How to Qualify as a First-Time Homebuyer Twice

Can you do something once and then do it again as if it were your “first time”? When it comes to buying a home in Canada, the answer can sometimes be yes. Several federal, provincial and municipal programs are aimed at first-time buyers, including the Home Buyers’ Plan (HBP) and the first home savings account (FHSA). Other incentives—such as land transfer tax rebates, credits and down payment assistance—also exist in many jurisdictions. While many programs exclude previous homeowners, some allow repeat participation under specific conditions.

Whether you can qualify as a first-time buyer more than once depends on the program. Each initiative defines “first-time home buyer” differently, so eligibility varies. Below is a clear overview of the major programs and when someone may be able to use them again.

Can you qualify as a first-time home buyer twice?

Yes—sometimes. Individual programs set their own rules about prior ownership, residence and timing. It’s important to check each program’s requirements. Some federal programs are more flexible, while many provincial and municipal incentives are stricter and strictly exclude anyone who has ever owned property anywhere in the world.

The Home Buyers’ Plan

The Home Buyers’ Plan (HBP) is a federal program that lets qualifying buyers withdraw money from their registered retirement savings plan (RRSP) to buy or build a home. As of April 16, 2024, eligible individuals may withdraw up to $60,000 from their RRSP (couples can combine totals up to $120,000). Withdrawn funds must be repaid to the RRSP over a 15-year period; otherwise, required repayments that are not made are treated as taxable income.

To qualify under the HBP, you must meet the program’s definition of a first-time home buyer. The HBP considers someone a first-time buyer if they did not own, or occupy a home owned by their spouse or common-law partner, in the four years preceding the withdrawal. That four-year look-back is counted from Jan. 1 of the fourth year before the withdrawal year, which effectively makes the window longer than it first appears. For example, if you plan to withdraw on Nov. 15, 2024, you must not have owned a home since at least Jan. 1, 2020.

There are exceptions for separated partners. Under rules introduced in 2019, a person who has been living separate and apart from a spouse or common-law partner for at least 90 days may qualify again, provided they are not living in a home owned by a new partner at the time of withdrawal. Additionally, to use the HBP a second time you must have repaid any prior HBP balance in full before Jan. 1 of the year you make the new withdrawal. Depending on the amount previously withdrawn, fully repaying within that timeframe can be challenging.

The first home savings account

The first home savings account (FHSA) is a registered account designed to help Canadians save for a down payment. Residents age 18 and over can contribute up to $8,000 per year, up to a lifetime maximum of $40,000. Contributions are tax-deductible and qualifying withdrawals to buy a first home are tax-free.

Unlike some other programs, the FHSA requires you to qualify as a first-time home buyer at two moments: when you open the account and when you withdraw funds to buy a home. That means you must meet the account-opening definition and also meet the withdrawal requirements when you make a qualifying purchase.

At account opening:

You must not have lived in a qualifying home that you owned or jointly owned in the calendar year before opening the FHSA, or in any of the four preceding calendar years.
You must not have lived in a qualifying home that your spouse or common-law partner owned or jointly owned in the calendar year before opening the FHSA, or in any of the four preceding calendar years.

At the time of a qualifying withdrawal:

You generally must not have lived in a qualifying home during the current calendar year before the withdrawal (with a narrow 30-day exception immediately before the withdrawal) or in any of the four preceding calendar years.
The rules also require that you did not occupy a qualifying home as your principal residence that you owned or jointly owned during the current calendar year before the withdrawal or at any time in the four preceding calendar years.

Land transfer tax rebates

Land transfer taxes or fees are a common and sometimes large cost when buying property in Canada. Several jurisdictions—including some provinces and large municipalities—offer rebates for first-time buyers, but these programs are usually the most restrictive. Many land transfer tax rebates require that you have never previously owned any share of a property anywhere in the world, and living in or having been gifted a property can count as prior ownership under these rules.

Because these rebate programs are strict, many buyers who have previously owned a home—even years earlier—may be ineligible for land transfer tax relief.

More provincial and territorial programs

Beyond land transfer tax rebates, provinces and territories run a range of programs that may include tax credits, down payment assistance and forgivable loans for first-time buyers. Credit amounts, loan terms and eligibility criteria vary widely by jurisdiction. Some programs are fairly liberal about what counts as prior ownership, while others explicitly disqualify anyone who has ever held title to property.

If you’ve owned property before, check each program’s specific rules or speak with a professional to see whether you might still qualify for assistance locally. Eligibility is program-specific and can hinge on timing, separation status, repayment of prior benefits and whether previous ownership occurred in your name or a partner’s.

Why it can help to be a first-time buyer again

First-time buyer incentives can meaningfully reduce the cost or accelerate the timeline of purchasing a home. For some buyers, programs at the federal, provincial or municipal level make it possible to afford a larger mortgage or buy sooner than planned. If you believe you may qualify for a program again, it’s worth investigating—the benefits can be substantial.

Because rules differ and eligibility often depends on your precise circumstances, speak with a mortgage broker or a financial advisor who understands these programs. A professional can clarify whether you meet the definitions, whether past withdrawals or ownership affect your eligibility, and whether repaying previous benefits is required before accessing a program again.

Buying a first home twice

In Canada, certain programs allow the practical equivalent of being a “first-time buyer” more than once—provided you meet their specific conditions. The key is that definitions of first-time home buyer vary, and some programs’ timelines or separation exceptions can permit repeat access. If you’re considering using a first-time buyer program again, check the rules carefully and get professional advice tailored to your situation.