Are RTM Homes Eligible for First-Time Home Buyer Incentives in Canada?

For many Canadians, purchasing a home is one of life’s biggest milestones, and government incentives can make that first home more affordable. If you’re considering a Ready-to-Move (RTM) home, you might be wondering whether these programs apply to your situation. The short answer is yes, in most cases RTM homes can qualify for first-time home buyer incentives, as long as specific conditions are met.

Here’s what you need to know.

Understanding RTM Homes

A Ready-to-Move home is a fully constructed house built at a central site (such as our outdoor lot), then transported in one piece to your prepared foundation.

Destiny Homes RTMs are built to the same standards and building codes as site-built homes, using traditional materials and methods. Once placed on your property, an RTM home becomes a permanent, fully compliant residence.

Federal Incentives Available for RTM Home Buyers

1. First-Time Home Buyer Incentive (FTHBI)

This federal program offers eligible first-time buyers a shared-equity loan from the Government of Canada (5% or 10% of the home’s purchase price) to help reduce monthly mortgage payments.

RTM Eligibility:

• The home must be a new construction or newly built property.
• The buyer must occupy it as a principal residence.
• Since RTM homes are new builds placed on owned land, they can qualify if your lender and builder meet CMHC (Canada Mortgage and Housing Corporation) standards.

Important: You’ll need to secure a mortgage from a participating lender, and both the lender and CMHC must recognize the RTM as a qualifying property. Most major lenders do, but always confirm in advance.

2. Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 (as of 2024) from their RRSPs tax-free to put toward a down payment.

RTM Eligibility:

Because RTMs are considered “qualified homes” under the Income Tax Act once installed on your land, this program applies the same way it does to a conventional house purchase. The key is that the home must be ready for occupancy within one year of the RRSP withdrawal.

3. GST/HST New Housing Rebate

When you purchase a new home or build one yourself, you may qualify for a rebate on a portion of the GST or HST paid.

RTM Eligibility:

RTM homes usually qualify as new housing, either purchased from a builder or self-built. The rebate applies if:

• The home is intended as your primary residence, and
• The total value falls under the program’s thresholds (generally under $450,000 for full federal rebate, with partial rebates available above that).

In Alberta, where only the 5% federal GST applies (no provincial sales tax), the GST New Housing Rebate can still save buyers thousands.

Key Things to Keep in Mind

• Lender Requirements: Work with a lender experienced in RTM financing. They’ll confirm which government programs they can pair with your mortgage.
• Land Ownership: You must own the land where the RTM will be placed to qualify for most first-time buyer incentives.
• Permanent Foundation: The home must be placed on a permanent foundation and connected to utilities; temporary or seasonal setups typically do not qualify.
• Occupancy Timeline: Programs like the HBP require that you occupy the home within a set timeframe (usually one year).

The Bottom Line

RTM homes can qualify for most federal first-time home buyer programs in Canada, provided they’re built to code, permanently installed, and used as your primary residence. Because financing and eligibility can vary slightly between lenders, it’s always best to confirm details early in the planning process.

A custom RTM home gives you the benefits of new construction, with the financial flexibility to take advantage of government incentives designed to help first-time buyers achieve home ownership.