Buying a first home in BC comes with more financial moving parts than most buyers expect. Here's a plain-language summary of the main programs currently available — always confirm current details with your mortgage broker or lawyer before relying on them.
What Is BC's First-Time Home Buyers' Property Transfer Tax Exemption?
Eligible first-time buyers can receive a full exemption from BC's Property Transfer Tax on homes valued up to $835,000, with a partial exemption phasing out up to $860,000. To qualify, you generally need to be a Canadian citizen or permanent resident, have lived in BC or filed BC tax returns for a minimum period, and never have owned a principal residence anywhere in the world.
What Is the First Home Savings Account (FHSA)?
The FHSA lets eligible Canadians contribute up to $8,000 per year, to a $40,000 lifetime maximum, toward a first home. Contributions are tax-deductible, and qualifying withdrawals are tax-free — combining features of an RRSP and a TFSA.
What Is the RRSP Home Buyers' Plan (HBP)?
The Home Buyers' Plan allows eligible first-time buyers to withdraw funds from an RRSP tax-free toward a home purchase, repayable back into the RRSP over 15 years. The FHSA and HBP can generally be used together on the same purchase.
When Do You Need CMHC Mortgage Insurance?
Buyers putting down less than 20% will typically require mortgage default insurance through CMHC or a similar insurer, which is added to the mortgage rather than paid upfront.
Every buyer's situation is different, and program rules do change. Manan can help you confirm exactly what you qualify for as part of a free, no-pressure consultation.