First Time Home Buyer Incentives
First Home Savings Account (FHSA)
You save for your first home with contributions that are tax-deductible, and withdrawals used to buy your first home are tax-free.
Who Qualifies / Key Conditions
- Must be a “first-time homebuyer” (you haven’t owned a home in the current or past 4 calendar years)
- Must be a Canadian resident with a Social Insurance Number (SIN)
- Must intend to use the withdrawn funds to purchase a qualifying home and live in it as your principal residence within 1 year
Important Limits & Notes
- Annual contribution limit: $8,000 (plus carry-forward of unused room)
- Lifetime contribution limit: $40,000
- Must use or transfer funds within 15 years or before the end of the year you turn 71, otherwise you’ll have to transfer to RRSP or make a taxable withdrawal
- You can combine FHSA and RRSP Home Buyers’ Plan for the same home purchase
Newly Built Home PTT Exemption (BC)
If you are buying a newly built home (or constructing on vacant land), you may qualify for a full or partial exemption from property transfer tax.
Who Qualifies / Key Conditions
- The home must be newly constructed, newly subdivided, or substantially renovated to qualify under “newly built” definitions
- Must intend it as your principal residence and satisfy other PTT conditions (move in within required time, etc.)
Important Limits & Notes
- Full exemption if FMV ≤ $1,100,000
- Partial exemption if FMV between $1,100,000 and $1,150,000
- Same 0.5 hectares / residential improvements / occupancy conditions apply
GST/HST New Housing Rebate
When you buy a new or substantially renovated home, you may recover part of the GST (or HST) paid.
Who Qualifies / Key Conditions
- Home must be new or substantially renovated, used as primary residence
- You must meet other rebate eligibility rules under federal law
Important Limits & Notes
The rebate is applied to the federal portion (not necessarily provincial taxes) of GST paid, within certain maximums and thresholds (varies by province)
BC Home Owner Grant
This is not just for first-time buyers — it reduces the annual property taxes you pay on your principal residence.
Who Qualifies / Key Conditions
- Must be a BC resident
- The home must be your principal residence
- The property assessed value must be under a threshold (varies by region)
Important Limits & Notes
- Up to $570 reduction in Metro Vancouver / Fraser Valley / Capital Regional District
- Up to $770 in other parts of BC
- For seniors, veterans, or those with disability, a larger grant (up to $1,045) in some cases
As a first time home buyer, the province of BC has some incentives that you should be aware of, and that you should definitely take advantage of.
Read below for some of the incentives you may qualify for:
Home Buyers’ Plan (HBP)
Lets you withdraw from your RRSP (tax-free, for now) to use toward buying your first home.
Who Qualifies / Key Conditions
- You (and your spouse/partner, if applicable) must be first-time homebuyers under HBP rules.
- The home must qualify and you must meet other conditions under the HBP.
Important Limits & Notes
- As of recent updates, you can withdraw up to $60,000 per person (so a couple could use up to $120,000)
- Must repay the amount over 15 years (starting the second year after withdrawal)
BC First-Time Home Buyers’ Program (PTT Exemption / Refund)
Reduces or eliminates the Property Transfer Tax (PTT) payable when buying your first home in BC.
Who Qualifies / Key Conditions
To qualify:
1. Must be a Canadian citizen or permanent resident
2. Must have lived in BC for at least 12 consecutive months immediately before the registration or have filed BC income tax returns in 2 of the last 6 years
3. Must never have owned a registered interest in a principal residence anywhere in the world.
4. The property must be your principal residence, ≤ 0.5 hectares, and only residential improvements
5. Fair market value (FMV) thresholds must be met
6. Move in within 92 days and occupy for at least 1 year after registration (to retain the exemption)
Important Limits & Notes
- Full exemption on PTT if the home’s FMV is $835,000 or less (as of April 1, 2024)
- Partial exemption for properties with FMV between $835,000 and $860,000
- If FMV over $860,000, no exemption applies.
- The exemption applies only to the first $500,000 of the purchase price (i.e. you’re exempt from PTT on that portion)
- If you co-own the property and only one of you qualifies, only that portion is exempt
- You may apply for a refund if you failed to claim at registration, from first anniversary up to 18 months after registration
First-Time Home Buyers’ Tax Credit (Canada)
A non-refundable tax credit you can claim in your tax return in the year you purchase your first home — helps offset closing costs.
Who Qualifies / Key Conditions
You must be a first-time homebuyer and buy a qualifying home in that tax year
Important Limits & Notes
The credit is $10,000 of eligible home purchase amount, which yields a tax benefit around $1,500 (depending on your tax bracket)