First-Time Home Buyer Programs in British Columbia (2025): Grants, Rebates, FHSA

For many British Columbians, buying a first home in 2025 is both exciting and overwhelming. Alongside saving for a down payment, you need to plan for closing costs, property transfer taxes, and long-term affordability.

The good news? British Columbia and the federal government offer several programs designed to help first-time home buyers (FTHB). These include tax rebates, grants, and new savings accounts that can make homeownership more achievable.

This guide explains the key programs available in BC in 2025: the Property Transfer Tax (PTT) rebate, the GST/HST new housing rebate, the Home Buyers’ Plan (HBP), the First Home Savings Account (FHSA), and more.

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BC Property Transfer Tax (PTT) and First-Time Buyer Exemption

One of the largest closing costs in BC is the Property Transfer Tax (PTT). It applies when you register ownership of a property and is calculated as:

• 1% on the first $200,000
• 2% on $200,001 – $2,000,000
• 3% on $2,000,001 – $3,000,000
• 5% above $3,000,000

Example: On a $700,000 home in Surrey, PTT = $12,000.

First-Time Buyer Exemption (2025 rules)

If you’re a first-time buyer and meet certain requirements, you may qualify for a full or partial exemption:

• Full exemption: Homes priced up to $500,000.
• Partial exemption: Sliding scale for homes between $500,000 – $525,000.
• Must be a Canadian citizen or permanent resident.
• Must live in the property as your principal residence.

This program alone can save first-time buyers up to $8,000–$10,000 in closing costs.

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Newly Built Home Exemption

If you buy a newly constructed home in BC, you may qualify for a PTT exemption on homes up to:

• $750,000 full exemption
• $750,000 – $800,000 partial exemption

This applies to:

• Newly built houses
• Newly built condos/townhomes
• Substantially renovated homes

This exemption is particularly valuable in Metro Vancouver, where many first-time buyers purchase pre-construction or new builds.

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Federal Programs That Apply in BC

a) First Home Savings Account (FHSA)

Introduced in 2023, the FHSA combines the benefits of an RRSP and TFSA.

• Contribute up to $8,000 per year ($40,000 lifetime).
• Contributions are tax-deductible (like RRSP).
• Withdrawals for a first home are tax-free (like TFSA).
• Unused room carries forward.

Example: Contributing $8,000 could reduce your taxable income by the same amount, saving you $2,000+ in taxes while growing your down payment tax-free.

b) Home Buyers’ Plan (HBP)

• Withdraw up to $35,000 from your RRSP for a down payment.
• Couples can combine for $70,000.
• Must repay within 15 years (or pay tax on missed repayments).

Many buyers use both the FHSA and HBP to maximize savings.

c) GST/HST New Housing Rebate

• Refunds part of the GST/HST on newly built homes.
• Applies if the home will be your primary residence.
• Can save thousands, especially on pre-construction condos.

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Other Support Programs in BC

• First-Time Home Buyer Tax Credit (Federal): Non-refundable tax credit worth up to $1,500.
• Energy Efficiency Rebates: Some BC municipalities and utilities offer rebates if you upgrade to energy-efficient appliances or retrofits after purchase.
• Municipal Grants: Certain cities (like Vancouver) sometimes offer pilot affordability programs; check local updates.

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Real-Life Example: Emily and Raj in Burnaby

• Home Price: $520,000 condo (resale)
• PTT: $8,400 normally, but with FTHB exemption = $0
• Down Payment: $40,000 (using FHSA + HBP withdrawals)
• Rebates: $1,500 tax credit

Total savings = nearly $10,000 in taxes and credits, plus tax benefits from FHSA contributions.

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How to Maximize Benefits

1. Open an FHSA early. Even if you’re a few years away, contributions grow tax-free.
2. Stack programs. Many buyers combine FHSA, HBP, and PTT rebates.
3. Check property eligibility. Not all homes qualify (e.g., investment properties do not).
4. Work with a mortgage broker. They’ll help you structure your down payment and ensure rebates are filed correctly.

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Conclusion: First-Time Buyers Have Options

Buying your first home in British Columbia isn’t easy—especially with high property prices in Vancouver and surrounding regions. But by combining provincial exemptions with federal programs, first-time buyers can save tens of thousands of dollars in 2025.

The key is planning ahead:

• Open your FHSA and contribute regularly
• Confirm if your purchase qualifies for the PTT rebate
• Use your RRSP wisely with the HBP
• Claim every rebate and credit available

With the right mix of programs, your first home in BC is more achievable than you think.