Buying Your First Home in BC: Every Program That Can Help
Purchasing your first home in British Columbia is a significant milestone — and an expensive one. The good news? There are more programs than ever to help first-time buyers get into the market. Here's a comprehensive guide to every program available in 2026.
1. First Home Savings Account (FHSA)
The FHSA is one of the most powerful tools for first-time buyers in Canada.
How it works: - Contribute up to $8,000 per year (lifetime max of $40,000) - Contributions are tax-deductible (like an RRSP) - Withdrawals for a home purchase are tax-free (like a TFSA) - You get the best of both worlds: tax deduction going in, no tax coming out
Eligibility: - Must be a Canadian resident, age 18-71 - Must be a first-time home buyer (haven't owned a home in the year the account is opened or the previous 4 years) - Account must be open for at least one year before withdrawal
My tip: Even if you're not planning to buy immediately, open an FHSA now. The one-year minimum holding period means earlier is better. Plus, unused contribution room carries forward (up to $8,000).
2. BC Property Transfer Tax (PTT) First-Time Buyer Exemption
When you buy a property in BC, you normally pay Property Transfer Tax. First-time buyers can get a full or partial exemption.
Full exemption: Properties valued up to $835,000 (as of 2024 — check current thresholds) Partial exemption: Properties valued between $835,000 and $860,000 Newly built homes: Full exemption up to $1,100,000; partial up to $1,150,000
Savings: On a $835,000 home, the PTT would normally be $14,700. With the first-time buyer exemption, you pay $0.
Eligibility: - Canadian citizen or permanent resident - Lived in BC for at least one year, OR filed two BC tax returns in the last six years - Never owned property anywhere in the world - Must live in the home as your principal residence
3. RRSP Home Buyers' Plan (HBP)
Withdraw up to $60,000 from your RRSPs tax-free to buy your first home (increased from $35,000 in the 2024 Federal Budget).
Key details: - Can be combined with your partner's withdrawal for up to $120,000 per couple - Must repay over 15 years (starting the second year after withdrawal) - Can be used alongside the FHSA
My tip: You can contribute to your RRSP and claim the deduction, then withdraw under the HBP 90+ days later. This gives you the tax deduction benefit even if you're buying soon.
4. First-Time Home Buyer Tax Credit (Federal)
A non-refundable tax credit of up to $10,000, providing up to $1,500 in tax relief.
It's modest compared to the other programs, but it's automatic — you just claim it on your tax return after purchasing.
5. GST/HST New Housing Rebate
If you're buying a newly built home, you may be eligible for a GST rebate of up to $6,300 on the federal portion. In BC, there's an additional provincial rebate.
Eligibility: - Must be a new or substantially renovated home - Purchase price thresholds apply (check current limits) - Must be your primary residence
6. BC Home Owner Grant
While not specific to first-time buyers, the BC Home Owner Grant reduces your annual property taxes by up to $570 (or $770 in northern/rural areas).
Eligibility: - Property must be your principal residence - Assessed value thresholds apply - Applied annually through your municipality
Stacking These Programs: A Real Example
Let's say you're a first-time buyer purchasing a $800,000 condo in Vancouver:
| Program | Benefit |
|---|---|
| FHSA (maxed at $40K) | $40,000 tax-free savings + ~$12,000 in tax deductions |
| RRSP HBP | Additional $60,000 from RRSPs, tax-free |
| PTT Exemption | Save $14,000 in Property Transfer Tax |
| Federal Tax Credit | $1,500 tax credit |
| Total Benefits | $67,500+ in savings and tax benefits |
The Order of Operations
1. Today: Open an FHSA and start contributing 2. 1+ years before buying: Max RRSP contributions you'll withdraw via HBP 3. Pre-approval: Get mortgage pre-approval to know your budget 4. When you find the right home: Use FHSA + HBP for down payment 5. At closing: Apply PTT exemption 6. Tax time: Claim federal FTHB credit
Vancouver-Specific Considerations
The reality is that Vancouver's prices mean not all these programs apply equally:
- •The PTT first-time buyer exemption has a price ceiling — in Vancouver's market, many homes exceed it. Condos and townhomes are more likely to qualify.
- •A minimum 5% down payment is required for homes up to $500K; 10% on the portion above $500K. For an $800K condo, that's $55,000 minimum.
- •Mortgage stress test: You must qualify at the higher of your contract rate + 2% or 5.25%.
How I Can Help
Navigating these programs while house-hunting in Vancouver is complex. As your realtor, I'll:
- •Help you understand which programs you qualify for
- •Connect you with mortgage brokers who specialize in first-time buyers
- •Find properties that maximize your program eligibility
- •Guide you through the entire process from pre-approval to keys in hand
Ready to start your home-buying journey? Let's talk about your situation and create a personalized plan.
Have Questions?
I'm happy to discuss any of the topics covered in this article. Reach out for a no-obligation conversation.
