First-Time Buyer Incentives in BC — Overview
If you're buying your first home in British Columbia, there are several government programs designed to help you get into the market. Between federal and provincial incentives, first-time buyers can save tens of thousands of dollars on their purchase — but only if they know what's available and how to qualify.
As a realtor and mortgage broker in Surrey, I walk every first-time buyer through these programs before they start their home search. Understanding what you qualify for directly affects how much home you can afford and how much cash you'll need at closing.
Key Takeaway
Property Transfer Tax Exemption for First-Time Buyers
This is usually the largest single savings for first-time buyers in BC. The First Time Home Buyers' Property Transfer Tax (PTT) Exemption eliminates the property transfer tax entirely on qualifying purchases.
| Detail | Requirement |
|---|---|
| Full exemption | Properties valued at $835,000 or less |
| Partial exemption | $835,001 – $860,000 (gradually reduced) |
| No exemption | Above $860,000 |
| Max savings | Up to ~$14,000 |
| Property size | 0.5 hectares (1.24 acres) or less |
| Residency | Must live in the home within 92 days |
To qualify, you must be a Canadian citizen or permanent resident, have lived in BC for at least 12 consecutive months before the purchase (or filed 2 BC tax returns in the past 6 years), and never have owned a principal residence anywhere in the world.
Calculate Your Property Transfer Tax Savings
See exactly how much you'll save with the first-time buyer exemption.
For a full breakdown of how property transfer tax works, including the newly built home exemption, read my guide on BC Property Transfer Tax.
RRSP Home Buyers' Plan (HBP)
The Home Buyers' Plan lets you withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home — tax-free. If you're buying with a partner who also qualifies, you can each withdraw $60,000 for a combined $120,000.
- Withdrawal limit: $60,000 per person (increased from $35,000 in 2024)
- Tax-free: No tax withheld on the withdrawal — unlike a regular RRSP withdrawal
- Repayment: Must repay the full amount back into your RRSP within 15 years, starting 2 years after withdrawal
- Minimum repayment: At least 1/15 of the total withdrawal per year (e.g., $4,000/year on a $60,000 withdrawal)
- Qualifying home: Must be your principal residence in Canada
⚠️ Plan Ahead
First Home Savings Account (FHSA)
The First Home Savings Account (FHSA) is one of the newest and most powerful tools for first-time buyers in Canada. Launched in April 2023, it combines the best features of both the RRSP and TFSA.
| Feature | FHSA Details |
|---|---|
| Annual contribution limit | $8,000 per year |
| Lifetime contribution limit | $40,000 |
| Tax deduction | Yes — contributions are tax-deductible (like RRSP) |
| Tax-free growth | Yes — investment gains are tax-free (like TFSA) |
| Tax-free withdrawal | Yes — when used for a qualifying home purchase |
| Account lifespan | 15 years or until you turn 71 (whichever comes first) |
| Can combine with HBP | Yes — use both FHSA and RRSP HBP for the same purchase |
Key Takeaway
✅ Start Early
First-Time Home Buyers' Tax Credit (HBTC)
The federal Home Buyers' Tax Credit provides a non-refundable tax credit of up to $1,500 ($10,000 × 15%) on your income tax return for the year you purchase your first home.
- Available to first-time home buyers or those who haven't owned a home in the past 4 years
- Claim it on your federal income tax return for the year of purchase
- Both you and your spouse can claim the credit if you both qualify
- The home must be registered in your name (or your spouse's) and located in Canada
While $1,500 isn't huge compared to other incentives, it's easy to claim and often overlooked. Your accountant should include it automatically, but it's worth double-checking your return.
GST New Home Rebate
If you're buying a new construction home (not resale), you may qualify for the GST New Home Rebate, which refunds up to 36% of the GST paid — to a maximum of $6,300.
- Full rebate for new homes priced at $350,000 or less
- Partial rebate for homes between $350,000 and $450,000
- No rebate for homes above $450,000
- Most builders credit the rebate at closing — check your purchase agreement
For a detailed breakdown of when GST applies and how the rebate works, see my guide on GST on real estate purchases in BC.
Calculate Your GST Rebate
See if you qualify and how much you can save with the GST New Home Rebate.
How to Combine All Incentives — A Real Example
Let's say you're a first-time buyer purchasing a $780,000 resale townhome in Surrey. Here's how stacking incentives could work:
| Incentive | Savings / Benefit |
|---|---|
| PTT Exemption (full) | $13,600 saved |
| RRSP HBP (withdraw $60,000) | $60,000 toward down payment |
| FHSA (withdraw $40,000) | $40,000 toward down payment |
| HBTC Tax Credit | $1,500 tax refund |
| BC Homeowner Grant (Year 1) | $570 property tax reduction |
In this scenario, you could access up to $100,000 for your down payment through RRSP + FHSA, save $13,600 on closing by eliminating property transfer tax, receive a $1,500 tax credit, and reduce your first year's property taxes by $570.
💡 Don't Forget the BC Homeowner Grant