First-Time Home Buyer Programs in Alberta (FHSA, HBP & More)

Buying your first home in Alberta costs less out of pocket than most people think, because four federal programs stack together to cut your down payment, your taxes, and your closing bill. The FHSA, the RRSP Home Buyers' Plan, the Home Buyers' Amount, and a new GST rebate on new homes can together free up tens of thousands of dollars. Here is how each one works and how to combine them against real Edmonton prices.

What counts as a first-time buyer

The federal rule is the same for both the FHSA and the Home Buyers' Plan. You are a first-time buyer if you have not lived in a home you (or your spouse or common-law partner) owned at any time in the current calendar year or the previous four calendar years.

So if you sold a home you lived in six years ago and have rented since, you can qualify again. This four-year reset surprises a lot of people who assume "first-time" means literally never owning.

The FHSA: your best first move

The First Home Savings Account is the strongest tool because it works like an RRSP and a TFSA at the same time. Your contributions are tax-deductible, the investment growth inside the account is tax-free, and qualifying withdrawals to buy your first home are also tax-free.

You can contribute $8,000 per year up to a $40,000 lifetime maximum. Unused room carries forward, but only up to $8,000 at a time, so the most you can ever contribute in a single year is $16,000 (one carried-forward $8,000 plus the current $8,000).

To open one you must be a Canadian resident aged 18 to 71 and meet the first-time buyer definition above. The account has a shelf life: you must close it by December 31 of the year you turn 71, or 15 years after you open your first FHSA, whichever comes first. If you do not buy by then, the money rolls tax-free into your RRSP or RRIF, so it is never wasted.

The RRSP Home Buyers' Plan: a $60,000 loan to yourself

The Home Buyers' Plan (HBP) lets you withdraw money you have already saved in your RRSP to put toward a first home. As of Budget 2024 the limit rose to $60,000 per person, which means a couple with separate RRSPs can pull out up to $120,000 combined.

The catch is that this is a loan from yourself. You repay it to your RRSP over 15 years. If you miss a yearly repayment, that amount gets added to your taxable income for the year.

Stacking FHSA + HBP on a real Edmonton home

Here is the part that changes the math. The Canada Revenue Agency confirms you can make both an FHSA withdrawal and an RRSP HBP withdrawal for the same qualifying home, as long as you meet the conditions for each account.

That means a single buyer can stack a full $40,000 FHSA plus a $60,000 HBP for up to $100,000 toward one purchase. A couple doing the same could reach $200,000.

Set that against the Edmonton market. The median sold price for an Edmonton home is $476,415, and these homes are moving at a median of 29 Days on hômm. On a home at that price, the minimum down payment is 5% of the price, which is about $23,821.

In other words, a fully funded FHSA alone ($40,000) already covers the minimum 5% down on a typical Edmonton home with thousands to spare for closing costs. Add the HBP and a couple can comfortably clear a 20% down payment ($95,283 on a $476,415 home), which removes CMHC insurance entirely. Want to see what price your savings actually support? Run your numbers through the hômm affordability calculator to find your maximum purchase price after the mortgage stress test, then sanity-check the monthly payment with the mortgage payment calculator.

Down payment rules and CMHC insurance

These are federal rules that apply across Canada. Your minimum down payment depends on price. For homes priced $500,000 or less, it is 5% of the purchase price. For homes between $500,000 and $1,499,999, it is 5% on the first $500,000 plus 10% on the portion above $500,000. At $1,500,000 or more, CMHC insurance is not available, so you need at least 20% down.

If you put down less than 20%, you pay a CMHC mortgage default insurance premium. At 5% down the premium is 4.00% of the mortgage amount. At 10% down it drops to 3.10%, and at 15% down it is 2.80%. At 20% or more, no premium applies. You can estimate yours with the CMHC insurance calculator.

Two federal 2024 reforms help first-time buyers directly. The insured mortgage price cap rose from $1 million to $1.5 million on December 15, 2024, the first change since 2012. On the same date, 30-year amortizations became available to all first-time buyers and all buyers of new builds across Canada, which lowers the monthly payment.

The stress test still applies

Every insured and uninsured mortgage in Canada must pass a stress test. You have to qualify at the greater of your contract rate plus 2%, or 5.25%, whichever is higher. This is why your approved price is usually lower than what the raw payment math suggests.

One recent relief: since November 21, 2024, OSFI no longer requires the stress test for borrowers who do a straight switch to a new lender at renewal. That does not affect your first purchase, but it matters later when your term comes up.

Two more credits worth claiming

Beyond the savings accounts, two tax measures put cash back in your pocket. The Home Buyers' Amount is a federal non-refundable credit of up to $10,000 on line 31270 of your return, worth up to $1,400 in actual tax savings at the current 14% lowest federal rate. You claim it the year you buy.

If you are a first-time buyer purchasing a qualifying new build, the federal First-Time Home Buyers' GST Rebate (announced May 2025) eliminates GST for first-time buyers on new homes valued up to $1,000,000, saving up to $50,000, and partially reduces it on homes between $1,000,000 and $1,500,000. It applies Canada-wide to agreements signed on or after May 27, 2025 and before 2031. Alberta also has no land transfer tax, which already saves buyers here thousands compared with Ontario or B.C.

Frequently Asked Questions

Can I use both the FHSA and the RRSP Home Buyers' Plan for the same home?

Yes. The Canada Revenue Agency confirms you can make a qualifying FHSA withdrawal and an RRSP Home Buyers' Plan withdrawal for the same qualifying home purchase, provided you meet all conditions for each account at the time of each withdrawal. A single buyer can stack up to $40,000 from an FHSA and $60,000 from the HBP for $100,000 total.

How much do I need to put down on a typical Edmonton home?

The minimum down payment is 5% on homes priced $500,000 or less. With the median Edmonton home selling for $476,415, that is roughly $23,821. Putting down less than 20% means you also pay a CMHC insurance premium, which starts at 4.00% of the mortgage amount at 5% down.

Do I have to repay FHSA withdrawals like the Home Buyers' Plan?

No. Qualifying FHSA withdrawals for a first home are tax-free and do not have to be repaid. The Home Buyers' Plan is different: it is a withdrawal from your RRSP that you must repay over 15 years, or the missed amount is added to your taxable income that year.

What is the FHSA contribution limit and does unused room carry forward?

You can contribute $8,000 per year up to a $40,000 lifetime maximum. Unused room carries forward, but only up to $8,000 at a time, so the most you can contribute in a single year is $16,000. You must open the account to start accumulating room.

Am I still a first-time buyer if I owned a home years ago?

Possibly. For both the FHSA and the HBP, you qualify if you have not lived in a home you or your spouse or common-law partner owned at any time in the current calendar year or the previous four calendar years. After a four-year gap as a non-owner-occupant, you can qualify again.