First-time home buyer in BC: tax relief, savings plans and down payment rules

The programs at a glance

The table reads each figure from the official page named under it. The check date is 19 October 2026; the page’s own date is in each source.

Help	What the official page says
BC first time home buyers’ exemption	Up to $8,000 off property transfer tax; full to $835,000, none from $860,000
BC newly built home exemption	Tax exempt to $1,100,000, none from $1,150,000; not limited to first-time buyers
First Home Savings Account (FHSA)	$8,000 of room a year, $40,000 lifetime; contributions generally deductible
RRSP Home Buyers’ Plan	Withdraw up to $60,000; repayment starts later for a first withdrawal in 2026 to 2028
Home buyers’ amount	Up to $10,000 can be claimed for a qualifying home bought in 2025 (a non-refundable credit)
First-time home buyers’ GST/HST rebate	New homes only: up to 100% of the GST, maximum $50,000, to $1 million, none from $1.5 million

Work out your own property transfer tax with the calculator, and see what else you pay in closing costs.

Down payment and mortgage insurance

According to the Financial Consumer Agency of Canada, the minimum down payment is 5% of the first $500,000 and 10% of the part above that, up to $1.5 million, and 20% from $1.5 million. Under 20% down usually means mortgage loan insurance. CMHC’s published premiums on the total loan are:

Loan compared with price (loan-to-value)	Premium
Up to 65%	0.60%
65.01% to 75%	1.70%
75.01% to 80%	2.40%
80.01% to 85%	2.80%
85.01% to 90%	3.10%
90.01% to 95%	4.00%

CMHC, the insurer, says the purchase price must be below $1,500,000 for its homeowner loans, so this page uses that figure. The Financial Consumer Agency of Canada page says insurance is not available at $1 million or more, which appears to be out of date because the same page’s own down payment table uses the $1.5 million cap. Confirm the limit with your lender before you rely on either.

Who counts as a first-time buyer

The definitions differ by program, which is the usual trap. The BC exemption needs you never to have owned a principal residence anywhere in the world, and to have lived in BC for a year or filed two BC resident tax returns in the last six. The federal credits generally use a test of not having lived in a home you owned in the current or four preceding years. Read each page’s own test.

Not covered here

Mortgage rates, lender choice and neighbourhood prices change often and are not on this page. See Victoria house prices when it is published, and get advice from a mortgage broker, lawyer or accountant before you commit.