Buying your first home is an exciting milestone — but in Calgary’s competitive real estate market, it can also be financially intimidating.
The good news? First-time buyers in Alberta can make homeownership more affordable through a number of federal incentives.
From tax credits and GST rebates to longer mortgage amortization options, there are multiple new ways to reduce your upfront costs and monthly payments.
This guide covers 5 essential incentives and savings programs available to Alberta’s first-time buyers in 2025 — including updates on recent changes that could put thousands of dollars back in your pocket.
Who We Are
Reeves & Associates, led by award-winning REALTOR® Erin Reeves, has helped hundreds of Calgary families and first-time buyers find homes in Calgary’s most livable neighbourhoods.
With 160+ five-star reviews and 19+ years of experience, we offer insider knowledge, builder relationships, and expert guidance every step of the way.
Whether you’re shopping for your first townhome in the southeast or building new in a master-planned community, we’re here to help you buy smarter.
First-Time Buyer Incentives in Alberta (2025)
1. First Home Savings Account (FHSA) — Save Up to $40,000 Tax-Free
One of the most powerful new tools for buyers, the FHSA lets first-time homebuyers save for their down payment tax-free — combining the best of RRSP and TFSA rules.
FHSA Benefits:
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Contribute up to $8,000/year (lifetime limit: $40,000)
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Contributions are tax-deductible
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Withdrawals are tax-free if used to buy a qualifying home
This program gives you immediate tax savings and long-term growth — helping you build your down payment faster.
Learn more from CRA’s FHSA page
2. Home Buyers' Plan (HBP) — Borrow Up to $60,000 from Your RRSP
The Home Buyers’ Plan lets you borrow from your own RRSP to buy your first home — tax-free — as long as you repay it over time.
Key Details:
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Withdraw up to $60,000 from your RRSP (up from $35,000 in previous years)
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Must be repaid over 15 years
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No tax on the withdrawal if repayment schedule is followed
Pro tip: You can combine the FHSA and HBP for up to $100,000 in down payment support if you qualify.
3. Home Buyers’ Tax Credit (HBTC) — Get $1,500 Back at Tax Time
First-time buyers can claim the Home Buyers’ Tax Credit — a non-refundable federal tax credit worth up to $1,500. You can claim the credit when you file your personal income tax return for the year in which you purchased your home.
Who qualifies:
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You (or your spouse/common-law partner) bought a qualifying home
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You must intend to live in it as your principal residence within one year of purchase.
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You haven’t owned a home in the last 4 years
How to Claim it:
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Enter $10,000 in Line 31270 on your tax return (formerly 369)
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The actual tax credit is 15% of that, which equals $1,500 in tax savings
This credit helps offset closing costs like legal fees and inspections.
4. GST New Housing Rebate — Save Up to $8,750
If you’re buying a new build or substantially renovated home, you may be eligible for a GST rebate from the federal government.
GST Rebate Details:
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Up to 36% of the GST paid on a home valued under $350,000
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Partial rebate available for homes between $350,000 and $450,000
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Must use the home as your primary residence
While Alberta doesn’t have PST or HST, GST still applies to new construction — so this rebate can significantly reduce your costs.
Full eligibility details available at CRA's GST Rebate Guide
5. 30-Year Mortgage Option for First-Time Buyers (CMHC-Insured)
As of 2025, first-time buyers who need mortgage insurance (typically those with less than 20% down) may qualify for 30-year amortizations.
Why this matters:
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Lower monthly payments = easier budgeting
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Helps you qualify for more home under current mortgage stress test rules
Keep in mind: A longer amortization means you’ll pay more interest over time, but it can make all the difference in qualifying.
6. Land Transfer Tax in Alberta? None!
Unlike BC or Ontario, Alberta does not charge a provincial land transfer tax — which instantly saves you thousands in closing costs.
For comparison, buyers in BC might pay up to $15,000+ in property transfer tax. In Alberta? It’s zero.
You’ll still pay minor registration fees ($50 to $200), but that’s a huge financial advantage for first-time buyers.
Thinking About Buying Your First Home in Calgary?
At Reeves & Associates REALTORS®, we specialize in helping first-time home buyers navigate the process, understand the programs, and secure homes they love — without the guesswork.
From builder incentives to community fit to creative financing strategies, our team ensures your first purchase is a smart one.
Let’s talk about how you can maximize your savings and start building equity in today’s market.
Call Erin Reeves today at 587-200-2728 or send us a message.
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