It’s no secret that affordability has been one of Canadians’ top concerns in recent years when looking to purchase their first home. Fortunately, both the provincial and federal governments have developed and revised several incentives and programs specifically to help first-time homebuyers get a foot in the market and settle down in British Columbia. Let’s review the current incentives available to first-time home buyers in 2024-2025.
1. Home Buyers’ Plan (HBP)
The Home Buyers’ Plan allows first-time home buyers to pull from their RRSP savings tax-free for their down payment. Up to $60,000 can be withdrawn tax-free (as of April 16, 2024 – an increase from $35,000!) per person purchasing the house, which means that you and a partner can potentially use up to $120,000 from your RRSPs towards your down payment.
A couple things to keep in mind:
- You don’t need to withdraw the full amount to take advantage of the Home Buyers’ Plan, meaning you can leave some savings in your RRSP for retirement while still contributing to your down payment
- To keep withdrawals tax-free, they must be repaid into your RRSP within 15 years.
Learn more about the Home Buyers’ Plan on the Government of Canada’s website.
2. Property Transfer Tax (PTT) Exemption
In British Columbia, if you’re purchasing a property for $835,000 or less, first-time home buyers may be eligible for an exemption from the Property Transfer Tax (PTT). If you meet all of the requirements (a full list is available on the BC government’s website), you will be exempt from the property transfer tax on the first $500,000 of the property’s purchase price. When purchasing a home with a partner, you may still qualify for a partial exemption even if one of you has owned a home previously. Partial exemptions are also available for houses on lots larger than 0.5 hectares, multiple buildings on the same property, or for homes priced between $835,000 to $860,000.
3. BC Home Owner Grant
After purchasing a home, the BC Home Owner Grant helps reduce the amount of property tax paid each year. For many homeowners who have homes valued up to $2,150,000, the grant offers:
- Up to $770 in property tax relief for most homeowners
- Up to $1,045 for seniors, veterans, and people with disabilities
This grant applies to both detached homes and strata properties. More information can be found on the BC Government Home Owner Grant webpage.
4. BC New Housing Property Transfer Tax Exemptions
Thinking of purchasing a new build? Effective April 1, 2024, buyers of newly constructed homes up to $1,100,000 are exempt from the Property Transfer Tax, with partial reductions available for homes between $1,100,000 and $1,150,000. Find out if you qualify on the BC Government’s website.
5. First-Time Home Buyers’ Tax Credit (HBTC)
The First-Time Home Buyers’ Tax Credit allows first-time home buyers to claim a tax credit of up to $1,500 to help lessen some of the closing costs associated with purchasing a home. You can claim up to $10,000 on your personal tax return, for the purchase of a home for the tax year you purchased the property. Learn more about this credit on the Government of Canada’s website.
6. 30 Year Mortgages
In addition to the various rebates and exemptions available, first-time home buyers can also take advantage of new 30 year mortgages as of December 15, 2024. The additional 5 years to pay back a mortgage helps reduce the monthly payments for first-time home buyers, making home ownership more affordable for many Canadians. Between August and December 2024, this program is only available to first-time home buyers of new builds, however the program has expanded to include all first-time home buyers and all buyers of new builds. To qualify, at least one of the borrowers must be a first time homebuyer, and the loan must be for at least 80% of the purchase price (in other words, a down payment of 20% or less). A news release from September 2024 discusses all of the changes to this program.
7. Tax Free First Time Home Savings Account
Effective August 2023, the Tax Free First Time Home Savings Account (FTHSA) allows Canadians to contribute up to $8,000 per year (with a lifetime limit of $40,000), over the span of up to 15 years, towards a down payment on their first property. Similar to RRSPs, FTHSAs are tax deductible on annual income returns, and like a Tax Free Savings account (TFSA), withdrawals to purchase a home are non taxable. The Government of Canada’s news release from August 2023 goes into more detail about this new type of tax-free account.
8. GST Relief on Newly Built Homes
In May 2025, the federal government has launched a new GST relief program for first-time home buyers purchasing new builds. New builds will now be eligible for up to $50,000 in federal GST rebates post-purchase for homes up to $1,000,000, and a phased rebate for homes worth between $1mil and $1.5mil. Check out the Government of Canada’s news release for more information on who is eligible, and how much you can potentially save, plus read our blog post for a more in-depth discussion of this new rebate program.
Ready to Move Into Your First Home?
At Auxilium Mortgage, we specialize in helping first-time home buyers find the right mortgage for their unique situation. With access to over 50 lenders, over 100 combined years of experience, and a dedication to our clients, Auxilium Mortgage is Victoria’s trusted choice for first-time home buyers. Book your consultation today to start your search for the home of your dreams.