There are several federal, provincial and municipal programs, rebates, exemptions and resources for first time home buyers in Canada, and specifically in BC.

All designed with the purpose of helping new buyers get into the real estate market.

It’s worthwhile seeing if your specific real estate situation can fit into these programs and resources so you can benefit from possible tax exemptions and other abilities like using your RRSP contributions for the first home purchase.

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Who qualifies as a first-time home buyer?

Each program or resource will have a qualification that must be made in order to receive that incentive. For instance, the federal first time home buyers program allows non-permanent residents with authorization to work to potentially qualify, while the British Columbia First Time Home Buyers Program for tax rebates will not.

Make sure to check on the resources definition of a first time home buyer and the requirements to see if you can potentially qualify.

Programs for First Time Home Buyers in Greater Vancouver

Federal First Time Home Buyers Incentive

The federal government of Canada has set up an incentive program for first time home buyers across Canada that offers 5% to 10% of the home purchase price, that will be used towards a down payment of the property.

Additionally, if you’re looking to purchase a home in the Toronto, Vancouver or Victoria Census Metropolitan areas, there is an increased annual income amount of $150,000, instead of the usual $120,000. More details directly from the government website are available below:

“First time home buyers purchasing a home in the Toronto, Vancouver, or Victoria Census Metropolitan Areas are now eligible for an increased Qualifying Annual Income of $150,000 instead of $120,000, and an increased total borrowing amount of 4.5 instead of 4.0 times their qualifying income.”

Here is the current outline of criteria to receive this incentive:

  • Canadian citizen, permanent resident or non-permanent resident authorised to work in Canada.
  • Minimum down payment requirements can be met
  • You or your partner are a first-time homebuyer
  • Total borrowing costs do not exceed 4 times your qualifying income OR 4.5 times in the special areas of Toronto, Vancouver and Victoria metropolitan areas.

Make sure to review the specifics on the government program webpage as there are different details and incentive amounts for the new construction, existing homes and manufactured/mobile homes.

Province of BC First Time Home Buyer Property Tax Exemption

For residents in British Columbia, you could be eligible for the BC property transfer tax exemption, available to qualified first time home buyers.

The new exemption that starts on April 1, 2024, allows the purchaser to be exempt from property transfer tax on the first $500,000 of the purchase price, which will apply for homes with a fair market value up to $835,000.

RRSP Home Buyers’ Plan

The RRSP Home Buyers Plan is another federal government program established to help first time home buyers in Canada by allowing them to utilise RRSP contributions for a first-time home purchase.

There are favourable repayment plans in place for making sure any monies withdrawn through this program are re-paid to the RRSP.

Money you’re Allowed to Withdraw

If you have savings in an RRSP, new home buyers can withdraw up to $35,000 without being penalised with taxes, allowing you to use this money to contribute to buying a home, usually in the form of a down payment.

Also, the amount withdrawn must have been in the RRSP at least 90 days before the withdrawal date.

Repayment Period

Currently, the repayment period is 15 years from the date you withdraw the funds from the RRSP for the purpose of the Home Buyers Plan.

How to repay

When you make the withdrawal for the Home Buyers Plan, the CRA will send you a detailed form of the repayment plan for the following year. You’re also allowed to repay the full amount at any time.

More information from the Government of Canada is here.

GST/HST New Housing Rebate

When buying a new property in BC, you’ll be subject to various taxes on top of the sales prices of the home. The rebate allows you to get back a portion of that sales tax, GST or HST tax, paid during the purchase of the property. GST sales tax on homes in BC is currently at 5%.

The GST Portion is 36% of the GST tax amount up to a maximum of $6,300, and disappears entirely once the home price exceeds $450,000.

If you’re a first time home buyer that has bought a certain property under the criteria outlined below, you may be eligible for the GST/HST Housing Rebate.

The criteria is as follows:

  • The house being purchased is substantially new or had significant renovations that include a major addition to the property.
  • It’s been built by someone, a new build.
  • Converted a non-residential property into a home to live
  • Bought share in a co-op (cooperative)

While this is not an exclusive benefit for first time home buyers, it’s something to consider in your real estate journey as a way to save.

More information on the Canadian Government website is here.

First-Time Home Savings Account

Navigating the path to homeownership can be complex and financially challenging, especially for first-time homebuyers. Recognizing this, the First-Time Home Savings Account (FHSA) was created to help first-time home buyers save for their home purchase, gain a tax benefit, and avoid having to repay the amount like the RRSP Home Buyers Plan.

First time home buyers can open an account and contribute up to $8,000 per year, with a lifetime contribution amount of $40,000 per individual.

Learn more about the FHSA here.

What Next?

If you need help navigating this landscape of all these first time home buyers incentives, programs and resources, we’re here to help.

Our real estate experts at Metro Vancouver Life are here for first time home buyers. We’ll work with your specific financial and personal needs.

No matter where you’re looking to live in Metro Vancouver, we can help you get the best resources available to purchase your first home. Learn more about how we can help you buy your first home in Metro Vancouver.