BC First-Time Home Buyer Programs

The BC Property Transfer Tax (PTT) is normally calculated as 1% on the first $200,000, 2% on $200,000–$2M, 3% on $2M–$3M, and 5% over $3M. As a first-time buyer, you can avoid this entirely or save up to $8,000:

• Full exemption: Properties up to $500,000, you pay $0 in property transfer tax.
• Partial exemption: Properties $500,000–$835,000, savings of up to $8,000, proportionally reduced.
• Phase-out: Properties $835,000–$860,000, the $8,000 benefit phases out completely.
• No exemption: Properties over $860,000, full PTT applies.

Eligibility requirements:

• Canadian citizen or permanent resident
• Lived in BC for at least 12 consecutive months before the purchase, OR filed 2 income tax returns as a BC resident in the past 6 years
• Never owned an interest in a principal residence anywhere in the world
• Must live in the home as your principal residence
• Property must be 0.5 hectares (1.24 acres) or smaller

The FHSA is Canada's most powerful tool for first-time buyers, combining the best features of an RRSP and a TFSA:

• Annual contribution limit: $8,000 per year
• Lifetime contribution limit: $40,000
• Tax-deductible contributions: Like an RRSP, contributions reduce your taxable income
• Tax-free withdrawals: Like a TFSA, withdrawals for a qualifying home purchase are completely tax-free
• Investment growth: Any gains within the FHSA are tax-free
• Can be combined with HBP: You can use both FHSA and RRSP Home Buyers' Plan for the same purchase
• 15-year window: Must use within 15 years of opening the account, or by age 71
• Unused room carries forward: Up to $8,000 of unused room can carry forward to the next year (max $16,000 in one year)

• Maximum withdrawal: $60,000 per person ($120,000 per couple), increased from $35,000 in 2024
• Tax-free: Withdrawals are not included in your taxable income
• 90-day rule: Funds must be in your RRSP for at least 90 days before withdrawal
• Repayment: Must repay in equal instalments over 15 years, starting the 2nd year after withdrawal
• Missed repayments: Any missed repayment is added to your taxable income for that year
• Combine with FHSA: You can use both HBP and FHSA for the same home purchase, potentially $100,000 per person ($200,000 per couple)

• Claim $10,000 on your federal income tax return in the year you buy
• Non-refundable credit: Worth up to $1,500 (15% of $10,000)
• Eligibility: Must not have lived in a home owned by you or your spouse in the current year or any of the 4 preceding years
• Split with spouse: You can split the $10,000 claim with your spouse/partner, but the total cannot exceed $10,000

If you're buying a brand-new home (never been occupied), you may qualify for additional PTT savings, even if you're not a first-time buyer:

• Full exemption: New homes up to $1,100,000 (updated threshold)
• Partial exemption: New homes $1,100,000–$1,150,000
• Must be principal residence: You must move in within 92 days of completion
• Can be combined with first-time buyer exemption: Use whichever gives you the greater benefit

If buying new construction, you pay 5% GST on the purchase price. You may qualify for a partial rebate:

• Homes under $350,000: Rebate of 36% of GST paid, up to $6,300
• Homes $350,000–$450,000: Reduced rebate on a sliding scale
• Homes over $450,000: No federal GST rebate available
• BC provincial rebate: Additional 71.43% rebate of the provincial portion of HST (where applicable)

• 12+ months before: Open an FHSA and start contributing. Get pre-approved for a mortgage. Start saving for your down payment and closing costs.
• 6 months before: Research neighbourhoods. Ensure RRSP funds have been deposited for 90+ days if planning to use HBP. Attend open houses to understand the market.
• 3 months before: Hire a REALTOR® (mandatory buyer representation agreement under BCFSA rules). Finalize your budget including closing costs.
• Making an offer: Your agent will help you navigate subjects (conditions), deposit requirements, and negotiation strategy.
• Subject removal: Complete home inspection, financing confirmation, title search, and insurance arrangements within your subject period (typically 7–14 days).
• Before completion: Withdraw FHSA and/or HBP funds. Arrange home insurance. Review closing documents with your lawyer/notary.
• Completion day: Your lawyer handles the transfer. PTT exemption is applied automatically. You get the keys!
• After purchase: File your Home Buyers' Tax Credit on your next tax return. Start HBP repayments in year 2.