First-time home buyers: rates, 30-year amortizations and federal programs
First-time buyers with under 20% down get insured rates (the lowest insured 5-year fixed we collected was 4.34%), can take a 30-year amortization since December 15, 2024, and can draw up to $60,000 from an RRSP under the Home Buyers' Plan and save in a First Home Savings Account.
Your rates
With under 20% down your mortgage is insured, which usually means the lowest published rates. Compare offers with the board's insured column.
25 vs 30 years
| Amortization | Premium | Monthly | Interest, first 5 years |
|---|---|---|---|
| 25 years | 4.00% | $2,831.99 | $105,243 |
| 30 years | 4.20% | $2,578.67 | $107,207 |
A 30-year amortization lowers the payment but costs more interest and adds 0.20 points to the insurance premium.
Source: Department of Finance Canada, Mortgage reforms in force: $1.5M insured cap, 30-year amortizations, effective December 15, 2024. Checked .| Borrowed | $500,000 + CMHC premium |
|---|---|
| Rate | 4.34%lowest insured 5-yr fixed collected |
| 25 years: payment | $2,831.994.00% premium |
| 30 years: payment | $2,578.674.20% premium |
| 30 years lowers the payment by | $253.32 a monthbut adds $1,964 of interest in the first 5 years |
HBP and FHSA
The RRSP Home Buyers' Plan lets you withdraw up to $60,000 tax-free to buy a first home; for first withdrawals made from January 1, 2026 to December 31, 2028, the start of the 15-year repayment period is deferred to the fifth year after the withdrawal year (CRA). The First Home Savings Account gives you $8,000 of participation room in the first year you open it.
Source: Canada Revenue Agency, What is the Home Buyers' Plan, effective February 17, 2026. Checked .Source: Canada Revenue Agency, First Home Savings Account (FHSA), effective February 2, 2026. Checked .Steps
- Check your credit report and pay down debts.
- Work out your budget on our affordability calculator and the stress test.
- Get a pre-approval with a rate hold; compare it with the board.
- Budget closing costs on top of the down payment.
What this means for you
- Use both programs: the HBP and an FHSA can be combined toward the same home.
- 30 years: take it only if the lower payment is what makes the purchase work; you can prepay later.
- Compare insured rates: use the board's insured column, the one that applies to you.
Frequently asked questions
Can first-time buyers get a 30-year mortgage?
Yes. Since December 15, 2024, first-time buyers (and buyers of new builds) can take a 30-year amortization on an insured mortgage.
How much can I take from my RRSP?
Up to $60,000 under the Home Buyers' Plan, per CRA.
Primary sources
- Department of Finance Canada — Mortgage reforms in force: $1.5M insured cap, 30-year amortizations (effective December 15, 2024). Checked .
- Canada Revenue Agency — What is the Home Buyers' Plan (effective February 17, 2026). Checked .
- Canada Revenue Agency — First Home Savings Account (FHSA) (effective February 2, 2026). Checked .
- CMHC — Mortgage loan insurance: Purchase (minimum down payment, credit score, price cap). Checked .