First-Time Buyer Help in BC: PTT Exemption, GST Rebate and the FHSA
Three different kinds of help
There is no single first-time buyer program in BC — there are several, run by different levels of government, and each has its own rules. The three worth knowing are the provincial Property Transfer Tax exemption, the federal GST rules for new homes (including a partial rebate), and the federal First Home Savings Account (FHSA), which helps you save the down payment itself. Our first-time buyers page walks through the buying process step by step; this article covers the money side.
The first-time buyer PTT exemption
The Property Transfer Tax is normally 1% on the first $200,000 of a home's value, 2% on the portion up to $2,000,000 and 3% above that — $16,000 on a $900,000 home. Qualifying first-time buyers can receive a full or partial exemption from this tax: no PTT on the first $500,000 of the home's value — a saving of up to $8,000 — on homes priced up to $835,000, with the exemption phasing out between $835,000 and $860,000. On a home above $860,000 the exemption no longer applies, so the full tax is due. To qualify you must be a Canadian citizen or permanent resident, have lived in BC for at least a year before the purchase (or filed two BC tax returns in the previous six years), never have owned a home that was your principal residence anywhere in the world, and move into the home as your principal residence. Verify the current rules at gov.bc.ca before you write an offer.
New homes: GST, the rebate and the newly built exemption
Buying brand new adds a federal tax that resales do not have: 5% GST applies to new homes — ordinary resales are exempt, although a home that has been substantially renovated can be taxed as new. For first-time buyers, much or all of that GST can now come back: since March 2026 the federal first-time buyer GST rebate removes the GST entirely on new homes up to $1,000,000 — worth up to $50,000 — and phases out between $1,000,000 and $1,500,000. The older GST new-housing rebate still exists for other buyers, returning 36% of the GST and phasing out for homes priced between $350,000 and $450,000. Separately, BC runs a newly built home exemption that can reduce or remove the Property Transfer Tax on a new home. If you are comparing a new build against a resale, run both through the full tax picture, not just the sticker price.
The FHSA: saving the down payment, tax-free
The First Home Savings Account helps before you buy. You can contribute up to $8,000 per year, to a $40,000 lifetime maximum; unused room carries forward to later years, and contributions are tax-deductible. When you buy a qualifying first home, withdrawals from the account are tax-free — so the same dollars get a deduction going in and no tax coming out. The account must be used within 15 years. If you are a year or more away from buying, opening an FHSA early starts the clock on your contribution room. Full details are at canada.ca.
A note before you rely on this
This article is general information only, not legal or financial advice. Program rules, thresholds and figures change — verify the current details at gov.bc.ca and canada.ca before you buy.
Frequently asked questions
Can I combine the first-time buyer PTT exemption with other programs?
The programs are separate, with separate eligibility rules — the PTT exemption is provincial, while the GST rebate and the FHSA are federal. Qualifying for one does not automatically qualify you for another, so check each one on its own terms at gov.bc.ca and canada.ca.
Does GST apply when a first-time buyer purchases a resale home?
No, not on an ordinary resale. The 5% GST applies to new homes, and to homes that have been substantially renovated. A first-time buyer of a resale home is mainly concerned with the Property Transfer Tax and whether the first-time buyer exemption applies.
How much can I put in an FHSA, and when do I have to use it?
Up to $8,000 per year, to a $40,000 lifetime maximum, and unused room carries forward. Contributions are tax-deductible and withdrawals for a qualifying first home are tax-free. The account must be used within 15 years.