Quick Links

• Federal first-time home buyer programs
• First Home Savings Account (FHSA)
• First-Time Home Buyers' Tax Credit (HBTC)
• Home Buyers' Plan (HBP)
• GST New Housing Rebate
• BC first-time home buyer programs
• BC First Time Home Buyers’ Program
• Home Owner Grant
• Newly Built Home Exemption
• FAQ

Federal First-Time Home Buyer Programs in Canada

First Home Savings Account (FHSA)

A First Home Savings Account (FHSA) is a registered plan that allows first-time home buyers to save for their first home tax-free, up to program limits. It combines two key benefits, contributions are generally tax deductible like an RRSP, and qualifying withdrawals for a first home purchase are tax free like a TFSA. To open an FHSA you must be 19 years or older, a resident of Canada, and a first-time home buyer. This account is especially useful for buyers planning a purchase several years out.

Find out more about the FHSA.

First-Time Home Buyers' Tax Credit (HBTC)

This federal credit helps first-time buyers recover some of the costs associated with purchasing a home, including legal fees, inspections, and other closing expenses. The First-Time Home Buyer’s Tax Credit is a non-refundable credit of $10,000, resulting in a maximum tax rebate of $1,500. While it does not provide cash at closing, it can reduce income tax payable after the purchase.

Details on the First-Time Home Buyers’ Tax Credit.

Home Buyers' Plan (HBP)

The Home Buyers' Plan allows first-time home buyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to help purchase a home. You may withdraw up to $60,000 in a single calendar year, or up to $120,000 combined if purchasing with a partner. These withdrawals are treated as a loan from your RRSP and must be repaid over a period of up to 15 years to avoid tax consequences. This program can reduce the amount of cash required for your down payment.

Check to see if you qualify for the Home Buyers’ Plan.

GST New Housing Rebate

You may be eligible for a rebate on a portion of the GST paid when purchasing or constructing a new home, or when substantially renovating an existing home. This rebate may also apply when building an addition or converting a non-residential property into a residential home. Under the standard GST New Housing Rebate rules, the rebate is available only if the fair market value of the home is below $450,000, with the rebate amount gradually reduced as the value approaches that threshold.

Check eligibility for the GST New Housing Rebate.

First-Time Home Buyer GST Relief on New Homes

There is now a separate federal GST or HST rebate specifically for eligible first-time home buyers purchasing newly built homes or substantially renovated properties. Under current CRA guidance, qualifying buyers may eliminate the GST, or the federal portion of the HST, on eligible homes valued up to $1,000,000. For qualifying homes priced between $1,000,000 and $1,500,000, the rebate is reduced on a sliding scale. Homes above $1,500,000 do not qualify.

This rebate is separate from the standard GST/HST New Housing Rebate that applies to lower price thresholds. Where both programs apply, the first-time buyer rebate may effectively act as a top-up. Because eligibility rules, contract timing and occupancy requirements are important, buyers should confirm program details before relying on this incentive.

Read the CRA first-time home buyer GST/HST rebate details.

BC First-Time Home Buyer Programs and Property Tax Savings

BC First Time Home Buyers’ Program

Eligible first-time buyers in British Columbia may qualify for a full or partial exemption from Property Transfer Tax (PTT). For properties with a fair market value under $835,000, PTT is not payable on the first $500,000 and is payable only on the portion above that amount. This can result in savings of up to $8,000. Properties with a fair market value between $835,000 and $860,000 may qualify for a partial exemption. Homes above $860,000 do not qualify.

BC First Time Home Buyers’ Program eligibility details.

Home Owner Grant

The BC Home Owner Grant can reduce the annual property taxes payable on your principal residence. While not limited to first-time buyers, it can reduce ongoing ownership costs. For homeowners under 65 in Metro Vancouver and the Fraser Valley, the basic grant may be up to $570, while homeowners in other areas of BC may qualify for up to $770.

Home Owner Grant eligibility information.

Newly Built Home Exemption

Buyers of newly built homes in British Columbia may qualify for the Newly Built Home Exemption, which can reduce or eliminate Property Transfer Tax on homes valued at $1,100,000 or less. A partial exemption is available for properties slightly above this threshold, with the exemption fully phased out once the fair market value exceeds $1,150,000.

Newly Built Home Exemption details.

Who Qualifies as a First-Time Home Buyer

In general, a first-time home buyer is someone who has never owned a principal residence anywhere in the world. Some programs allow buyers who previously owned a home but have not owned one for a number of years to qualify again. Because eligibility rules vary by program, requirements should be confirmed before relying on any incentive.

How Much Can First-Time Buyers Save

Depending on purchase price, property type, and eligibility, first-time buyers in British Columbia may save thousands, and in some cases tens of thousands of dollars, through a combination of the FHSA, Home Buyers’ Plan, federal tax credits, BC Property Transfer Tax exemptions, and rebates available on qualifying newly built homes.

For example, a first-time buyer purchasing a qualifying newly built home may benefit from a combination of savings including FHSA tax deductions, the federal first-time home buyers’ tax credit, potential BC Property Transfer Tax exemption, and in some cases a GST or HST rebate on new construction. When layered together, these programs can materially change affordability calculations and purchase timing decisions.

Frequently Asked Questions for First-Time Home Buyers in BC

Can I use more than one first-time home buyer program?

Yes. Many programs can be combined, including the FHSA, Home Buyers’ Plan, federal tax credits, and eligible BC Property Transfer Tax exemptions.

Do first-time buyers pay Property Transfer Tax in BC?

Eligible buyers may receive a full or partial exemption depending on the property’s fair market value and other criteria.

Can first-time buyers purchase condos or townhomes?

Yes. Condos, townhomes, and detached homes can qualify if program requirements are met and the property will be your principal residence.

Is the First-Time Home Buyers’ Tax Credit paid at closing?

No. The credit is claimed when you file your income tax return and reduces tax payable after purchase.

Does the Home Buyers’ Plan count as taxable income?

No, provided repayment rules are followed.

Can first-time buyers get a GST rebate on a new home?

Yes. Eligible first-time buyers may qualify for a federal GST or HST rebate on qualifying newly built homes used as a primary residence. Under current CRA guidance, full relief may be available on eligible homes priced up to $1,000,000, with partial relief available up to $1,500,000.

Eligibility rules and effective dates may change. Buyers should confirm current requirements before relying on this relief.