Federal programs, mortgage-insurance rules and provincial tax rebates use different definitions, meaning previous ownership does not always disqualify a buyer.

Someone buying their second home can sometimes qualify as a first-time homebuyer. Someone who has never purchased a home can sometimes fail to qualify.

That’s why experienced mortgage brokers regularly hear questions such as:

“I co-signed my parents’ mortgage. Am I still a first-time homebuyer?”
“I inherited part of my mother’s cottage. Does that disqualify me?”
“I owned a rental property, but I never lived in it.”
“I sold my home 15 years ago and have been renting ever since.”
“I’m divorced and buying on my own again.”
If one of those questions sounds familiar, you’re certainly not alone. The frustrating answer is: it depends.

Each question can have a different answer depending on which first-time homebuyer program is involved. That is not because the rules are necessarily unclear, but because Canada does not have a single definition of a first-time homebuyer.

The Canada Revenue Agency applies one set of rules to federal tax programs. Federal mortgage-insurance rules use another definition for first-time buyers seeking a 30-year amortization. Provincial governments often apply entirely different rules to land transfer tax rebates and other incentives.

As a result, the same buyer can qualify as a first-time homebuyer under one program while being ineligible under another.

The real question is not simply, “Have you owned a home?” It is, “Which definition applies?”

Federal programs often give buyers a second chance
For most federal first-time homebuyer programs, eligibility is based on whether the buyer occupied a home they owned during a specified period covering the current year and the four preceding calendar years.

If you have not lived in a home owned by you—or, in some cases, your spouse or common-law partner—during the applicable period, you may once again qualify as a first-time homebuyer.

This can reopen eligibility for programs such as the First Home Savings Account, the RRSP Home Buyers’ Plan and the Home Buyers’ Amount tax credit.

Many Canadians assume owning a home once means losing access forever. In many cases, they are mistaken.

I have met prospective buyers who delayed opening a First Home Savings Account because they believed they no longer qualified. If you satisfy the federal definition, opening one sooner allows you to begin accumulating contribution room.

Mortgage-insurance rules ask a different question
For the purpose of qualifying for a 30-year insured mortgage as a first-time homebuyer, a borrower may be eligible if they have never purchased a home, have not occupied a home owned by them or their current spouse or common-law partner during the previous four years, or recently experienced the breakdown of a marriage or common-law relationship.

Many people are surprised by the last provision. Someone who recently separated from a spouse may qualify under these mortgage-insurance rules while failing to qualify for another program.

Same buyer. Different rule. Different outcome.

Then there are the real-life questions
Those opening questions represent some of the most common situations mortgage professionals encounter. They also illustrate why there is no universal answer.

“I co-signed my parents’ mortgage.”

Many young adults helped their parents qualify for a mortgage years ago and now wonder whether they accidentally gave up their own first-time homebuyer status.

The answer depends on more than whether their name appeared on the mortgage.

Were they also registered on title? Did they acquire an ownership interest? Did they ever live in the property?

Different programs ask different questions. Simply guaranteeing or co-signing a mortgage is not necessarily the same as owning the property.

Relying on a quick Google search can therefore be risky. Two people can ask what appears to be the same question and receive different answers because one small detail, such as being on title rather than simply guaranteeing the mortgage, changes the outcome.

“I owned a rental property.”

Owning an investment property creates similar confusion.

Some programs focus primarily on whether the buyer occupied a home they owned. Others focus on whether the buyer has ever held an ownership interest.

Someone who owned a rental property but never lived in it may therefore qualify under certain federal definitions while being ineligible for a provincial rebate.

“I inherited part of a family property.”

Even inheriting a one-third interest in a family cottage can affect one program differently than another.

These are exactly the situations in which buyers get into trouble by assuming every program follows the same definition.

“The biggest mistake isn’t misunderstanding one rule. It’s assuming there is only one.”

Provinces make things even more complicated
Federal rules are only part of the story.

Some provinces do not levy a conventional provincial land transfer tax, while others offer rebates or exemptions under their own rules.

Ontario provides perhaps the clearest example. Its Land Transfer Tax Refund for First-Time Homebuyers uses a lifetime ownership test. There is no reset period.

Previous ownership of a home, or even an interest in a home, anywhere in the world generally means a buyer no longer qualifies for the refund. A spouse’s ownership history can also affect eligibility.

This is very different from the occupancy-based tests used by many federal programs.

Meanwhile, Alberta and Saskatchewan do not levy conventional provincial land transfer taxes, although buyers pay land-registration fees. British Columbia operates its own First Time Home Buyers’ Program, with its own eligibility requirements.

The lesson is simple: never assume your province uses the same definition as the federal government. Quite often, it does not.

“Many Canadians believe buying one home permanently ends every first-time homebuyer benefit. In many cases, it doesn’t.”

Why this matters
Consider someone who bought a home in 2012, sold it in 2015 and has rented ever since. They are now preparing to buy another home.

Federally, they may once again qualify for a First Home Savings Account, the Home Buyers’ Plan and the Home Buyers’ Amount.

If they need an insured mortgage, they may also qualify for a 30-year amortization under the first-time homebuyer definition.

Yet in Ontario, they generally will not qualify for the provincial Land Transfer Tax Refund because Ontario applies a lifetime ownership test.

One buyer. Several programs. Potentially different answers. It is no wonder buyers become confused.

The bottom line
If you have owned a home before, do not automatically assume you have lost every first-time homebuyer benefit forever.

Likewise, do not assume you are entitled to every incentive simply because you have been renting for several years.

Canada has several definitions of a first-time homebuyer. Federal tax programs, mortgage-insurance rules and provincial governments apply different tests for different purposes.

Before assuming you qualify—or do not qualify—ask one question: Which definition of a first-time homebuyer applies to me?

The answer may be worth thousands of dollars.

Written by

Ross Taylor
Mortgage Strategies
August 5, 2026

BMO believes the Bank is “firmly on hold” and said any rate increase would now have to be considered “very, very carefully.” If Canada-U.S. trade relations worsen, however, senior economist Robert Kavcic said the resulting economic risks could “open the door to easing again.”

The assessment follows the U.S. announcement of a 50% tariff on a targeted range of Canadian goods beginning Aug. 19.

The measures would affect roughly $28 billion (US$20 billion) worth of Canadian exports to the U.S., including alcoholic beverages, cement, dairy products, wood and paper products, chemicals, plastics, electronics and some industrial equipment.

Energy, potash, critical minerals, fish and goods already subject to tariffs under Section 232 will be exempt, according to BMO.

The duties are being imposed under Section 338 of the U.S. Tariff Act of 1930, which allows the president to levy tariffs of up to 50% against countries deemed to discriminate against American commerce.

The White House said the move responds to Canadian measures affecting U.S. automobiles, dairy products and alcohol, including provincial restrictions on American liquor sales and Canada’s dairy supply-management system.

Prime Minister Mark Carney said the tariffs violate the Canada-U.S.-Mexico Agreement and would raise costs for American consumers, while indicating that Canada remains prepared to negotiate a resolution, Reuters reported.

While the 30-day delay leaves time for negotiations, the decision marks a significant escalation because the duties would apply even to CUSMA-compliant goods, which have so far remained tariff-free unless covered by separate sector-specific measures.

CIBC analysts described the announcement as the “starting point” for potentially difficult negotiations over the continental trade agreement, according to Bloomberg.

“We believe the selection of goods is largely political,” analysts led by Christopher Harvey, CIBC’s head of equity and portfolio strategy, said in a note.

Tariffs could weigh on Canadian growth
The affected products represent about 5% of Canadian goods exports to the U.S. and roughly 0.8% of Canadian GDP, according to BMO.

TD Economics estimates that the tariffs could subtract between 0.3 and 0.6 percentage points from Canadian GDP growth over the next year if they remain in place, although it expects the impact to be closer to the lower end of that range.

TD economist Andrew Hencic said the targeted products appear to have been selected partly because U.S. demand is likely to respond quickly to the higher duties. He pointed to Canadian iron and steel exports, which are down roughly 50% from pre-tariff levels as U.S. demand has declined.

Businesses are also likely to accelerate shipments ahead of the Aug. 19 deadline, adding volatility to upcoming trade data. TD said the data would likely not reflect the full effect of the tariffs until September, with the broader economic impact beginning to emerge late this year.

Financial markets initially showed little reaction. TD said the Canadian dollar was down about 0.2%, while expectations for the Bank of Canada’s rate path were largely unchanged.

The latest tariff announcement follows a cooler Canadian inflation report and the Bank of Canada’s decision last week to leave its policy rate unchanged at 2.25% for a sixth consecutive meeting.

Written by

Steve Huebl
Economic news
July 21, 2026

Canada’s inflation rate slowed by more than expected last month as gasoline prices eased and a key measure of core inflation dropped below 2% for the first time in nearly six years.

(Bloomberg) — Canada’s inflation rate slowed by more than expected last month as gasoline prices eased and a key measure of core inflation dropped below 2% for the first time in nearly six years.

The consumer price index rose by 2.8% in June, Statistics Canada reported on Monday. That’s down from 3.2% in May — which was the highest level in more than two years — and lower than the 2.9% rate expected in a Bloomberg survey of economists.

The average of the Bank of Canada’s preferred median and trim measures of core inflation was 1.85%, marking the lowest rate since September 2020 and the first time the metric has fallen below 2% in nearly six years.

The softer-than-expected inflation report adds more evidence that inflationary effects of the Iran war aren’t yet spreading beyond energy. The Bank of Canada has warned it may have to raise interest rates if higher energy costs feed into other prices, but cooler core inflation suggests economic slack is offsetting price pressures from the war.

“This report confirms the recent view from the bank that higher energy costs are not leading to broad inflationary pressures,” said Charles St-Arnaud, chief economist at Servus Credit Union.

“However, with gasoline prices remaining elevated and oil prices increasing in recent weeks — leading to continued elevated freight costs — it is probably still too early for the bank to lower its guard.”

The loonie fell to the day’s low versus the U.S. dollar after the release of the report, down 0.2% to C$1.4046 as of 9:00 a.m. in Ottawa. Short-term Canadian debt rallied, with the two-year yield down about four basis points to 2.83%.

“The wait-and-see approach for the Bank of Canada appears to be the right choice and suggests the same for the Fed and Bank of England,” said Win Thin, chief economist at Bank of Nassau 1982.

Gasoline prices were still up 20.5% in June from a year ago, but that’s down from a 33.2% increase in May.

On a monthly basis, gasoline prices fell by 10.2% as diplomatic efforts to end the war between the US and Iran started to bring down global oil prices. The two sides had reached a ceasefire in mid-June, but that’s since collapsed, adding to uncertainty about energy prices.

The monthly decline in gasoline prices was the largest since April 2025, when the consumer carbon levy was scrapped.

The consumer price index also fell by 0.4% month-over-month, marking the largest decrease since December 2024.

Grocery prices last month increased annually by 3.9%, down from 4.3% in May. The slowdown is attributed to slower price growth for fruit due to lower prices for grapes. Shelter price inflation declined to 1.5% in June, and has remained below 2% since February.

Meanwhile, traveller accommodation increased by 10.1% on a yearly basis, up from 2.5% in May, as the FIFA World Cup kicked off. Travel tours were also up 6.8% annually in June, rising sharply from 0.7% in May.

The Bank of Canada held its policy rate at 2.25% for a sixth consecutive meeting last week, with its projections suggesting the economy will rebound and inflation pressures will fade. But it also warned that uncertainty remains high, and said policymakers are “prepared to adjust monetary policy as needed.”

The central bank’s monetary policy report projects inflation will average 2.5% in 2026, and will return to its 2% target by early next year.

“It’s clear that the output gap is weighing heavily on underlying inflation,” Benjamin Reitzes, a rate strategist with the Bank of Montreal wrote in a report to investors. “This will keep the bank comfortably on the sidelines.”

Written by

Bloomberg
Economic news
July 20, 2026

–With assistance from Mario Baker Ramirez.

©2026 Bloomberg L.P.

The Bank of Canada held interest rates steady for a sixth consecutive meeting as policymakers see the economy rebounding and oil price-driven inflation fading.

(Bloomberg) — The Bank of Canada held interest rates steady for a sixth consecutive meeting as policymakers see the economy rebounding and oil price-driven inflation fading.

Officials led by Governor Tiff Macklem kept the policy rate at 2.25% on Wednesday, matching expectations of economists in a Bloomberg survey and traders in overnight swap markets.

“After a year of weakness, Canada’s economy is showing signs of improvement,” the bank said in its monetary policy report. “Growth is expected to pick up, and inflation eases gradually from its recent peak. Uncertainty is still high.”

The bank said in its rate statement that current borrowing cost levels remain appropriate to sustain the economic recovery and bring inflation back to the 2% target. “Governing Council will continue to assess the strength of the Canadian economy and the outlook for inflation, and is prepared to adjust monetary policy as needed,” it said.

In the past two rate decisions, Macklem had warned that “consecutive” rate hikes might be needed if the Middle East conflict continues and higher energy prices feed into broader inflation. He dropped this language in Wednesday’s opening remarks, along with a warning that there may be a need to cut if the U.S. imposes major new trade restrictions.

The loonie traded steadily against the U.S. dollar after the decision, little changed on the day around the C$1.4057 mark as of 10:23 a.m. in Ottawa. Canadian bonds extended small gains across the curve, with the two-year yield down about four basis points to 2.83%. Swaps traders continue to price some 20 basis points of tightening from the bank by December.

In the monetary policy report, the bank said it sees growth rising by 2.5% annualized in the second quarter and 1.5% in the third. And while weakness at the start of the year prompted officials to slash their 2026 growth forecast to 0.7%, policymakers boosted their forecasts for 2027 and 2028 to 1.8% each.

Headline inflation is seen averaging 2.5% in 2026, from 2.3% previously, and is forecast to return to the bank’s 2% target by early next year. Policymakers listed “higher oil prices, elevated gasoline refinery margins and a weaker Canadian dollar” as reasons for near-term strength in price pressures.

The bank’s forecasts show core inflation remaining subdued too, and officials pointed to a narrowing breadth of underlying price pressures as evidence that higher oil costs aren’t spilling over into the prices of other goods and services.

Inflation risks
The bank said a main upside risk to inflation is potential price pressures from businesses passing on higher input costs to consumers.

It also raised concerns about the possibility that its estimates of productivity could be “weaker than assumed,” which would imply a smaller output gap and more inflationary pressure.

The bank listed a potential tightening of global financial conditions and weaker-than-expected recovery in domestic economic growth as downside risks to the inflation outlook.

They assume Brent to fall to $70 a barrel by the end of 2027, based on the July 9 futures curve and slightly lower than their April forecast. Policymakers also boosted their outlook for exports, in part due to higher “energy-related activity.”

The bank didn’t provide its interest rate decision on an embargoed basis to media outlets because of a planned protest in support of striking security guards.

–With assistance from Mario Baker Ramirez and Nojoud Al Mallees.

©2026 Bloomberg L.P. / Mortgage proffessionals Canada