First-Time Home Buyer Programs in British Columbia: What You Need to Know

Buying your first home in British Columbia can feel overwhelming—especially with rising home prices and upfront costs. The good news is that several federal programs are available to help first-time home buyers reduce the financial burden and make homeownership more accessible.

Below is a clear breakdown of the key first-time home buyer programs available to buyers in BC, how they work, and when they apply.

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) allows first-time home buyers to withdraw up to $60,000 per person from their RRSP to use toward a home purchase.

Key highlights:

• Funds are withdrawn tax-free

• Repayment period is up to 15 years

• No penalties as long as repayments are made on time

• Can be combined for couples (up to $120,000 total)

This limit was increased from $35,000 to $60,000 in April 2024, making it a powerful tool for buyers in high-cost areas like Vancouver and the Lower Mainland.

First-Time Home Buyer Incentive (FTHBI)

The First-Time Home Buyer Incentive was a shared-equity program that helped reduce monthly mortgage payments by having the government share in the home’s value.

⚠️ Important update:
This program was discontinued in March 2024 and is no longer available for new purchases.

If you previously used this incentive and have questions about repayment or refinancing, it’s best to speak with the mortgage professional who arranged your original mortgage.

First-Time Home Buyer Tax Credit (HBTC)

The First-Time Home Buyer Tax Credit helps offset some of the closing costs associated with purchasing your first home.

What to know:

• Non-refundable federal tax credit

• Worth up to $1,500

• Claimed in the year you purchase your home

This credit can help cover costs such as legal fees, inspections, or land title registration.

GST New Housing Rebate (BC Buyers)

If you purchase a new or substantially renovated home, you may be eligible for the GST New Housing Rebate.

Eligibility basics:

• The home must be owner-occupied by you or an immediate family member

• The purchase price must fall within program limits

• Maximum federal rebate is up to $6,300

This rebate is especially relevant for buyers purchasing pre-construction or newly built homes in the Lower Mainland, Coquitlam, Surrey, Langley, and the Fraser Valley.

CMHC Green Home Program

The CMHC Green Home Program rewards buyers who purchase energy-efficient homes.

Program features:

• Refund of up to 25% of your mortgage insurance premium

• Requires an eligible energy efficiency rating

• Includes a free energy assessment

Other insurers, including Sagen and Canada Guaranty, also offer green mortgage incentives.

First Home Savings Account (FHSA)

The First Home Savings Account (FHSA) is one of the most powerful tools available to first-time buyers in British Columbia.

How it works:

• Save up to $40,000 total

• Contribute up to $8,000 per year

• Contributions are tax-deductible

• Withdrawals for a first home are tax-free

The FHSA combines the best features of an RRSP and TFSA and is ideal for buyers planning ahead.

Choosing the Right First-Time Buyer Programs in BC

Not every program applies to every buyer. The right combination depends on:

• Your income and tax situation

• Whether you’re buying alone or with a partner

• The type of property you’re purchasing

• Where you’re buying in British Columbia

Understanding how these programs work together can significantly reduce the cost of buying your first home.

First-Time Home Buyer Guidance in British Columbia

First-time buyer programs can be incredibly helpful—but only when used correctly.

Rima Zino Mortgages works with first-time buyers across Vancouver, Coquitlam, Surrey, Langley, the Lower Mainland, and the Fraser Valley to help them understand which programs they qualify for and how to structure their mortgage from day one.

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