BC First-time home buyer: Guide and Incentives

Buying your first home can feel overwhelming. With high prices, limited options, and rules around government and provincial support, many people do not know where to start. A first-time home buyer BC must sort through different programs, understand what’s required, and make choices that fit both their budget and lifestyle. Knowing what to expect early on makes the process much easier and helps you move forward with confidence. This article from BestMO provides you with all the necessary information for this topic.

Who is qualified as a first-time home buyer in BC?

To qualify as a first-time home buyer in BC, you need to meet requirements set by both the provincial and federal governments. The general eligibility criteria include:

• Being a Canadian citizen or permanent resident over the age of 18
• Have not lived in a home owned by you or your spouse/common-law partner in the current year or the previous four years.
• Minimum age of 18 years at the time of withdrawal from registered plans
• Intend to occupy the home as a primary residence within one year

Special provincial requirements

While permanent residents are eligible immediately for most programs, recent immigrants must first establish BC residency. The 12-month residency requirement can be waived if you have filed 2 years of BC tax returns in the last 6 tax years, which is helpful for those who lived here temporarily before gaining permanent status.

If you are buying with a partner, both purchasers should qualify as first-time buyers. When only one person qualifies, only their percentage of ownership receives the tax exemptions. For example, if you own 60% and your partner (who previously owned property) owns 40%, only your 60% portion gets the tax break.

What are first-time home buyer programs in BC?

British Columbia has specific programs designed to make homeownership more affordable. Each program targets different costs associated with buying a home, from upfront taxes to ongoing property expenses.

BC Land Transfer Tax Exemption for First-Time Buyers

The most valuable provincial benefit eliminates or reduces the BC property transfer tax on your first home. This tax normally costs 1% on the first $200,000 and 2% on amounts between $200,000 and $2 million.

The BC transfer tax exemption program offers full exemption on homes valued up to $835,000. Homes priced between $835,000 and $860,000 receive partial exemptions. The savings decrease as the price approaches $860,000. It means a home worth $859,000 might only save you $320.

Your savings depend entirely on the purchase price of your home. Once you exceed $835,000, every additional thousand dollars reduces your exemption.

BC Newly Built Home Exemption

Buying new construction opens another opportunity for savings. You can take the full exemption for homes valued up to $1.1 million. The partial exemption is available for properties with fair market values of $1.15 million. This separate program specifically helps buyers who purchase directly from developers or build custom homes.

You cannot combine this first-time home buyer exemption BC with the standard first-time buyer exemption. Since the newly built exemption offers higher savings and applies to more expensive properties, it’s usually the better choice for new construction purchases.

Qualification requirements:

• The transfer of the property is registered after February 16, 2016, and this is the first time the completed home is being registered at the Land Title Office.
• The property (land and building together) has a fair market value of $1,100,000 or less.
• The property is 0.5 hectares (1.24 acres) or smaller.

You may still qualify for a partial exemption if:

• The fair market value is between $1,100,000 and $1,150,000.
• The property is larger than 0.5 hectares.
• There is another building on the property in addition to the main residence.

For more information on tax exemptions in BC, including common programs and detailed qualification requirements, read here: BC Property Transfer Tax Exemptions.

BC Home Owner Grants

Once you own your home (not just first-time home buyers), the BC Home Owner Grant reduces your annual property taxes. Homeowners outside Metro Vancouver, the Fraser Valley, and Victoria receive $770 off their property tax bill each year. Those in the three major urban areas receive $570 annually.

Over 30 years of homeownership, these grants add up to significant savings. The grant applies automatically when you pay your property taxes, provided your home’s assessed value stays below $2,175,000. (Source)

To qualify, the assessed or partitioned value of your property is within the annual grant threshold set by the province. If you are in the process of buying or selling your home, you may need to meet additional requirements to receive the grant.

Federal support programs for first-time buyers in BC

The federal government offers additional programs to assist with down payment savings:

The First Home Savings Account (FHSA) lets you contribute up to $8,000 annually ($40,000 lifetime) toward your down payment. Contributions reduce your income tax, and withdrawals for home purchases are tax-free.

The Home Buyers’ Plan (HBP) allows borrowing up to $60,000 from your retirement savings without tax penalties. You must repay this amount over 15 years, but you get a five-year grace period before payments begin.

New construction buyers can claim the GST New Housing Rebate, recovering up to $6,300 of the GST paid on homes under $450,000. The rebate decreases for more expensive homes and disappears entirely above $550,000.

The First-Time Home Buyers’ Tax Credit provides up to $1,500 in tax credits at tax time.

BC first-time home buyer down payment assistance

Moreover, British Columbia follows the federal first-time home buyer down payment rules:

• Homes under $500,000 require 5% down payment
• First time home buyer BC over $500,000 to $1.5 million needs 5% on the first $500,000; 10% on the remainder
• Homes over $1.5 million require a 20% down payment

When you get a high-ratio mortgage, you will pay mortgage default insurance premiums. However, first-time buyers can now choose 30-year amortization periods on insured mortgages, lowering monthly payments by spreading costs over five extra years.

Essential Steps for Successful First-Time Home Buyers in BC

Successfully claiming your first-time buyer benefits requires careful planning and attention to detail. Here are 5 steps to do this optimally: 

Step 1: Get financial preparation in 6-12 months 

Start by confirming your eligibility for all programs. Request your credit report and fix any errors that might affect your mortgage approval. Open an FHSA if you have not already. 

You also need to gather the required documentation: 

• proof of Canadian citizenship or permanent residency, 
• evidence of BC residency, 
• recent tax returns, 
• employment letters, 
• pay stubs. 

Get pre-approved for a mortgage to understand your true buying power. It reveals how much you can borrow and locks in an interest rate for up to 120 days. 

Step 2: Research for the right property

Work with a realtor who understands first-time buyer programs. Experienced agents know which properties qualify and can spot potential issues before you make an offer. They will ensure that your offer includes appropriate conditions that protect your interests. However, if you do not have enough budget, you can also buy a home without a realtor.

Step 3: Make an offer for first-time home buyer BC

Include conditions in your offer that protect your first-time home buyer BC benefits. Standard subjects include financing, home inspection, and review of strata documents (for condos). Add a specific condition stating that the purchase depends on qualifying for the property transfer tax exemption.

Your realtor should note your status as a first-time buyer in the contract. This alerts the seller’s agent and helps your lawyer prepare the correct paperwork. Some sellers prefer first-time buyers because they know government programs strengthen your financial position.

Step 4: Completing the purchase

Your lawyer or notary handles the property transfer tax exemption application as part of the standard closing process. Do not assume they know you are a first-time buyer.

For the GST rebate on new construction, you apply through the builder, who credits the rebate against your purchase price. If buying directly from an owner, you will submit the rebate application yourself after closing. Keep all receipts and documentation.

Step 5: Understand the post-purchase requirements

You must move into your new home within 92 days of the closing date to get qualified for the BC newly built home exemption program. Failing to establish principal residency can result in paying back the entire tax exemption plus penalties. Keep utility bills and change your driver’s license address as proof.

Maintain the property as your principal residence for at least one year. Exceptions exist for job relocations, family emergencies, or relationship breakdowns, but you will need documentation explaining why you moved out early.

Apply for the Home Owner Grant when you receive your first property tax assessment. Many municipalities include the application with your tax notice. The grant renews automatically each year as long as you remain eligible.

Timing and market conditions for a BC first-time home buyer

The BC real estate market in 2025 presents both opportunities and challenges for first-time buyers:

• Mortgage rates and affordability: As of 2025, interest rates in BC have stabilized. Plus, the federal government’s option for a 30-year amortization lets you stretch payments out to lower your monthly burden even more.
• Housing supply breakdown: Homes for sale are still below what’s considered normal across the province. Builders are focusing on condos and townhouses. It is ideal for first-time buyers because they are less expensive and eligible under special programs.
• Strategic timing: There is no perfect time to buy. Instead, focus on your situation: steady employment, enough saved for a down payment, and a community you want to live in. When those align, first-time buyer savings can be significant.

Discover first-time home buyer guides for other provinces in Canada:

• First-Time Home Buyer Ontario
• First-Time Home Buyer Alberta
• First-Time Home Buyer Saskatchewan
• First-Time Home Buyer PEI
• First-Time Home Buyer Nova Scotia
• First-Time Home Buyer Manitoba
• First-Time Home Buyer Newfoundland and Labrador
• First-Time Home Buyer Quebec
• First-Time Home Buyer New Brunswick
• First-Time Home Buyer Nunavut

FAQs about first-time home buyer BC

The bottom line

As a first-time home buyer in BC, keeping your goals, sticking to your budget, and getting advice from trusted professionals can help you move from planning to owning your first home. With good preparation and a clear understanding of what to expect, stepping into the housing market can be both possible and rewarding.

Article source

• First time home buyers’ program, Government of British Columbia