ADAM NAAMANI

First Time Home Buyer Programs in BC October 19, 2025

Home Owner Grant

The Home Owner Grant reduces the amount of property tax you pay on your principal residence. The regular grant amount is $570 for properties located in the Capital Regional District, Metro Vancouver Regional District, and Fraser Valley Regional District. For all other areas of B.C., the grant amount is $770. Property owners must pay at least $350 in property taxes before receiving the regular grant.

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First Time Home Buyers’ Program (Property Transfer Tax)

The First Time Home Buyers’ Program reduces or eliminates the Property Transfer Tax (PTT) when you purchase your first home in B.C. To qualify, the property must:

  • Be used as your principal residence.
  • Have a fair market value of $835,000 or less (effective April 1, 2024).
  • Be 0.5 hectares (1.24 acres) or smaller.

If all requirements are met, you are exempt from PTT on the first $500,000 of the purchase price. A partial exemption applies for homes between $835,000 and $860,000.

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First Home Savings Account (FHSA)

The First Home Savings Account (FHSA) is a registered plan that allows first-time home buyers to save for a qualifying home tax-free (within certain limits):

  • The annual contribution limit is $8,000, and the lifetime limit is $40,000.
  • You can carry forward up to $8,000 of unused contribution room to the following year.
  • Contributions are tax-deductible, and qualifying withdrawals are non-taxable.

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First-Time Home Buyers’ Tax Credit (HBTC)

The First-Time Home Buyers’ Tax Credit (HBTC) provides a non-refundable federal tax credit to help offset closing costs like legal fees and inspections.

  • The credit amount was increased in 2022 from $5,000 to $10,000, providing up to $1,500 in tax relief (based on a 15% federal tax rate).
  • You can claim the HBTC on your income tax return in the year you purchase a qualifying home.

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Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) allows you to withdraw from your RRSP to buy or build a qualifying home.

  • The withdrawal limit increased from $35,000 to $60,000 (effective for withdrawals made after April 16, 2024).
  • You must repay the funds to your RRSP over 15 years.

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GST Rebate for First-Time Home Buyers

In May 2025, the federal government announced a new GST rebate aimed at helping first-time home buyers purchase newly built homes. The rebate, once enacted, will significantly expand the tax relief available to Canadians entering the housing market for the first time.

Under the proposal, eligible buyers will receive a 100% rebate of the federal GST (or the federal portion of HST) on new homes valued at up to $1,000,000. The rebate will then phase out gradually for homes priced between $1,000,000 and $1,500,000, with no rebate available beyond that amount.

To qualify, the home must be used as your primary residence, and you must meet the government’s definition of a first-time home buyer—meaning you haven’t owned (or lived in a home owned by your spouse or common-law partner) as a principal residence during the current year or the previous four years. The program applies to:

  • Newly constructed homes purchased from a builder.
  • Owner-built homes where construction begins after May 27, 2025.
  • Homes substantially completed before 2036.

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