Canada's housing affordability crisis is among the most severe in the world. The average home price nationally exceeded $700,000 in major markets — with Toronto and Vancouver averaging well over $1 million. The federal government has introduced several programs to help first-time buyers.
The key numbers (2026)
The First Home Savings Account (FHSA) — the best tool
The FHSA combines the best features of TFSA and RRSP for first home buyers:
- Contributions are tax-deductible (like RRSP)
- Withdrawals for a qualifying first home are tax-free (like TFSA)
- Annual limit: $8,000. Lifetime limit: $40,000
- Unused room carries forward one year
- A couple, both with FHSAs: $80,000 in combined tax-free first home savings
The RRSP Home Buyers' Plan (HBP)
First-time buyers can withdraw up to $35,000 from their RRSP tax-free for a home purchase (raised from $25,000 in 2024). A couple can withdraw $70,000 combined. The withdrawal must be repaid to the RRSP over 15 years (1/15th per year), or the unpaid amount is included as income.
Down payment requirements
| Purchase price | Minimum down payment | CMHC insurance? |
|---|---|---|
| Under $500,000 | 5% | Yes (up to 4% of mortgage) |
| $500,001–$999,999 | 5% on first $500k + 10% on remainder | Yes |
| $1,000,000+ | 20% | No (CMHC doesn't insure these) |
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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