A Guide to the First Time Homebuyer Program in BC

For many aspiring homeowners in British Columbia, the BC First-Time Home Buyers’ Program remains an important tool as housing costs continue to challenge affordability across the province.

While the federal First-Time Home Buyer Incentive ended in 2024, British Columbia’s provincial property transfer tax exemption program is still available and can help eligible buyers reduce one of the largest upfront costs associated with purchasing a home.

Through this provincial program, qualifying first-time buyers may receive a full or partial exemption from the Property Transfer Tax (PTT) when purchasing their first home in British Columbia.

Combined with federal programs such as the First Home Savings Account (FHSA), the Home Buyers’ Plan (HBP), and the Home Buyers’ Amount tax credit, the exemption can make entering the housing market more affordable.

This guide explains how the BC First-Time Home Buyers’ Program works, who qualifies, how to apply, and what other federal and provincial incentives may help first-time buyers in Canada.

What is the first time homebuyer program?

The BC First-Time Home Buyers’ Program is a provincial tax exemption that reduces or eliminates the Property Transfer Tax (PTT) for eligible first-time homebuyers purchasing a qualifying property in British Columbia.

Property Transfer Tax is typically paid when real estate changes ownership in BC. Depending on the property value, this tax can add thousands of dollars to closing costs. The First-Time Home Buyers’ Program helps reduce that financial burden for eligible buyers.

As of 2026:

• A full exemption is available for qualifying homes with a fair market value of $835,000 or less
• A partial exemption may apply to homes valued between $835,001 and $859,999
• Homes valued at $860,000 or more do not qualify for the exemption

The exemption applies only to qualifying buyers who intend to use the property as their principal residence.

What happened to the federal First-Time Home Buyer Incentive?

The federal First-Time Home Buyer Incentive (FTHBI), launched in 2019 through the Canada Mortgage and Housing Corporation (CMHC), officially ended in 2024.

The program previously offered shared-equity financing to help eligible buyers reduce their monthly mortgage payments. Under the program, the federal government contributed a percentage of the home purchase price in exchange for shared equity in the property.

Although the federal incentive ended, several other federal first-time homebuyer programs remain available, including:

• First Home Savings Account (FHSA)
• Home Buyers’ Plan (HBP)
• Home Buyers’ Amount tax credit
• GST/HST New Housing Rebate

These programs can often be combined with the BC First-Time Home Buyers’ Program.

How does the BC first time homebuyer program work?

The BC program works by reducing or eliminating the Property Transfer Tax owed when purchasing your first home.

Current BC Property Transfer Tax rates

In British Columbia, Property Transfer Tax is generally calculated as:

• 1% on the first $200,000 of the purchase price
• 2% on the portion between $200,000 and $2,000,000
• 3% on the portion above $2,000,000
• Additional taxes may apply to higher-value properties

Without an exemption, the tax on a home purchase can be substantial.

Example of potential savings

For example:

• A $700,000 home would normally incur approximately $12,000 in Property Transfer Tax
• If the buyer qualifies for the full exemption, they may pay little or no PTT

This can significantly reduce upfront closing costs and make homeownership more attainable for eligible buyers.

Who is eligible for the BC first-time home buyers’ program?

To qualify for the BC First-Time Home Buyers’ Program, buyers must meet several eligibility requirements related to residency, citizenship, ownership history, and property type.

Canadian citizen or permanent resident

You must be either:

• A Canadian citizen, or
• A permanent resident of Canada

Non-residents and foreign buyers are not eligible for the exemption.

First-time homebuyer status

To qualify, you must never have owned:

• A principal residence anywhere in the world, or
• An interest in residential property that was your principal residence

This includes ownership both inside and outside Canada.

BC residency requirement

You must either:

• Have lived in British Columbia for at least 12 consecutive months immediately before the registration date, or
• Have filed at least two BC income tax returns within the previous six taxation years

Previous exemptions

You cannot have previously received a first-time home buyers’ exemption or refund in BC.

Occupying the property

The home must become your principal residence.

You must:

• Move into the home within 92 days of registration
• Continue using the property as your principal residence for at least one year

If you fail to meet the occupancy requirements, you may lose the exemption and be required to repay the tax.

Property value requirements

As of 2026:

• Full exemption: fair market value of $835,000 or less
• Partial exemption: fair market value between $835,001 and $859,999
• No exemption: fair market value of $860,000 or more

The exemption amount gradually decreases as the property value approaches the maximum threshold.

Property size requirements

To qualify for a full exemption:

• The property must be 0.5 hectares (1.24 acres) or smaller

Larger properties may qualify only for a partial exemption.

Eligible property types

Eligible properties may include:

• Detached homes
• Condominiums
• Townhouses
• Duplexes
• Manufactured homes attached to land
• Certain newly built homes

The property must be located within British Columbia.

How to apply for the BC first-time home buyers’ program

Applying for the exemption is generally straightforward and is usually completed during the closing process with the assistance of your lawyer or notary.

1. Confirm eligibility
   Before purchasing a property, review all program requirements carefully to ensure you qualify.
   
2. Get pre-approved for a mortgage
   A mortgage pre-approval helps determine:
   • Your borrowing capacity
   • Estimated monthly payments
   • Your target price range
   • This can make the home-buying process more efficient and competitive.
     
3. Find a qualifying property
   Work with a real estate professional to identify homes that:
   • Meet your budget
   • Fall within exemption value limits
   • Satisfy your long-term housing needs
     
4. Complete the property purchase
   Once your offer is accepted:
   • Your lawyer or notary prepares the closing documents
   • You complete the First-Time Home Buyers’ Property Transfer Tax forms
   • The exemption application is submitted during property registration
   • If approved, the exemption is applied directly to your Property Transfer Tax calculation.
     
5. Keep supporting documentation
   You should retain copies of:
   • Tax returns
   • Proof of residency
   • Purchase documents
   • Mortgage paperwork
   • Identification documents
   • The province may request proof of eligibility later.

Pros and cons of BC’s first time homebuyer program

Like any housing incentive, the program has both advantages and limitations.

Pros of BC’s first time homebuyer program

• Reduced closing costs
  The exemption can save eligible buyers thousands of dollars in Property Transfer Tax.
• Easier entry into the housing market
  Reducing upfront costs may help buyers purchase a home sooner.
• Partial exemptions still available
  Even if a property slightly exceeds the full exemption threshold, buyers may still receive meaningful tax savings through the partial exemption.
• Can be combined with federal programs
  The BC exemption may be used alongside federal savings programs such as:
  • FHSA
  • Home Buyers’ Plan
  • Home Buyers’ Amount tax credit

Cons of BC’s first time homebuyer program

• Property value limits
  In expensive markets such as Metro Vancouver and parts of the Fraser Valley, many homes exceed the exemption thresholds.
• Occupancy requirements
  Buyers must live in the home as their principal residence for at least one year.
• Property size restrictions
  Larger rural properties may only qualify for partial exemptions.
• Limited direct financial assistance
  Unlike the discontinued federal First-Time Home Buyer Incentive, the BC program does not provide down payment assistance or shared-equity financing.

Other federal programs for first-time homebuyers

Several federal programs can help first-time buyers reduce taxes, save for a down payment, or lower upfront housing costs.

First Home Savings Account (FHSA)

The First Home Savings Account allows eligible Canadians to save for a first home on a tax-advantaged basis.

Key FHSA features

• Annual contribution limit: $8,000
• Lifetime contribution limit: $40,000
• Contributions are tax-deductible
• Investment growth is tax-free
• Qualified withdrawals for a first home are tax-free

The FHSA combines some benefits of both an RRSP and a TFSA.

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time buyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to purchase a home.

Current withdrawal limits

As of 2026:

• Individuals may withdraw up to $60,000
• Couples may withdraw up to $120,000 combined

The withdrawn amount must generally be repaid to the RRSP over 15 years.

Home Buyers’ Amount tax credit

Eligible first-time buyers may claim the federal Home Buyers’ Amount tax credit after purchasing a qualifying home.

Current credit amount

Eligible buyers may claim:

• Up to $10,000 on their tax return
• Which can provide up to approximately $1,500 in federal tax relief

This credit may help offset expenses such as:

• Legal fees
• Land transfer taxes
• Home inspections
• Moving costs

GST/HST New Housing Rebate

Buyers purchasing newly built homes may qualify for a federal GST/HST New Housing Rebate.

Eligibility depends on factors such as:

• Purchase price
• Province
• Whether the property is a primary residence
• Builder arrangements

Partial rebates may still be available for certain higher-priced homes.

Because rebate rules can change, buyers should confirm current thresholds with the Canada Revenue Agency or a qualified tax professional.

Other provincial first-time homebuyer programs in Canada

Several provinces offer tax rebates, exemptions, or reduced transfer fees for first-time buyers.

Ontario

Ontario offers:

• Land Transfer Tax rebates of up to $4,000 for eligible first-time buyers
• Additional municipal rebates in Toronto

Prince Edward Island

PEI offers:

• Land transfer tax exemptions for qualifying first-time buyers purchasing eligible homes

Quebec

Quebec municipalities may provide:

• First-time homebuyer grants
• Transfer tax rebates
• Local tax credits

Programs vary by municipality.

Saskatchewan

Saskatchewan has relatively low land title transfer fees compared to many other provinces, helping reduce closing costs for buyers.

Alberta

Alberta does not have a provincial land transfer tax. Instead, buyers pay relatively low title registration and mortgage registration fees compared to many other provinces.

Manitoba

Manitoba charges land transfer tax on home purchases, though rates remain lower than some higher-cost provinces.

New Brunswick

New Brunswick applies a 1% property transfer tax on most real estate transactions.

Nova Scotia

Nova Scotia municipalities may charge deed transfer taxes, which vary depending on location.

Tips for first-time homebuyers in BC

Improve your credit score

A stronger credit score may help you:

• Qualify for better mortgage rates
• Lower monthly payments
• Improve mortgage approval odds

Budget for closing costs

In addition to your down payment, budget for:

• Legal fees
• Home inspections
• Appraisals
• Insurance
• Moving expenses
• Utility setup costs

Compare mortgage options

Different lenders offer different:

• Interest rates
• Mortgage terms
• Penalty structures
• Flexibility features

Comparing offers can potentially save thousands over the life of your mortgage.

Understand ongoing ownership costs

Homeownership includes recurring expenses such as:

• Property taxes
• Maintenance
• Utilities
• Strata fees
• Insurance

Make sure your long-term budget remains sustainable.

Conclusion

The BC First-Time Home Buyers’ Program continues to provide valuable tax savings for eligible buyers entering the housing market. By reducing or eliminating Property Transfer Tax, the program can lower upfront purchasing costs and make homeownership more accessible for qualifying British Columbians.

When combined with federal programs such as the FHSA, Home Buyers’ Plan, and Home Buyers’ Amount tax credit, eligible buyers may be able to significantly improve their financial readiness for purchasing a first home.

Although housing affordability remains a challenge across many parts of British Columbia, understanding the available programs and eligibility requirements can help first-time buyers make informed decisions and move toward homeownership with greater confidence.

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