5 financial incentives for first‑time home buyers

September 07, 2020

Interest‑free loans, tax credits and tax exemptions. There are many financial incentives available to encourage the purchase of a first property, including a prefabricated home. In this article, you’ll discover the programs and measures available to help you take advantage of a number of benefits and make your dream of acquiring a ProFab property a reality under the best possible conditions. 


The Home Buyers’ Plan (HBP) is a Government of Canada program that allows you to withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) to purchase your first home. If you are buying as a couple, this financial incentive allows you to double this amount and access up to $70,000 for your downpayment. 

Main advantage: When you withdraw this amount, you pay no tax or interest. However, you must repay the entire amount within a period not exceeding 15 years. You must also meet certain conditions, including: 

  • Be considered a first‑time buyer 
  • Have a written agreement to purchase or build a qualifying home 
  • Be a Canadian resident at the time you withdraw funds from your RRSP until the purchase or construction of the property is completed 
  • Intend to occupy the property as your principal residence within one year of purchase or construction 

Good news! You can participate in the HBP a second time. To do so, your refundable balance as of January 1 of the withdrawal year must be zero, and you must meet all other eligibility conditions*


The Tax‑Free First Home Savings Account (FHSA) is a federal government financial incentive that was introduced in 2023. It will enable future buyers to save up to $8,000 annually or $40,000 for life—tax‑free. Like an RRSP, contributions will be tax‑deductible. What’s more, withdrawals for the purchase of a first home, including investment income, will be tax‑free, as is the case with a Tax‑Free Savings Account (TFSA). It’s a great way to build up a downpayment for your new manufactured home! 

To take advantage of the FHSA*, you must: 

  • Be a resident of Canada 
  • Be at least 18 years old 
  • Be a first‑time home buyer, which means you have not owned a home in which you have lived in the year preceding the opening of the account or in the four preceding years. 
Modèle Distinguée est une maison plain-pied de style contemporain . Vue de l'extérieur.


The First-Time Home Buyer Incentive (FHBI) is an initiative introduced by the Canadian government in 2019. It is aimed at first‑time buyers with a family income that does not exceed $120,000. 

With this program, you could obtain up to 5% of the purchase price of a manufactured home for your down payment. In other words, the FHBI allows you to increase your down payment (but not replace it) by reducing your mortgage payments. 

This interest-free loan, managed by the Canada Mortgage and Housing Corporation (CMHC), is repayable after 25 years or when the property is put up for sale. The repayment amount will then be calculated on the basis of the home’s market value. 

To take advantage of this financial incentive, you must acquire a property located in Canada that is habitable and accessible year‑round. What’s more, the property must be intended for you and cannot be used as an investment property. 

Want to find out more? Visit the FHBI web page for eligibility criteria and reimbursement terms and conditions. 


Another Government of Canada measure: the First-Time Home Buyers’ Tax Credit (HBTC). Starting in 2022, this financial incentive of up to $10,000 can result in a tax reduction of up to $1,500. This is in addition to a $750 non‑refundable tax credit from the Québec Government. 

You can claim this tax credit if: 

  • You or your spouse have purchased a qualifying home 
  • You have not lived in any other property you or your spouse owned during the year of acquisition or the four preceding years.

Visit the HBTC web page for eligibility requirements, or contact an accounting professional to find out how to claim this tax credit when filing your income tax return.

The Citana model is a contemporary single-storey home. Exterior view


Some cities and municipalities in Québec now offer first‑time buyers a property tax vacation, also known as a “Welcome Tax.” The period covered ranges from one to five years. Ask them about the various financial incentives available. 

In sum, there are a number of financial incentives and means that can help you become a homeowner under the best possible conditions. Improving your credit rating, saving for your downpayment, and evaluating your budget and your needs are just some of the many steps in the home‑buying process that can work in your favour. Just keep your eyes open! 

Is home ownership something you’ve been planning for a long time? Contact our team of experts to turn your dream into reality and benefit from over 30 years of experience in prefabricated home construction. They can then put you in contact with financing specialists and answer any questions you may have about the financial incentives we’ve just presented. 

*Visit the Government of Canada website for more information on these financial incentives.