If you’re buying your first home in Manitoba, several provincial and federal incentives are designed to help make homeownership more affordable. From government programs that include tax incentives and rebates to forgivable loans, these initiatives can help reduce the initial costs of homeownership and make your mortgage more manageable.

Whether you’re looking for down payment assistance, tax rebates, or other financial support, knowing what options are available to first-time buyers in Manitoba can help you make the most of the benefits you qualify for.

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Key Takeaways

• Manitoba’s provincial incentives assist first-time homebuyers (FTHB) through down payment assistance and grants to help cover closing costs.
• The Manitoba Affordable Homes Program provides down payment assistance in select rural communities.
• Federal programs like the RRSP Home Buyer’s Plan and the Home Buyers’ Amount tax credit are also available.

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Manitoba First-Time Home Buyer Incentives

First-time buyer incentives in Manitoba are designed to provide financial assistance to buyers purchasing their first home.

Affordable Homes Program – available in select rural communities, the program provides financial assistance through a forgivable loan. 

First Time Home Purchase Program (FTHPP) – designed to help Metis citizens with down payment and closing costs so they can purchase their first home. 

Manitoba Affordable Homes Program

Manitoba Housing offers an affordable homes program in select rural communities. Due to the demand for rental housing, the program excludes urban centres. Manitoba Housing provides additional assistance under the program, including having the land transfer taxes covered by them and a non-refundable grant of $1,500 to assist with legal fees and other costs. A second non-refundable grant of $1,000 to assist with moving costs is available to those who purchase a vacant home. 

The program offers two streams that can help first-time buyers purchase a home. To be eligible for either stream, you must not currently own a home or other property, the home you purchase must be your primary residence, you must qualify for a mortgage through a financial institution, and your household income must not exceed $67,900 for households without children and $90,500 for households with children. 

Tenant Affordable Homes Stream

Manitoba Housing tenants who qualify may be able to purchase the single-detached home they currently rent from Manitoba Housing through this stream of the program. They may also be able to purchase a different vacant home owned by Manitoba Housing in select rural communities. 

Vacant Affordable Homes Stream

If you are not currently a tenant and want to purchase a home from Manitoba Housing, qualifying applicants may be able to purchase a vacant home owned by Manitoba Housing through this stream in a select rural community. 

Applicants who qualify for either stream will receive financial assistance towards their down payment. The down payment assistance has two components:

• 10% of the purchase price, which is forgivable over 5 years. A fifth of the down payment assistance is forgiven each year you own and live in the home. After 5 years, the loan amount will be reduced to 0.
• 15% or 25% of the purchase price is forgivable over 15 years of continuous ownership and occupancy. If you own and live in the home for 15 years or longer, you do not need to repay the 15% or 25% portion of the down payment assistance. 

To qualify for the 25% down payment assistance, applicants must meet all qualification criteria and have a household income that doesn’t exceed $46,500. 

First Time Home Purchase Program

The Manitoba Metis Federation offers a program through the Louis Riel Capital Corporation (LRCC) designed to help Metis citizens with down payment and closing costs when purchasing their first home. Qualifying applicants can receive a grant of 5% of the home purchase price up to a maximum of $18,000 as down payment assistance and 1.5% up to a maximum of $2,500 toward closing costs.  

Federal First-Time Home Buyer Programs

In addition to the provincial incentives available to residents of Manitoba, the following federal programs are also available and can be used to help you purchase your first home. 

RRSP Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HPB) allows first-time buyers to access up to $60,000 tax-free from their Registered Retirement Savings Plan (RRSP) to use towards the purchase of their first home. The plan allows a 2-year grace period where repayments are not required.  After the 2 years, the amount withdrawn remains tax-free as long as it is repaid into the RRSP in equal installments over 15 years.

Home Buyers’ Amount

The Home buyers’ amount is a tax credit available to eligible first-time home buyers in Canada. The incentive allows you to claim up to $10,000, providing a tax refund of up to $1,500 on your income tax return. You can split the amount between eligible spouses or other homebuyers acquiring the property jointly.

GST/HST New Housing Rebate

The GST/HST New Housing Rebate helps reduce the overall cost of buying a new home by providing a rebate on the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) when purchasing a newly built or substantially renovated home. The rebate amount depends on the province where the home is located and whether a rebate is available on the provincial portion of taxes in addition to the federal taxes. 

Frequently Asked Questions (FAQ) on First-Time Home Buyers Incentives in Manitoba

Final Thoughts

Manitoba remains one of Canada’s more affordable provinces, giving first-time buyers a slight advantage compared to areas with higher real estate prices. Knowing the first-time buyer incentives available can help you better budget your down payment and closing costs if you’re searching for your first home in the province. 

If you’re ready to purchase your first home, contact nesto mortgage experts today to find your best mortgage rate in Manitoba.

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