First-Time Home Buyers Incentives in Saskatchewan
Table of contents
Saskatchewan offers a variety of incentives to help first-time home buyers navigate the financial hurdles of purchasing their first property. Multiple avenues exist to make homeownership more affordable, from provincial tax credits and PST rebates on new construction to programs specifically for Métis citizens. In addition to provincial incentives, buyers in the province may also be eligible to apply for federal programs to reduce the upfront costs of homeownership.
Key Takeaways
- Saskatchewan’s provincial incentives for first-time home buyers include a tax credit, PST rebate, and a program for Métis citizens.
- Federal programs can be combined with provincial incentives to reduce the costs of buying a first home.
- Eligibility requirements and the amount of assistance available vary for each program.
Saskatchewan First-Time Home Buyer Incentives
First-time home buyer incentives in Saskatchewan are designed to assist with the upfront costs of purchasing your first home. The First-Time Homebuyers’ Tax Credit provides a non-refundable tax credit to eligible taxpayers. Meanwhile, the Saskatchewan PST Rebate for New Home Construction provides a rebate on the provincial sales tax (PST) paid on newly constructed homes. Métis citizens can also benefit from the Métis Nation – Saskatchewan First-Time Home Buyers Program, which assists with down payment and closing costs.
First-Time Homebuyers’ Tax Credit
The First-Time Homebuyers’ Tax Credit is a provincial non-refundable tax credit that can be claimed by eligible first-time buyers on their income tax return. Like the federal income tax credit, this provincial credit allows you to claim up to $10,000 on your income tax return for a maximum refund of up to $1,050. Eligibility requirements mirror those of the federal tax credit.
For the 2025 tax year and beyond, the Saskatchewan Affordability Act has announced that the First-Time Homebuyers’ Tax Credit amount will increase. These new limits will allow you to claim up to $15,000 for a maximum refund of up to $1,575.
Saskatchewan PST Rebate for New Home Construction
The Provincial Sales Tax (PST) Rebate for New Home Construction provides a rebate of up to 42% on the provincial portion of taxes paid when purchasing or building a newly constructed home. Unlike the federal GST/HST rebate, the provincial rebate does not apply to substantially renovated homes.
Métis Nation – Saskatchewan First Time Home Buyers’ Program
The First Time Home Buyers’ Program is designed exclusively for Métis citizens in Saskatchewan who are purchasing their first home through an indirect grant to help with down payment and legal fee costs. The program provides a maximum of $15,000 toward the down payment and $2,500 toward legal fees associated with the home purchase.
The program also assists Métis citizens through referrals to local professionals, including realtors, bankers, mortgage brokers, lawyers and more, to help complete the homebuying process. The primary applicant must be a member of the Métis Nation – Saskatchewan. Additionally, applicants can only participate in the program once in their lifetime and must reside in the home as their primary residence for a minimum of 5 years.
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Federal First-Time Home Buyer Programs
In addition to the provincial programs offered in Saskatchewan, various programs at the federal level can be leveraged to offset the upfront costs of homeownership.
RRSP Home Buyer’s Plan
The Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 (or up to $120,000 jointly for a couple) from their Registered Retirement Savings Plan (RRSP) to use toward purchasing a home. The withdrawal is tax-free and acts like a loan with a 2-year grace period where you do not have to repay any amount. However, the amount withdrawn under the plan only remains tax-free if repaid in equal installments within 15 years once the 2-year grace period ends.
Home Buyers’ Amount
The home buyers’ amount allows first-time home buyers to claim up to $10,000 at tax time for a tax rebate of up to $1,500. To be eligible, you must acquire a qualifying home and be considered a first-time home buyer unless you are a person with a disability. The amount can be split between eligible spouses, common-law partners, or any other eligible person jointly acquiring the home.
GST/HST New Housing Rebate
The GST/HST New Housing Rebate provides a rebate on the federal portion of the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) paid when buying a new 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 and federal portion of taxes.
Frequently Asked Questions (FAQ) on First-Time Home Buyer Incentives in Saskatchewan
How much do first-time home buyers have to put down in Saskatchewan?
The amount you require for a down payment depends on the home’s purchase price. First-time buyers should prepare to put at minimum 5% down on homes with a purchase price of $500,000 or less. For homes with a purchase price between $500,000 and $1,499,999, 5% is required for the first $500,000 and 10% for the remainder. For homes with a purchase price of over $1.5 million, 20% or more will be required as a down payment.
Can any resident qualify as a first-time home buyer in Saskatchewan?
To qualify as a first-time home buyer in Saskatchewan for the provincial rebate, you would need to be a resident of the province who files income taxes and resides in the property as your primary residence. For the Métis Nation First Time Home Buyers’ Program, you must be a Métis citizen in Saskatchewan to qualify for assistance as a first-time buyer.
How much will I get back using the PST Rebate if I purchase a newly constructed home?
The PST rebate provides up to 42% of the PST paid when purchasing a newly constructed home. The maximum purchase price must be less than $550,000. However, the total purchase price must be less than $450,000 to get the full rebate instead of a reduced amount.
This means if you purchase a home for $400,000, the 42% rebate will apply, giving you a rebate of $10,080 ($24,000 x 42% = $10,080) off the $24,000 ($400,000 x 6% = $24,000) in PST paid.
Final Thoughts
Understanding what incentives are available to first-time home buyers in Saskatchewan can help ease the financial burden of purchasing your first home. Combining provincial programs you qualify for, like the First-Time Homebuyers’ Tax Credit, the PST Rebate for New Home Construction, or the Métis First-Time Home Buyers Program, can help reduce the upfront costs of homeownership. These programs can also be combined with the federal rebates available to maximize savings and make homeownership more affordable.
Are you a first-time home buyer in Saskatchewan? Contact nesto mortgage experts today for tailored advice and explore your mortgage options.
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