From saving for a down payment to applying for government incentives, I’ve created this guide for you to break down what you need to get started as a first-time home buyer in British Columbia.
To qualify for most first-time buyer programs in British Columbia, you must:
Note: some programs define “first-time” differently, be sure to check the fine print for individual program rules or reach out and I can lend a hand!
In British Columbia (and across Canada), your minimum down payment ultimately depends on the price of the home itself.
Purchasing a home can feel quite difficult in today’s market, but thankfully, there are several programs out there catered to first-time home buyers, making the process feel a lot more feasible. There is no direct ‘grant’ for first‑time buyers in BC, but the province offers a property transfer tax exemption on homes up to $835,000 (for purchases registered after April1, 2024).
This relatively new program was introduced in 2023. The FHSA lets you save up to $8,000 per year (up to a total of $40,000) tax-free. Contributions to your FHSA are also tax-deductible, and withdrawals are tax-free when used for a home purchase.
This means you can reduce your income tax directly by contributing to the account, helping you save even more each year. When you're ready to buy your first home, you can then withdraw the funds (plus any investment growth) without paying tax as long as the money is used for a home purchase (subject to the qualifications listed in “Who Qualifies as a First-Time Home Buyer in BC”).
The HBP is a government program that helps first-time homebuyers access their own savings to purchase a home. Here's how it works:
When purchasing a home in British Columbia, you’re typically required to pay what’s called a Property Transfer Tax (PTT) at the time of purchase. This tax can add thousands of dollars to your closing costs. That being said, if you’re a first-time home buyer in BC, you may qualify for a full or partial exemption.
Full Exemption: You won’t have to pay any PTT if all the following apply;
Partial Exemption:
If the home is priced between $500,001 and $525,000, you may still qualify for a partial exemption. This reduces the amount of tax you pay rather than entirely eliminating it. So the higher the purchase price within the range, the smaller the overall exemption.
How much is PTT normally? The standard PTT in BC is:
For example, a home that is priced at $500,000 - the PTT would normally be $8,000. This makes the exemption a significant savings for first-time home buyers.
As a first-time homebuyer in British Columbia, it’s wise to use all of the resources you can. So the best move would be to take advantage of all three programs if you’re eligible. Combining the tax-deductible FHSA, the RRSP Home Buyer’s Plan, and the BC Property Transfer Tax exemption can significantly reduce your upfront costs and long-term taxes.
In fact, these programs are actually designed to work together, helping you save more, pay less, and making home ownership more achievable. Always consult a mortgage professional to ensure you’re maximizing each benefit based on your situation. I’m always happy to chat, reach out using my contact form, and I’ll answer your questions at no cost!
You’ve saved for your down payment and may have already secured financing - but don’t forget about closing costs. These extra expenses come with finalizing your home purchase and are one-time fees that are due on or before the day you take possession of your new home, and they can add up quickly.
As a word of advice, even if you qualify for all the aforementioned programs, you should still budget about 1.5% to 4% of the home’s price for these required but necessary closing costs on completion day.
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Before you fall in love with your dream home, make sure you know exactly what you can afford. Getting pre-approved for a mortgage is one of the smartest first steps in the homebuying journey.
Here’s why it matters:
Pro Tip: Don’t just settle for the first rate you see. Compare offers from different lenders, or work with a licensed mortgage professional who can shop around for you. I have access to rates from 90+ lenders, including banks, credit unions, and alternative institutions. Even a small difference in interest rate can save you thousands over the life of your mortgage.
British Columbia doesn’t offer a cash grant for first‑time buyers, but it does provide a property transfer tax (PTT) exemption. If you’re purchasing your first home, you may be eligible for a full or partial exemption on homes valued up to $835,000 (for registrations after April 1, 2024). To qualify, you must be a Canadian citizen or permanent resident, have never owned a principal residence anywhere in the world, intend to live in the property as your primary residence, and meet certain size and price limits. Properties above $835,000 may still receive a reduced exemption up to $860,000.
The federal Home Buyers’ Plan allows first‑time buyers to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. This withdrawal is tax‑free at the time you take it out, but you must repay the amount back into your RRSP over a 15‑year period to avoid it being added to your taxable income. The CRA notes that you can use the HBP alongside your First Home Savings Account (FHSA) contributions, provided you meet the conditions for both programs.
Yes. Many first‑time buyers in BC leverage all three programs together: save up to $8,000 per year (to a maximum of $40,000) in a First Home Savings Account, which is tax‑deductible and grows tax‑free; withdraw from your RRSP under the HBP; and claim the BC property transfer tax exemption. While there’s no direct provincial “grant,” this combination can significantly reduce your upfront costs and taxes.
Your minimum down payment depends on the purchase price. You can put 5 % down on the first $500,000, then 10 % on the portion between $500,000 and $999,999. Homes priced at $1million or more require a 20 % down payment. Remember, putting down less than 20% makes your mortgage high‑ratio, which means it must be insured through a provider like CMHC.
In addition to your down payment, expect to spend 1.5–4 % of the home’s price on closing costs. These one‑time expenses can include legal fees, title insurance, appraisal fees, property transfer tax (unless exempted) and adjustments for property taxes and utilities. Having a cushion for these costs will prevent surprises on closing day.
