First-Time Home Buyer Guide BC 2026

As a first-time buyer in B.C., you can put as little as 5% down on a home under $500,000, save tax-free in a First Home Savings Account (up to $40,000), borrow up to $60,000 from your RRSP through the Home Buyers’ Plan, and pay less property transfer tax on a home up to $860,000. You can also choose a 30-year amortization on an insured mortgage, and a new home may qualify for a GST rebate of up to $50,000.

This guide puts the rules in one place, in plain words, so you know what you qualify for before you start looking in Surrey, Langley or anywhere in the Lower Mainland. Figures were checked on government sources in November 2026.

The programs at a glance

Program	What you get	Who runs it
First Home Savings Account (FHSA)	Save $8,000 a year, $40,000 lifetime. Contributions are tax-deductible and a qualifying withdrawal is tax-free.	Federal (CRA)
RRSP Home Buyers’ Plan (HBP)	Withdraw up to $60,000 from your RRSPs, then pay it back over 15 years.	Federal (CRA)
Property transfer tax exemption	No tax on homes up to $500,000. Up to $8,000 off on homes up to $835,000. A smaller amount up to $860,000.	Province of B.C.
First-time home buyers’ GST rebate	Up to $50,000 back on a new home up to $1 million. Phases out to zero at $1.5 million.	Federal (CRA)
30-year amortization	Available on insured mortgages for first-time buyers, which lowers the monthly payment.	Federal rules

Step 1: Know your minimum down payment

If you put down less than 20%, you will usually need mortgage loan insurance. The minimum down payment depends on the price:

$500,000 or less: 5% of the price.
$500,000 to under $1.5 million: 5% of the first $500,000, plus 10% of the part above $500,000.
$1.5 million or more: 20% of the price. Mortgage insurance is not available at this price.

Since December 15, 2024, the insured price cap is $1.5 million (up from $1 million), and all first-time buyers can get a 30-year amortization instead of 25 years.

Step 2: Open a First Home Savings Account early

Your FHSA contributions lower your taxable income, the money grows tax-free, and you pay no tax when you take it out to buy your first home.

You can open one if you are 18 or older, live in Canada, and have not lived in a home you or your spouse owned in this calendar year or the four years before.
You get $8,000 of room in the year you open your first FHSA, and $8,000 more each year after that, up to $40,000 in total.
If you don’t use your room, up to $8,000 can carry forward to the next year. Room only starts once you open the account, so opening one early helps even with a small deposit.
If you never buy, you can generally move the money to an RRSP or RRIF on a tax-deferred basis.

To make a tax-free withdrawal, you need a written agreement to buy or build the home, and the purchase must close before October 1 of the next year. You must plan to move in within one year. Your FHSA provider will ask for Form RC725.

Step 3: Use the RRSP Home Buyers’ Plan if you have RRSP savings

The Home Buyers’ Plan lets you take up to $60,000 out of your own RRSPs, tax-free, to buy your first home. You pay it back over 15 years. Two first-time buyers buying together can each use it.

You must have a written agreement to buy or build the home. A mortgage pre-approval does not count.
For a first withdrawal made from January 1, 2026 to December 31, 2028, repayments start in the fifth year after the withdrawal. For example, a 2026 withdrawal is first repaid in 2031.
RRSP contributions made in the 89 days before a withdrawal may not be tax-deductible, so plan ahead.

You can use the FHSA and the Home Buyers’ Plan for the same home, as long as you meet the rules for each one when you withdraw.

Step 4: Check the B.C. property transfer tax exemption

Property transfer tax is often the largest closing cost in the Lower Mainland. For homes registered on or after April 1, 2024, first-time buyers pay no tax on a home worth $500,000 or less. From $500,000 to $835,000 you save up to $8,000. Between $835,000 and $860,000 the exemption gets smaller and ends at $860,000.

To qualify, you must:

Be a Canadian citizen or permanent resident.
Have lived in B.C. for 12 months in a row right before your purchase is registered, or have filed at least 2 B.C. income tax returns in the last 6 years.
Never have owned a principal residence anywhere in the world, and never have used this exemption before.
Buy a home of 0.5 hectares or less, move in within 92 days and live there until at least the first anniversary.

Your lawyer or notary claims the exemption for you on the property transfer tax return. Work out your tax with my BC property transfer tax calculator.

Step 5: If you are buying new, ask about the GST rebate

The federal first-time home buyers’ GST rebate can give you back up to $50,000 of GST on a newly built home. You get the full rebate on homes up to $1 million. Between $1 million and $1.5 million it drops in a straight line. For example, a $1.25 million home gets 50%, or up to $25,000. Homes of $1.5 million or more get nothing.

For a home bought from a builder, the purchase agreement must generally be signed on or after March 20, 2025 and before 2031 (the rebate became law on March 12, 2026). Construction must start before 2031, and the home must be substantially completed before 2036. You must be 18 or older, a Canadian citizen or permanent resident, and meet the same four-year first-time buyer test. One buyer must be the first person to live in the home, as their main home. It can be claimed once in a lifetime.

Step 6: Get pre-approved and know the stress test

Lenders test whether you could afford your payment at a higher rate. For uninsured mortgages at federally regulated lenders, OSFI sets that rate at the greater of your contract rate plus 2%, or 5.25%. A pre-approval shows your real price range. Get a quick estimate with my home affordability and stress test calculator.

Step 7: Budget for closing costs

Your down payment is not the only cash you need. Plan for any property transfer tax, legal or notary fees, an inspection, home insurance, and property tax and strata fee adjustments. GST may apply on a new home.

Illustrative example only

A first-time buyer who qualifies for every program buys a resale condo for $700,000. The minimum down payment is $45,000 (5% of $500,000 is $25,000, plus 10% of $200,000 is $20,000). The regular property transfer tax would be $12,000. With the $8,000 first-time buyer exemption, the tax is $4,000. The down payment could come from an FHSA, the Home Buyers’ Plan, savings, or a mix. Your numbers will depend on your price, lender and situation.

Step 8: From offer to keys

Make an offer with subjects, such as financing and inspection, that protect you.
Remove subjects once financing and inspection check out. Your deposit is usually due then.
See your lawyer or notary to sign documents and claim the transfer tax exemption.
Completion and possession: money and title change hands, then you get your keys.

Ready to start?

If you are renting and wondering whether buying is possible, I’m happy to go through your numbers and the programs you qualify for, with no pressure. Call or text me at 604-785-5555 or send me a message.

Muzaffar Manghat, REALTOR®, Sutton Premier Realty

Sources

This page is general information, not financial, mortgage, tax or legal advice. Information is believed reliable but not guaranteed. This is not intended to solicit buyers or sellers currently under contract with a brokerage.

First-Time Home Buyer Guide for B.C.