Doma Institute

First Time Home Buyer Incentives in BC Explained (2025 Guide)

Buying your first home in British Columbia can feel like an uphill battle — especially in expensive markets like Vancouver, Burnaby, or North Vancouver. But if you’re a first-time buyer, you may be eligible for several provincial and federal incentives designed to reduce upfront costs and make homeownership more accessible. Whether you’re exploring presale condos in Surrey or townhomes in Port Coquitlam, understanding what programs are available can help you plan more confidently and buy more strategically.

This blog breaks down the most relevant and up-to-date first time home buyer incentives in BC, who qualifies for them, and how to take advantage of each one.

1. BC First-Time Home Buyers’ Program (Property Transfer Tax Exemption)

The Property Transfer Tax (PTT) is a provincial tax levied on real estate transactions in BC. However, first-time home buyers may qualify for exemptions that can lead to substantial savings.

Eligibility Criteria:

  • Citizenship/Residency: Must be a Canadian citizen or permanent resident.
  • First-Time Buyer: Have never owned a principal residence anywhere in the world.
  • Property Requirements:
    • Fair market value of $835,000 or less.
    • Land size of 0.5 hectares (1.24 acres) or smaller.
    • Used as your principal residence.
  • Exemption Details:
    • Full exemption on the first $500,000 of the property’s fair market value.
    • Partial exemption for properties valued between $500.000 and 835,000.

Note: These thresholds are effective for purchases completed on or after April 1, 2024.

For more information, visit the BC Government’s official page.

2. First Home Savings Account (FHSA)

Introduced in 2023, the FHSA is a registered savings plan that allows first-time home buyers to save for their first home tax-free.

Key Features:

  • Contributions: Up to $8,000 per year, with a lifetime maximum of $40,000.
  • Tax Benefits:
    • Contributions are tax-deductible, reducing your taxable income.
    • Withdrawals (including investment income) are tax-free when used to purchase a qualifying first home.
  • Eligibility:
    • Must be a Canadian resident aged 18 or older.
    • Must be a first-time home buyer (not owned a home in the current or previous four calendar years).

For detailed information, refer to the Canada Revenue Agency’s FHSA guide.

3. Home Buyers’ Plan (HBP)

The HBP allows first-time home buyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to purchase or build a qualifying home.

Program Details:

  • Withdrawal Limit: Up to $60,000 (increased from $35,000 as of April 16, 2024).
  • Repayment: Must repay the withdrawn amount to your RRSP over a 15-year period, starting the second year after the withdrawal.
  • Eligibility:
    • Must be a first-time home buyer.
    • The home must be your principal residence.

For more information, visit the Canada Revenue Agency’s HBP page.

4. GST/HST New Housing Rebate

If you’re purchasing a new or substantially renovated home, you may be eligible for a rebate on the Goods and Services Tax (GST) or the federal portion of the Harmonized Sales Tax (HST).

Rebate Details:

  • Rebate Amount: Up to 36% of the GST paid, to a maximum of $6,300.
  • Eligibility:
    • The home must be your primary place of residence.
    • Applies to new or substantially renovated homes with a fair market value of $350,000 or less for a full rebate.
    • Partial rebates are available for homes priced between $350,000 and $450,000.

For comprehensive information, consult the Canada Revenue Agency’s guide.

5. First-Time Home Buyers’ Tax Credit

The First-Time Home Buyers’ Tax Credit is a federal non-refundable tax credit designed to assist first-time home buyers with the costs associated with purchasing a home.

Credit Details:

  • Amount: A $10,000 non-refundable tax credit, providing up to $1,500 in federal tax relief.
  • Eligibility:
    • You or your spouse/common-law partner acquired a qualifying home.
    • Neither you nor your spouse/common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

For more details, visit the Canada Revenue Agency’s page.

6. 30-Year Amortization for Insured Mortgages

To improve housing affordability, the federal government has extended the maximum amortization period for insured mortgages.

Key Points:

  • Effective Date: August 1, 2024.
  • Eligibility:
    • First-time home buyers purchasing newly built homes.
  • Benefit: Allows for a 30-year amortization period, reducing monthly mortgage payments and improving affordability.

For official information, refer to the Department of Finance Canada’s announcement.

7. Newly Built Homes Property Transfer Tax Exemption

In addition to the First-Time Home Buyers’ Program, BC offers a Property Transfer Tax exemption for purchasers of newly built homes.

Eligibility Criteria:

  • Property Requirements:
    • The home must be newly built, such as a presale.
    • Fair market value of $750,000 or less.
    • Land size of 0.5 hectares (1.24 acres) or smaller.
    • Used as your principal residence.
  • Exemption Details:
    • Full exemption on the entire property transfer tax for qualifying homes.
    • Partial exemption available for homes valued between $750,000 and $800,000.

For more information, visit the BC Government’s official page.