Short answer
Often no. When opening an FHSA, living in a qualifying home owned or jointly owned by your spouse or common-law partner during the current year or previous four calendar years can prevent first-time-buyer status.
The client’s real concern
A person has never been on title and assumes that alone makes them a first-time buyer, even though they live with a spouse in the spouse’s owned home.
What the official rule says
CRA’s opening test looks at homes the individual owned and also a qualifying home owned by a spouse or common-law partner in which the individual lived as a principal residence during the relevant period.
What this does not guarantee
“Not on title” is not the complete test. FHSA, HBP, insured-mortgage, land-transfer-tax refund and GST/HST rebate definitions can differ; qualifying under one program does not settle the others.
A practical Ontario example
Illustration only: Carlos has never owned real estate but lives in the house owned by his common-law partner. CRA’s own example says he is not a first-time buyer for opening an FHSA while those facts apply.
What I would check before relying on the money
Map ownership, relationship and principal-residence history by calendar year before opening or withdrawing. Ask a tax professional to confirm eligibility and have the broker test the mortgage without assuming an unavailable FHSA amount.
- Which program are you using: FHSA, HBP, both, or another source?
- Who owns the account and independently meets that program’s definition?
- When were funds contributed, and when must they be withdrawn?
- Will the full bank, RRSP or FHSA trail satisfy the lender and lawyer?
- What cash remains for the deposit, adjustments, tax, legal costs and emergencies?
Rajiv’s broker perspective
Tax eligibility and mortgage approval are two separate tests. CRA determines whether the withdrawal or credit qualifies under tax law. The lender, mortgage insurer where applicable, and lawyer separately examine ownership, source of funds, borrowed down payment, timing and affordability. I would build one funds-to-close schedule first, then compare suitable A-lender, alternative/B, MIC or private options only if the complete mortgage facts require them. A tax benefit should support the plan—not hide a cash shortfall.
Related: First-Time Buyer Rule Hub · Mortgage Knowledge Centre · Updates & Rules Centre
Will your down payment be ready when the offer becomes firm?
Send Rajiv the purchase timeline, account types, contribution dates, expected withdrawals and available closing cash. He can prepare a practical funds-to-close review and identify questions that need your accountant or lawyer before you commit.