First-Time Home Buyer Incentives in BC: How to Save Money When Buying Your First Home in 2026
Buying your first home is an exciting milestone, but it can also feel overwhelming, especially with rising property prices and the costs associated with purchasing a home. The good news is that first-time home buyers in British Columbia (BC) may qualify for several government programs, tax savings and financial incentives that can make homeownership more affordable.
Whether you are looking to buy a condo, townhouse or detached house in Surrey, Abbotsford or anywhere else in BC, understanding these incentives can help you save money and plan your purchase with confidence.
Here are some important programs every first-time home buyer should know about.
1. BC First-Time Home Buyers’ Property Transfer Tax Exemption
One of the most valuable incentives for eligible first-time buyers in BC is the First-Time Home Buyers’ Program.
When purchasing a property in British Columbia, buyers generally pay Property Transfer Tax (PTT), which can add thousands of dollars to the purchase cost. Eligible first-time buyers may receive a full or partial exemption.
How much can you save?
For eligible properties valued at $835,000 or less, the program generally exempts the first $500,000 of the property's fair market value from property transfer tax. The exemption phases out for properties valued between $835,000 and $860,000.
To qualify, buyers generally must:
Be Canadian citizens or permanent residents.
Have lived in BC for at least one year immediately before registration, or meet the applicable tax-filing requirement.
Never have owned a registered interest in a property that was their principal residence anywhere in the world.
Have never received this exemption or refund before.
Purchase an eligible property intended to be their principal residence.
Additional property and occupancy requirements apply.
For example, if you purchase an eligible first home for $700,000, you could save approximately $8,000 in property transfer tax compared with paying the full tax, subject to your eligibility.
Learn more: BC First-Time Home Buyers’ Program
2. First Home Savings Account (FHSA)
The First Home Savings Account is a federal program designed to help Canadians save for their first home.
It combines features of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA).
Key benefits include:
Contributions may be tax-deductible.
Eligible withdrawals used to purchase a qualifying first home are tax-free.
You can contribute up to $8,000 per year.
The lifetime contribution limit is $40,000.
Unused annual contribution room can generally carry forward, subject to program rules.
For example, if you contribute $8,000 to your FHSA, that contribution may reduce your taxable income for the year. Your actual tax savings will depend on your income and tax situation.
Opening an FHSA early may help you build your down payment while taking advantage of its tax benefits.
Learn more: Canada Revenue Agency — First Home Savings Account
3. RRSP Home Buyers’ Plan (HBP)
If you have money saved in a Registered Retirement Savings Plan (RRSP), the Home Buyers’ Plan may allow you to use some of those funds toward your first home.
Eligible buyers can withdraw up to $60,000 per person from their RRSP under the program, subject to its conditions.
For eligible couples, this could mean accessing up to $120,000 combined if both qualify and have sufficient RRSP funds.
The money must generally be repaid to your RRSP over a period of up to 15 years. Special repayment rules may apply to withdrawals made in certain years.
This program can help buyers who have retirement savings but need additional funds for a down payment.
Learn more: CRA — Home Buyers’ Plan
4. Federal First-Time Home Buyers’ GST/HST Rebate on New Homes
First-time buyers purchasing a newly built home may qualify for a federal GST/HST rebate.
For eligible purchases, the federal program introduced in 2025 can provide a rebate of up to $50,000, potentially eliminating the 5% federal GST on qualifying new homes priced at $1 million or less. The rebate phases out for eligible homes priced between $1 million and $1.5 million.
The rules include requirements concerning the buyer's first-time home buyer status, purchase agreement date, construction timeline and intended use of the home as a principal residence.
This incentive is particularly worth investigating if you are considering a newly built condo, townhouse or detached home.
Important: Not every new home purchase qualifies, and existing homes generally do not qualify for this first-time buyer rebate. Check the official eligibility rules before relying on the rebate in your budget.
Learn more: CRA — First-Time Home Buyers’ GST/HST Rebate
5. BC Newly Built Home Property Transfer Tax Exemption
If you are planning to purchase a newly constructed home, you may qualify for BC’s separate Newly Built Home Exemption from property transfer tax.
This program has different eligibility rules from the First-Time Home Buyers’ Program and may benefit buyers who do not qualify for the first-time buyer exemption.
The general full-exemption threshold for qualifying newly built homes is a fair market value of $1.1 million, with a partial exemption potentially available above that amount up to $1.15 million.
Eligibility depends on factors such as the property's use, type, value and occupancy requirements.
If you are buying a newly built home, ask your real estate professional and legal professional to compare both property transfer tax exemptions to determine which program, if any, applies to your purchase.
Learn more: BC Government — Property Transfer Tax Exemptions
6. Federal Home Buyers’ Amount
First-time buyers may also qualify for the federal Home Buyers’ Amount, a non-refundable income tax credit.
For the 2025 tax year, eligible buyers can claim up to $10,000 for a qualifying home purchase. At the standard 15% federal credit rate, this can reduce federal income tax by up to $1,500.
The credit is claimed on your income tax return, subject to the eligibility rules. If you have no federal income tax payable, you may not receive the full benefit because this is a non-refundable credit.
Check the applicable rules and tax-year requirements when preparing your return.
Learn more: CRA — Home Buyers’ Amount
7. Mortgage Default Insurance and Down Payment Options
First-time buyers do not necessarily need a 20% down payment to purchase a home.
Depending on the property's price and the lender's requirements, eligible buyers may be able to obtain an insured mortgage with a smaller down payment.
For homes priced at $500,000 or less, the minimum down payment is generally 5%. For the portion of the price above $500,000 and below $1.5 million, the minimum is generally 5% on the first $500,000 and 10% on the remainder. Properties priced at $1.5 million or more generally require at least 20% down.
Mortgage default insurance is generally required when the down payment is less than 20%, subject to applicable rules and exceptions. The insurance protects the lender, not the buyer, and its cost can increase your borrowing expenses.
A mortgage professional can help you compare your down payment options, insurance costs, interest rates and monthly payments before you make an offer.
How Can First-Time Buyers Combine These Incentives?
Depending on your circumstances, you may be able to use more than one program when purchasing your first home.
For example, an eligible buyer purchasing a qualifying resale property might combine FHSA savings, an RRSP Home Buyers’ Plan withdrawal, the BC First-Time Home Buyers’ Property Transfer Tax Exemption and the federal Home Buyers’ Amount.
A buyer purchasing a qualifying newly built home may also be eligible for the federal GST/HST rebate or BC’s Newly Built Home Exemption.
However, eligibility rules differ between programs, and not every incentive can be claimed by every buyer. Some programs also have specific purchase dates, occupancy conditions and application requirements.
Final Thoughts: Make Your First Home Purchase More Affordable
Buying your first home in British Columbia does not have to be as financially intimidating as it first appears. By learning about the available government programs, planning your down payment and understanding the costs involved, you can make a more informed decision.
Before purchasing, speak with a qualified mortgage professional, accountant or legal professional to confirm which incentives apply to your situation. A knowledgeable real estate professional can also help you explore suitable properties, understand local market conditions and plan your next steps.
Your first home could be closer than you think. Start by understanding your options, getting prepared financially and exploring the opportunities available to you in BC.
Disclaimer: This article is for general informational purposes only and is not legal, tax, mortgage or financial advice. Government programs and eligibility requirements may change. Confirm current rules with the relevant government authority and your professional advisers before making a purchase.
