First‑Time Home Buyer Guide (BC)

Programs, exemptions, and financial advantages available to first‑time buyers

1. Property Transfer Tax (PTT) – First Time Home Buyers’ Program

This is the biggest savings for most first‑time buyers.

What it does

Eliminates or reduces the Property Transfer Tax.

Who qualifies (general rules)

• Must be a Canadian citizen or permanent resident
• Must have never owned property anywhere in the world
• Must use the home as your principal residence
• Property must be under the program price threshold (varies by year)

What buyers save

• Full exemption up to the threshold
• Partial exemption above the threshold (phased out gradually)

This can save buyers tens of thousands depending on the purchase price.

2. Newly Built Home PTT Exemption

For buyers purchasing a brand‑new home (developer-built, substantially renovated, or new construction).

What it does

• Eliminates or reduces PTT on new homes under the program threshold.

Who qualifies

• Must use the home as a principal residence
• Applies to any buyer, not just first‑timers

This is huge for buyers considering pre‑sales or new builds.

3. First Home Savings Account (FHSA)

A newer federal program that combines the best parts of an RRSP and TFSA.

What it does

• Buyers can contribute up to a yearly and lifetime limit
• Contributions are tax‑deductible
• Withdrawals for a first home are tax‑free

Why it matters

This is the most powerful savings tool for first‑time buyers right now.

4. Home Buyers’ Plan (HBP) – RRSP Withdrawal

Allows first‑time buyers to use their RRSP savings for a down payment.

What it does

• Withdraw up to the program limit from RRSPs
• No tax withheld
• Must repay over time (like an interest‑free loan to yourself)

Who qualifies

• Must be a first‑time buyer under federal rules
• Must occupy the home as a principal residence

5. GST New Housing Rebate

For buyers purchasing new construction.

What it does

• Rebates a portion of the GST paid on a new home
• Applies to both first‑time buyers and repeat buyers (with conditions)

Who qualifies

• Must use the home as a primary residence
• Applies to new builds, owner‑built homes, and major renovations

6. First‑Time Home Buyer Tax Credit (Federal)

A simple tax credit that reduces income tax owed.

What it does

• Provides a non‑refundable tax credit on your tax return
• Helps offset closing costs like legal fees and inspections

7. CMHC / Insured Mortgage Flexibilities

First‑time buyers often benefit from:

Options

• Lower down payment requirements
• Ability to use gifted funds
• Programs supporting newcomers, self‑employed buyers, and modest incomes

These aren’t “programs” but they make financing more accessible.

8. BC Housing Programs (varies by year)

BC occasionally offers targeted programs such as:

• Down payment assistance
• Affordable homeownership initiatives
• Shared equity programs

These come and go, so buyers should check current availability.

9. Additional Advantages for First‑Time Buyers

Even without formal programs, first‑timers often benefit from:

Lower closing costs

No need to sell a home first, so:

• No realtor fees on the selling side
• No bridge financing
• No moving twice

More flexible possession dates

Sellers often like first‑time buyers because they’re not stuck in a chain.

10. How I Help First‑Time Buyers –  REALTOR® Value

• Explain every step clearly 
• Connect them with mortgage brokers who specialize in first‑time buyers
• Provide Comparative Market Analysis to negotiate with confidence
• Guide them through inspections, strata documents, and closing