Can You Be a First-Time Home Buyer Again in Canada?

Many Canadians are surprised to learn that yes, you can sometimes be considered a first-time home buyer again, even if you’ve owned a home before.

The key is that “first-time” means different things depending on the mortgage program, tax credit, or rebate you’re applying for. At Mortgage Okanagan, we help clients across Canada navigate these rules so they don’t miss out on benefits they might still qualify for.

How the Government of Canada defines a first-time home buyer.

For most federal programs, like the First-Time Home Buyer Incentive or the Home Buyers’ Plan (HBP), you are considered a first-time home buyer if:

• You have not owned a home that you lived in as your principal residence in the last four calendar years
• You’re not currently living in a home owned by your spouse or common-law partner

Example:
If you sold your last principal residence in 2020 and have been renting since, you could qualify again in 2025.

Using the Home Buyers’ Plan (HBP) again.

The HBP allows you to withdraw up to $60,000 (as of 2024) from your RRSP to buy or build a home. You can use it more than once if:

• You meet the four-year rule above
• You’ve fully repaid any previous HBP withdrawals

First-Time Home Buyer Tax Credit (HBTC)

This non-refundable federal tax credit can help offset closing costs. For HBTC purposes, you can re-qualify after the four years without owning a principal residence during that time. 

Eligible Canadians can claim up to $10,000 on their federal income tax during the year they purchase their first home to receive a tax credit of up to $1,500.

BC’s First-Time Home Buyers’ Program

If you’re buying in British Columbia, it’s important to note that the BC First-Time Home Buyers’ Program, which offers a property transfer tax exemption, has stricter rules. You must:

• Never have owned a principal residence anywhere in the world
• Never have received a first-time home buyers’ exemption before

In other words, for BC’s property transfer tax exemption, once you’ve owned a home, you can’t qualify again… no matter how much time has passed.

When you might qualify as a first-time buyer again.

You might be eligible for federal first-time home buyer programs again if:

• You’ve been renting for at least four years after selling your last home
• You’ve separated or divorced (some programs waive the four-year rule)
• You meet the unique criteria for the specific program you’re applying to with my help. 

Why you should work with a mortgage broker.

Rules for first-time home buyer programs can be confusing, especially when federal, provincial, and municipal definitions don’t match. At Mortgage Okanagan, we can review your full homeownership history. We’ll be able to identify which programs and rebates you can still access. Plus, we’ll create a mortgage strategy that works for your situation and your long-term goals. 

Know your situation and call Mortgage Okanagan.

Whether you can be a first-time home buyer again in Canada depends on the program you’re applying for. Some federal incentives allow it after four years, while BC’s property transfer tax exemption does not.

If you’re wondering if you qualify again, contact Mortgage Okanagan. We’ll walk you through your options, confirm your eligibility, and ensure you gain access to any programs that can help you along your home-buying journey.  Please call me at 250-826-3111, apply through my website, or contact me via my online contact form to begin the process today.