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Navigating the B.C. Market as a First-Time Buyer

Posted on March 15, 2025 by Judy Sehling

As of March 15, 2025.

B.C. First-Time Home Buyers’ Program

The B.C. First-Time Home Buyers’ Program offers a reduction or exemption on the Property Transfer Tax (PTT) for eligible buyers.

Full Exemption: Available for homes valued up to $500,000, eliminating the PTT entirely.
Partial Exemption: Applies to homes between $500,000 and $835,000, reducing the tax by up to $8,000.
Phase-out Range: Homes priced between $835,000 and $860,000 receive a gradually decreasing exemption.

Eligibility Requirements:

To qualify, you must:

Be a Canadian citizen or permanent resident.
Have either:
- Lived in B.C. for at least 12 months immediately before the property registration date, or
- Filed at least two income tax returns as a B.C. resident in the last six taxation years.
Never have owned a principal residence anywhere in the world.
Not have previously claimed this exemption.

B.C. Home Owner Grant

This annual property tax reduction benefits both first-time and repeat homeowners.

Grant Amounts:
- Up to $570 for properties in the Capital Regional District, Metro Vancouver Regional District, and Fraser Valley Regional District.news.gov.bc.ca
- Up to $770 for properties in other areas of B.C.
Thresholds:
- For the 2025 tax year, the grant threshold is $2,175,000. The grant amount is reduced by $5 for every $1,000 your property value exceeds this threshold.
- The regular grant is eliminated on properties assessed at $2,289,000 or more.
- The additional grant is eliminated on properties assessed at $2,344,000 or more.

Eligibility Requirements:

To qualify, you must:

Be a Canadian citizen or permanent resident.
Live in B.C.
Be the registered owner of the home.
Occupy the home as your principal residence.

Newly Built Home Exemption

This program reduces or eliminates the Property Transfer Tax (PTT) for newly constructed homes.

Full Exemption: For newly built homes valued up to $1,100,000.
Partial Exemption: Available for homes valued between $1,100,000 and $1,150,000.

Note: These thresholds are effective as of April 1, 2024.

Federal Assistance for First-Time Home Buyers in B.C.

Home Buyers’ Plan (HBP)

Withdraw up to $60,000 tax-free from your Registered Retirement Savings Plan (RRSP) for a down payment.

Eligibility Requirements:

Must be a first-time home buyer.
Must intend to use the property as a principal residence within one year.
Withdrawn funds must be repaid within 15 years.

First Home Savings Account (FHSA)

A tax-free savings account designed for first-time home buyers to grow their down payment.

Contribution Limits:
- Up to $8,000 per year.
- Lifetime cap of $40,000.
Tax Benefits:
- Contributions are tax-deductible.
- Investment growth within the account is tax-free.
- Withdrawals (including investment gains) are tax-free when used for a home purchase.

First-Time Home Buyers’ Tax Credit

A non-refundable tax credit worth $10,000, which provides a tax rebate of up to $1,500.

Helps cover closing costs but does not impact mortgage qualification.

GST/HST New Housing Rebate

If you buy or build a new home, or undertake significant renovations, you may be eligible to recover a portion of the GST/HST paid.

Eligibility varies by property type and location, so confirm details before proceeding.