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Posted On Oct 06, 2026

By: Kourosh Rahmanian

Information Needed for First-Time Home Buyers in British Columbia

Buying your first home can be overwhelming when you start looking at down payments, closing costs, and mortgage products. British Columbia offers programs and tools to help Canadians buy their first home, including the First Time Home Buyer’s Program, the First Home Savings Account (FHSA), and the Home Buyer’s Plan (HBP).

First Time Home Buyers Program

The First Time Home Buyers Program provides eligible buyers with a partial or full exemption from the property transfer tax when purchasing a first home. If one or more buyers qualify for the exemption but not all, the qualifying person’s share can be exempt.

To qualify for the program, you must:

  • Be a Canadian citizen or permanent resident.
  • Have lived in British Columbia for at least a year before the property is registered or have filed at least 2 income tax returns as a British Columbia resident in the last 6 tax years.
  • Have never had a registered interest in a residence that was your principal residence anywhere in the world.
  • Never received a first-time home buyers’ exemption or refund.

And the property must:

  • Be used only as a principal residence.
  • Have a market value of $835,000 or less.
  • Be 1.24 acres (0.5 hectares) or smaller.
  • Only residential improvements

If all conditions are met, the property transfer tax exemption applies to the first $500,000 of the purchase price.

Do you qualify for a Partial Exemption:

  • Have a market value greater than $835,000, but less than $860,000
  • Is larger than 1.24 acres (0.5 hectares) and/or
  • has another building on the property that is not the principal residence

The Home Buyer’s Plan (HBP)

The Home Buyers’ Plan (HBP) allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a home for yourself or a specific disabled person, with a current withdrawal limit of $60,000.

When using the Home Buyers Plan, you have up to 15 years to repay the withdrawn amount to your RRSP, pooled registered pension plan (PRPP), or specified pension plan (SPP). You can repay the full amount at any time.

You can withdraw amounts from your RRSP under the HBP and make a qualifying withdrawal from your first-time home savings account (FHSA) for the same qualifying home, if you meet all conditions at the time of each withdrawal.

The HBP temporary relief for repayment has been extended for individuals who make their first HBP withdrawal between January 1, 2026 and December 31, 2028. The 15-year repayment period now starts in the fifth year after the first withdrawal, rather than the second year. For example, if you made your first HBP withdrawal in 2026, your first repayment would be in 2031.

First Time Home Savings Account (FHSA)

The First Home Savings Account (FHSA) is a registered plan that lets first-time home buyers save tax-free to buy or build a qualifying home, within limits.

Qualifications:

  • At least 18 years old
  • 71 years old or younger as of December 31 of the year you open the FHSA.
  • You are a Canadian resident.
  • You have not lived in a qualifying home, or what would be a qualifying home if located in Canada, as the principal residence that you owned or jointly owned in the previous 4 calendar years; this also applies to your spouse.

How to open an FHSA

  1. Contact your issuer (bank, credit union, trust or insurance company), and you may open more than one FHSA.
  2. Provide the issuer with the required information they need to register your FHSA.
  • Social insurance number
  • Date of birth
  • Any supporting documents requested

Types of FHSA’s

Depositary FHSA

  • An account (with a financial institution) that holds money, term deposits or guaranteed investment certificates (GICs)

Trustee FHSA

  • A trust with the trust company as trustee that holds qualified investments such as money, term deposits, GICs, government and corporate bonds, mutual funds, and securities listed on a designated stock exchange.

Insured FHSA

  • An annuity contract (with licensed provider)

Self-directed FHSA

  • Allows you to set up an FHSA where you can build and manage your investment portfolio by buying and selling qualified investments.

Getting Preapproved for a mortgage

A mortgage pre-approval allows you to:

  • Know the maximum mortgage amount you are qualified for
  • Have a good idea of what mortgage payments will be
  • Lock in an interest rate for up to 130 days, depending on the lender.

What to Consider during the pre-approval process:

The amount you are pre-approved for is the maximum you may get for a mortgage; it doesn’t guarantee that you will get a mortgage for that amount. The final approved mortgage amount will depend on the property value and your down payment.

Common First-Time Homebuyer Mistakes

  • Shopping for homes before getting a pre-approval
  • Using all your savings for a down payment
  • Taking on new debt obligations before closing
  • Not considering closing, moving and ongoing maintenance costs.

Buying your first home in British Columbia can feel overwhelming, but several programs can make the process more affordable and easier to understand. The First Time Home Buyers’ Program, Home Buyers’ Plan (HBP), and First Home Savings Account (FHSA) can reduce financial pressure and help you prepare to buy your first home.

 

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