What You Need to Know to Advise Clients Confidently in 2025
In today’s real estate market, affordability remains one of the biggest challenges facing Canadian homebuyers, particularly first-time buyers. As interest rates and home prices stretch budgets, more clients are leaning on government-backed programs to help them enter the market.
Understanding these incentives isn’t just helpful for realtors—it’s essential. Whether you’re advising buyers on savings timelines, navigating closing costs, or collaborating with mortgage professionals, speaking confidently about the programs your clients may be relying on builds trust and strengthens your value as an advisor.
Here’s what you need to know about the First Home Savings Account (FHSA), RRSP Home Buyers’ Plan (HBP), tax credits, regional rebates in 2025—plus insight into a recently discontinued program that could still impact your deals.
First Home Savings Account (FHSA)
The FHSA has quickly become one of Canada’s most essential tools for first-time homebuyers. Launched in 2023, the account combines the tax advantages of an RRSP and TFSA, making it a smart option for clients planning to buy in the next few years.
Key Details
- Annual contribution limit: $8,000
- Lifetime contribution limit: $40,000
- Withdrawals are tax-free when used for a qualifying first home
- Contributions are tax-deductible
- Eligibility: Canadian resident, at least 18 years old, and must not have owned a home in the current or previous four calendar years
Why It Matters for Realtors
Clients using the FHSA may delay their purchase while building up savings. Understanding where they are in their contribution timeline helps you forecast their readiness and pace your engagement accordingly. Many buyers are also unaware they can combine the FHSA with other incentives like the HBP, giving you a chance to offer proactive, value-added advice.
RRSP Home Buyers’ Plan (HBP)
The HBP allows clients to withdraw from their RRSP tax-free to fund a home purchase, with repayment required over 15 years. This program remains widely used, particularly for buyers with established retirement savings.
Key Details
- Maximum withdrawal: $60,000 per person
- Repayment begins two years after withdrawal, over 15 years
- Must be a first-time buyer or assisting a relative with a disability
- Can be combined with the FHSA for increased purchasing power
Realtor Insight
Clients don’t always realize the HBP and FHSA can be stacked. This combination allows individuals or couples to access over $100,000–$200,000 in tax-advantaged funds, significantly boosting their buying potential. Consider collaborating with mortgage brokers or financial advisors to help buyers maximize their strategy.
First-Time Home Buyers’ Tax Credit
Sometimes overlooked, this tax credit offers a modest but meaningful benefit post-purchase.
Key Details
- Credit amount: $10,000
- Tax benefit: Up to $1,500 in non-refundable federal tax relief
- Eligibility: First-time homebuyers who purchase a qualifying home
What to Know:
This credit won’t affect a client’s ability to close, but can be part of the broader affordability conversation. Bringing it up early shows you’re paying attention to the whole financial picture— even after the deal is done.
Land Transfer Tax Rebates (Provincial and Municipal)
Closing costs often catch buyers off guard, especially in markets with high land transfer taxes. Provincial and municipal rebates can help, but the rules vary widely.
Examples by Region: British Columbia
- Full exemption on homes up to $500,000 for first-time buyers
- Partial exemption on homes up to $525,000
Ontario - Up to $4,000 rebate on the provincial land transfer tax
- Additional rebate of up to $4,475 for Toronto’s municipal land transfer tax
Realtor Tip:
Thresholds and eligibility criteria change. Confirm current details through provincial government sources or closing professionals when working with first-time buyers. These rebates can majorly impact final numbers and should be factored in early.
Recently Phased Out: First-Time Home Buyer Incentive (FTHBI)
The FTHBI—a shared equity program introduced in 2019—was officially discontinued in 2024, but some clients may still be participating.
Key Details
- Provided 5–10% in down payment assistance
- Operated as a shared equity loan repayable based on the home value
- No longer accepting new applications as of March 2024
What Agents Should Know:
If your client used this program in the past, they may require support when selling or refinancing. Familiarity with how repayments are calculated based on the current fair market value can help you provide clarity and refer them to the right professionals.
Conclusion: Incentive Awareness is Part of Your Competitive Advantage
As affordability continues to shape buyer behaviour, agents who understand the tools available— from savings accounts to tax credits—will be better equipped to support their clients and grow their business. Incorporating incentive knowledge into your client intake process helps you:
- Identify qualified buyers earlier
- Align timelines with contribution strategies
- Build trust through well-rounded financial guidance
Make these conversations part of your standard buyer process, and don’t hesitate to collaborate with financial planners, mortgage brokers, and legal advisors. Informed clients close with more confidence, and informed agents stay ahead.
