First-Time Home Buyer Programs in BC: What You Can Claim

First-time buyers in BC can combine five main programs: the First Home Savings Account (up to $40,000 of tax-deductible savings), the RRSP Home Buyers' Plan (up to $60,000), BC's property transfer tax exemption (up to $8,000), the federal first-time home buyers' GST rebate on new homes (up to $50,000) and the Home Buyers' Amount tax credit (up to $1,500). Each has its own definition of "first-time buyer", so check the conditions below before you count on any of them.

The programs at a glance

Program	Run by	What you get	Key condition
First Home Savings Account (FHSA)	Federal (CRA)	Contribute up to $8,000 a year, $40,000 lifetime. Contributions are deductible and qualifying withdrawals are tax-free.	18 or older, 71 or younger, and a first-time buyer when you open it
RRSP Home Buyers' Plan (HBP)	Federal (CRA)	Withdraw up to $60,000 from your RRSPs without tax, repaid over 15 years	First-time buyer, buying a qualifying home to live in
First time home buyers' PTT exemption	Province of BC	No property transfer tax on the first $500,000, up to $8,000 saved	Fair market value under $860,000, never owned a principal residence anywhere
First-time home buyers' GST/HST rebate	Federal (CRA)	Up to 100% of the GST on a new home, maximum $50,000	Newly built or substantially renovated home, phased out between $1,000,000 and $1,500,000
Home Buyers' Amount	Federal (CRA)	Claim $10,000 on your tax return for a credit of up to $1,500	Qualifying home bought in the tax year

Who counts as a first-time buyer

This is where most people get caught. The federal programs use a four-year test: you generally qualify if you did not live in a home that you or your spouse or common-law partner owned in the current calendar year or the four years before it. Someone who sold a condo five or more years ago and has rented since can be a first-time buyer for the FHSA, the HBP, the GST rebate and the Home Buyers' Amount.

BC's property transfer tax exemption is stricter. You must never have owned a registered interest in a property that was your principal residence, anywhere in the world, at any time. The same person who sold that condo years ago would not qualify for the PTT exemption, even though they qualify federally.

First Home Savings Account (FHSA)

The FHSA works like a blend of an RRSP and a TFSA. Contributions reduce your taxable income the way RRSP contributions do, and a qualifying withdrawal to buy your first home is not taxed, the way a TFSA withdrawal is not taxed.

You get $8,000 of participation room in the year you open the account and $8,000 more each year after, up to $40,000 over your lifetime.
Unused room carries forward, up to a maximum of $8,000 into the next year. Opening an account early starts the clock on room even if you cannot contribute yet.
The account can stay open for up to 15 years, or until the end of the year you turn 71, whichever comes first.

For a couple, two FHSAs mean up to $80,000 of tax-deductible savings toward a down payment.

RRSP Home Buyers' Plan (HBP)

The HBP lets you take up to $60,000 out of your RRSPs to buy or build a qualifying home, without the withdrawal being taxed. A couple who both qualify can withdraw up to $120,000 between them. The money is a loan to yourself, repaid to your RRSP over 15 years.

The CRA has extended temporary repayment relief: for a first withdrawal made between January 1, 2026 and December 31, 2028, repayments start in the fifth year after the withdrawal instead of the second. A first withdrawal in 2026, for example, has its first repayment year in 2031. You can use the HBP and the FHSA for the same purchase.

BC property transfer tax exemption

Property transfer tax is paid when your home is registered in your name, and on an $800,000 home it comes to $14,000. A qualifying first-time buyer is exempt from the tax on the first $500,000 of the price, a saving of up to $8,000. The full exemption applies up to a fair market value of $835,000, phases out between $835,000 and $860,000, and ends at $860,000.

You also need to be a Canadian citizen or permanent resident, have lived in BC for the year before registration (or filed two BC tax returns in the last six years), and the home must be your principal residence on no more than 0.5 hectares. Our property transfer tax guide walks through the rules and examples, and the PTT calculator shows your number in seconds.

If you are buying a newly built home, compare this with BC's newly built home exemption, which can remove all of the tax on a new home up to $1,100,000 for buyers who will live in it, first-time or not. You can claim one exemption per purchase, not both.

First-time home buyers' GST/HST rebate on new homes

On a newly built or substantially renovated home, GST is charged on the price. The federal first-time home buyers' rebate refunds up to 100% of that GST, to a maximum of $50,000, on homes valued at $1,000,000 or less. Between $1,000,000 and $1,500,000 the rebate is reduced gradually, so a $1,250,000 home gets $25,000, and at $1,500,000 or more there is no rebate.

For a home bought from a builder, the agreement of purchase and sale must be signed on or after May 27, 2025 and before 2031, construction must begin before 2031, and the home must be substantially completed before 2036. The home has to be your primary place of residence. This rebate matters most to buyers of presale townhomes and condos, where the GST on the price can be a large number.

Home Buyers' Amount tax credit

In the year you buy a qualifying home, you can claim $10,000 on line 31270 of your tax return. The non-refundable credit is worth up to $1,500. Couples can split the claim, but the total between you cannot be more than $10,000.

Minimum down payment rules

Programs help with savings and costs, but the down payment rules still apply. The federal minimums are:

Price up to $500,000: 5% of the purchase price.
Price from $500,000 up to $1,500,000: 5% of the first $500,000 plus 10% of the portion above $500,000.
Price of $1,500,000 or more: 20% of the purchase price.

With less than 20% down you will typically need mortgage loan insurance, and the insurance premium is usually added to the mortgage. On a $700,000 townhome, the minimum is $25,000 on the first $500,000 plus $20,000 on the remaining $200,000, so $45,000 in total, before closing costs.

Putting it together: an illustrative example

This example is illustrative only. A couple, both first-time buyers under every program, have each saved $40,000 in an FHSA and buy a resale townhouse in Surrey for $800,000. Their minimum down payment is $55,000, which their $80,000 of FHSA savings covers with room left over for closing costs. Their property transfer tax is $14,000 before the exemption and $6,000 after it. When they file their taxes, the Home Buyers' Amount gives them up to $1,500 back. If they had bought a qualifying new home instead, the GST rebate and the newly built PTT exemption could be worth far more, which is why it pays to compare resale and new before you choose.

How our team helps first-time buyers

Programs are only useful if the home is right. We help first-time buyers compare Surrey townhomes, condos and starter homes across South Surrey, Langley and the Fraser Valley, line up the right lender and lawyer, and check that every program you plan to use applies to the property before you write an offer.

Frequently asked questions

What incentives are there for first-time home buyers in BC?

The main ones are the First Home Savings Account, the RRSP Home Buyers' Plan, BC's first time home buyers' property transfer tax exemption, the federal first-time home buyers' GST/HST rebate on new homes and the Home Buyers' Amount tax credit. Many buyers can use several of them on one purchase.

Who is a first-time home buyer in Canada?

For the federal programs, you generally qualify if you did not live in a home owned by you or your spouse or common-law partner in the current year or the four years before it. BC's property transfer tax exemption is stricter: you must never have owned a principal residence anywhere in the world.

Can I use the FHSA and the Home Buyers' Plan together?

Yes. You can withdraw from your FHSA and use the Home Buyers' Plan for the same qualifying home, as long as you meet the conditions of each program.

How much can I take out of my RRSP for my first home?

Up to $60,000 under the Home Buyers' Plan. For a first withdrawal between January 1, 2026 and December 31, 2028, repayments start in the fifth year after the withdrawal and are spread over 15 years.

Do I get the GST rebate on a resale home?

No. The first-time home buyers' GST/HST rebate applies to newly built or substantially renovated homes. Resale homes generally do not have GST on the price.

What is the minimum down payment in Canada?

5% on the first $500,000, 10% on the portion from $500,000 up to $1,500,000, and 20% for homes priced at $1,500,000 or more. With less than 20% down you will typically need mortgage loan insurance.

Sources

Rates, thresholds and program rules in this article were checked against these official pages on October 9, 2026. Rules change, so confirm current details before you act.