First-Time Buyer Programs in British Columbia (2025 Edition)

Overview of 2025 Programs in B.C.

Soaring prices mean most Greater Vancouver buyers still lean on government incentives to scrape together a competitive offer. As of July 2025 the major supports fall into three buckets: provincial transfer-tax relief, federal tax-sheltered savings plans and targeted tax credits or rebates. Use this guide alongside our !INSERT LINK: First-Time Home Buyer Guide! and !INSERT LINK: Mortgage Basics Guide! resources to map out a realistic budget that covers down payment and closing costs.

Key Takeaways

• PTT First-Time Home Buyers’ Exemption: Zero tax on the first $500 k when the purchase price is ≤ $835 k, with a sliding partial exemption up to $860 k (B.C. Government (2025)).
• RRSP HBP: Withdraw up to $60 k tax-free—almost double the old cap—and repayments now start five years after withdrawal for 2022-25 participants (CRA (2024)).
• FHSA: Contribute $8 k per year (lifetime $40 k) and withdraw tax-free for your first purchase (CRA (2025)).
• Home Buyers’ Amount: Claim a $10 k credit (worth up to $1 500) on your tax return (CRA (2025)).
• GST Rebate on New Builds: Full GST rebate on newly built homes ≤ $1 million and tapered relief up to $1.5 million—worth as much as $50 k on a $1 million presale (Finance Canada (2025)).
• FTHBI discontinued: CMHC stopped accepting applications on 21 Mar 2024; existing shared-equity agreements remain in force (CMHC (2024)).

Property Transfer Tax Relief

B.C.’s First-Time Home Buyers’ Exemption knocks a sizeable chunk off your closing costs, often the biggest out-of-pocket expense after your down payment.

Who qualifies?

• Canadian citizen or permanent resident who has never owned property anywhere in the world.
• Will occupy the home as your principal residence within 92 days of completion.
• Purchase price ≤ $835 k for a full exemption or ≤ $860 k for a partial break.

Example savings

On a $750 k condo you would normally pay about $12 k in PTT. As a qualified first-time buyer you pay $0, freeing up cash for inspections, furniture or higher mortgage pre-payments. If you buy with a partner who already owns property, only your share is exempt, so the blended tax still falls dramatically but isn’t nil.

If you’re eyeing a presale unit, note the separate Newly Built Home Exemption (now full up to $1.1 million) which you can’t stack with the first-time program—run the numbers carefully with your lawyer or notary.

Federal Tax-Sheltered Accounts

RRSP Home Buyers’ Plan (HBP)

The 2024 federal budget raised the withdrawal ceiling to $60 000. You and a partner can each pull that amount, meaning up to $120 k toward a down payment. Withdrawals made between 2022-2025 get a three-year repayment holiday, so the 15-year pay-back clock starts in year five—valuable breathing room while mortgage payments are highest. Remember that the money must sit in your RRSP at least 90 days before withdrawal to qualify.

First Home Savings Account (FHSA)

Think of the FHSA as a hybrid TFSA-RRSP designed expressly for first homes. Contributions lower your taxable income, investment growth is tax-sheltered and qualifying withdrawals are tax-free—essentially triple-advantaged. Strategy tip: open an FHSA the year you start saving even if you can’t maximize the $8 k room right away—unused space rolls forward.

Fast facts

• $8 000 annual contribution room, lifetime $40 000.
• Funds can grow for up to 15 years or until the end of the year you turn 71.
• You can combine an FHSA withdrawal and an HBP withdrawal for the same purchase, giving couples a theoretical $200 k of sheltered savings.

Federal Credits & Rebates

Home Buyers’ Amount (Line 31270)

Claim up to $10 000 in the year of purchase to generate a maximum tax reduction of $1 500. Couples can split the amount any way they like as long as the total stays within the $10 k cap. Include the figure on your T1 return; there’s no separate application form.

New GST Rebate on Newly Built Homes

Announced in May 2025, the FTHB GST Rebate eliminates the 5 % federal GST on new homes priced up to $1 million and offers a sliding rebate to $1.5 million. For a $900 k presale condo the rebate is worth a cool $45 000, slashing the effective price to $855 k. The agreement of purchase and sale must be dated on or after 27 May 2025. You have to be the first occupant and move in within a year of completion.

Stacking Strategies

Most buyers will layer incentives: use the FHSA for early savings, tap the higher RRSP HBP limit to push your down payment past the 20 % insurance threshold, then claim the PTT exemption and Home Buyers’ Amount to blunt closing costs. Add the GST rebate if you are buying new construction. The combined savings can easily exceed $75 k on a modest condo—enough to preserve emergency savings or avoid high-ratio mortgage insurance altogether. Map each incentive against your timeline; for instance, you need an RRSP contribution to settle 90 days before HBP withdrawal, while FHSA contributions create room only after January 1 of the following year.

Programs That Have Ended

The First-Time Home Buyer Incentive (FTHBI)—the shared-equity plan launched in 2019—closed to new applications in March 2024. If you already have an FTHBI loan, your obligations (including repayment on sale or after 25 years) remain unchanged. You may still combine your existing incentive with the new GST rebate or altered HBP rules.

FAQs

Q: Can I combine the PTT exemption with the Newly Built Home exemption?
A: No. B.C. only lets you claim one PTT exemption per transaction. Crunch the numbers with your lawyer or notary to pick the bigger benefit.

Q: Do I need to repay my FHSA withdrawals?
A: No—unlike the RRSP HBP, FHSA withdrawals that meet the qualifying rules are permanently tax-free.

Q: What happens if my purchase price creeps above $860 k before closing?
A: The first-time PTT exemption will be lost. Consider adding a price-protection clause or budgeting for full tax just in case.

Need personalised advice? Reach out any time.

This guide provides general information only and may not reflect the latest regulations or market conditions. It is not legal or financial advice. Always verify details and consult qualified real-estate, mortgage, and legal professionals before making decisions.