First-Time Home Buyer Programs in BC: What You Can Use in 2026

Buying your first home in BC is a big step, and there is more help available than many first-time buyers realize. Some programs lower what you pay at closing, others help you save your down payment faster, and a few recent changes make a real difference. Here is what is available in 2026, who qualifies and how the pieces fit together.

The short version

Who counts as a first-time buyer?

It depends on the program. For the federal programs, you generally qualify if you have not lived in a home owned by you or your spouse or common-law partner in the current year or the previous four years. BC's property transfer tax exemption is stricter: you must never have owned an interest in a principal residence anywhere in the world.

BC property transfer tax: the First Time Home Buyers' Program

Property transfer tax is charged when your purchase is registered: 1% on the first $200,000 of the fair market value, 2% on the portion up to $2 million, and higher rates above that. On an $800,000 home, that is $14,000.

Eligible first-time buyers pay no tax on the first $500,000 of a home worth up to $835,000, a saving of up to $8,000. On that $800,000 home, the bill drops to $6,000. A partial exemption applies between $835,000 and $860,000, and there is none above that.

The main conditions:

• You are a Canadian citizen or permanent resident.
• You have lived in BC for 12 consecutive months right before the purchase, or filed at least two income tax returns as a BC resident in the last six years.
• You have never owned an interest in a principal residence anywhere in the world, and have never used this exemption before.
• The home will be your principal residence. You move in within 92 days and live there for the rest of the first year.

Your lawyer or notary claims the exemption on your property transfer tax return when your purchase is registered.

BC's Newly Built Home Exemption

If you are buying a newly built home, a separate exemption can remove the property transfer tax entirely, whether or not it is your first home. Homes with a fair market value up to $1,100,000 qualify for a full exemption, worth up to $20,000, and a partial exemption applies up to $1,150,000. You must be a Canadian citizen or permanent resident, and the home must be your principal residence: you move in within 92 days and live there for the rest of the first year.

First Home Savings Account (FHSA)

The FHSA combines the best features of an RRSP and a TFSA. Contributions are tax-deductible, and qualifying withdrawals to buy your first home are tax-free.

• Limits. $8,000 a year, up to $40,000 in total.
• Carry-forward. Up to $8,000 of unused room carries into the next year, but only once the account is open, so it pays to open one early even if you cannot contribute much yet.
• Time limit. The account can stay open for up to 15 years, but it closes sooner if you turn 71 or make your first qualifying withdrawal, by the end of that year or the year after.
• Couples. Each eligible person can have their own, so together a couple can save up to $80,000.

RRSP Home Buyers' Plan

The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSPs, tax-free, to buy or build a qualifying home, or up to $120,000 for a couple who both qualify. You can use it together with your FHSA for the same home.

It works like a loan to yourself, repaid to your RRSP over 15 years. Repayments normally start in the second year after your withdrawal, but under temporary relief, if your first withdrawal is made between 2022 and the end of 2028, they start in the fifth year. Any amount you do not repay on schedule is added to your taxable income for that year.

First-Time Home Buyers' Tax Credit

For the year you buy, you can claim the home buyers' amount of $10,000 on your federal tax return (line 31270). It is a non-refundable credit worth $1,400 for a 2026 purchase. You and your spouse or common-law partner can split it, as long as the total claimed does not exceed $10,000. Buyers who qualify for the disability tax credit, or who are buying for a related person who does, may be able to claim it even if they are not first-time buyers.

First-Time Home Buyers' GST Rebate on new homes

This rebate became law in March 2026. If you are a first-time buyer purchasing a newly built home, you can get back all of the GST on a home up to $1 million, a rebate of up to $50,000, with a partial rebate on homes between $1 million and $1.5 million. On a new $900,000 home, the GST alone is $45,000.

It applies to purchase agreements signed on or after March 20, 2025 and before 2031, for homes where construction starts before 2031, and the home has to be your primary residence. You must be at least 18 and a Canadian citizen or permanent resident. Your builder may credit the rebate at closing, or you can apply to the Canada Revenue Agency yourself. Combined with BC's Newly Built Home Exemption, the savings on a new home can be substantial.

Mortgage rules that help first-time buyers

• A lower minimum down payment. On homes under $1.5 million, you need 5% of the first $500,000 and 10% of the rest. On an $800,000 home, that is $55,000. Homes of $1.5 million or more need 20% down.
• 30-year amortization. Since December 15, 2024, first-time buyers with an insured mortgage, meaning less than 20% down, can spread their payments over 30 years instead of 25. The same applies to anyone buying a newly built home. That lowers the monthly payment, although you pay more interest over the life of the mortgage.
• The stress test still applies. You will need to qualify at the higher of 5.25% or your mortgage rate plus 2%.

Mortgage default insurance is required when you put down less than 20%, and the premium is usually added to your mortgage. To see how the numbers work for you, try my mortgage calculator and read about what interest rates mean for buyers in Greater Vancouver and the Fraser Valley.

How it fits together

Questions first-time buyers often ask me

How much property transfer tax do first-time buyers save in BC?

Eligible first-time buyers pay no tax on the first $500,000 of a home worth up to $835,000, which saves up to $8,000. There is a partial exemption between $835,000 and $860,000. On a newly built home, the separate Newly Built Home Exemption can remove the tax entirely for homes up to $1,100,000.

Can I use the FHSA and the RRSP Home Buyers' Plan together?

Yes. You can make a qualifying FHSA withdrawal and a Home Buyers' Plan withdrawal for the same home, which together can mean up to $100,000 per person, plus any investment growth in your FHSA.

Does the first-time buyer GST rebate apply to resale homes?

No. It is for newly built homes. Resale homes are generally exempt from GST in the first place.

What is the minimum down payment for a first home?

For homes under $1.5 million, it is 5% of the first $500,000 plus 10% of the portion above that. Homes priced at $1.5 million or more need at least 20% down.

Who qualifies as a first-time home buyer?

For the federal programs, generally anyone who has not lived in a home owned by them or their spouse or common-law partner in the current year or the previous four years. For BC's property transfer tax exemption, you must never have owned a principal residence anywhere in the world.

Your next step: get pre-approved so you know your budget, then browse my current listings.

This article is general information, not financial, tax or legal advice. Program rules can change, so confirm the details with your lender, accountant or lawyer, and see the Province of BC's page on the First Time Home Buyers' Program.