Posted on
March 31, 2025
by
Nathan Selvarja
Embarking on the journey to homeownership in British Columbia is both exciting and rewarding. To support first-time buyers, various programs are available to make this process more affordable and accessible. Here’s a friendly guide to some key programs you might consider:
1. First Time Home Buyers’ Program
This program offers a reduction or elimination of the property transfer tax for eligible first-time homebuyers. To qualify:
• Property Value:
• Full exemption for homes valued at $500,000 or less.
• Partial exemptions available for homes valued between $500,000 and $525,000.
• Additional Criteria:
• Be a Canadian citizen or permanent resident.
• Have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years.
• Have never owned an interest in a principal residence anywhere in the world at any time.
• Have never received a first-time homebuyers’ exemption or refund.
For detailed information, visit the Government of British Columbia’s page on the First Time Home Buyers’ Program.
2. Home Buyers’ Plan (HBP)
The HBP allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to purchase or build a qualifying home. If purchasing with a partner who is also a first-time buyer, you can withdraw a combined total of $70,000. The withdrawn amount must be repaid into your RRSP within 15 years to avoid tax penalties.
Learn more about the HBP on the Government of Canada’s website.
3. First-Time Home Buyers’ Tax Credit (HBTC)
This federal non-refundable tax credit allows first-time homebuyers to claim up to $10,000, providing a tax rebate of $1,500. This credit helps offset costs associated with purchasing a home, such as legal fees and inspections.
Details about the HBTC can be found on the Government of Canada’s website.
4. First Home Savings Account (FHSA)
Introduced in 2023, the FHSA is a registered plan that allows first-time homebuyers to save for a down payment tax-free. You can contribute up to $8,000 annually, with a lifetime limit of $40,000. Contributions are tax-deductible, and withdrawals used for purchasing a first home are tax-free.
For more information, visit the Government of Canada’s page on the FHSA.
5. GST/HST New Housing Rebate
If you’re purchasing a new or substantially renovated home, you may be eligible for a rebate on the federal portion of the GST/HST paid. The rebate amount varies based on the home’s purchase price and other criteria.
More details are available on the Government of Canada’s website.
Additional Tips:
• Stay Updated: Program details and availability can change. Always verify the current status and eligibility criteria before applying.
• Consult Professionals: Engage with real estate agents, mortgage brokers, or financial advisors familiar with B.C.’s housing market to guide you through the process.
• Plan Ahead: Some programs have specific timelines or deadlines. Ensure you apply within the required periods to benefit fully.
Embarking on your first home purchase in British Columbia is a significant step. By leveraging these programs and staying informed, you can make the journey more affordable and enjoyable. Happy house hunting!
