
FAQ
Q: What is the best first-time home buyer program in Calgary? A: For most buyers, the FHSA is the most valuable because contributions are tax-deductible and qualifying withdrawals are tax-free. Combining it with the RRSP Home Buyers' Plan can increase your down payment further, depending on your savings.
Q: Can I use the FHSA and Home Buyers' Plan together? A: Yes, they can be used together for the same purchase if you meet the conditions of each. Confirm the current rules on canada.ca and plan the timing of withdrawals.
Q: Does Alberta charge a land transfer tax? A: No. Alberta has no provincial land transfer tax. You still pay small land title and mortgage registration fees at closing.
Q: Is there a GST rebate for first-time buyers? A: The federal government has introduced a GST rebate on new homes for first-time buyers. Eligibility and thresholds are specific and may change, so confirm the current rules on canada.ca and with your builder.
Q: Can first-time buyers get a 30-year mortgage in Canada? A: Yes. Since December 15, 2024, first-time buyers can choose a 30-year amortization on insured mortgages, subject to lender policies. It lowers the monthly payment but increases total interest.
Next Steps
The sooner you know your numbers, the better you can use these programs. A pre-approval shows what you qualify for, locks in a rate for a set period, and helps you plan your down payment sources. Learn more about the first-time buyer service, the pre-approval process, and today's Calgary mortgage rates.
Ready to plan your first home purchase in Calgary? Contact Jay for a no-obligation conversation: jaysinghmortgage@gmail.com or 403.409.1126.
