FIRST TIME HOME BUYERS
Thinking about buying your first home? Check out these valuable incentives that could make all the difference in your home buying journey!
1. First Home Savings Account (FHSA)
The FHSA is a new registered savings account designed specifically for first-time homebuyers. You can contribute up to $8,000 per year, with a lifetime limit of $40,000, and your contributions are tax-deductible—just like an RRSP. Even better? When you withdraw funds to purchase your first home, the money (including any investment growth) is completely tax-free, similar to a TFSA. It's a powerful way to save with significant tax benefits.
2. GST New Housing Rebate
On March 20, 2025, Prime Minister Mark Carney announced that the federal government will completely eliminate the 5% GST on newly constructed (or substantially renovated) homes purchased by first-time homebuyers, so long as the home’s fair-market value is $1 million or less, effectively saving buyers up to $50,000 at closing.
3. Property Transfer Tax (PTT) Exemption
In BC, first-time homebuyers may qualify for a full or partial exemption from the Property Transfer Tax. For eligible buyers purchasing homes under $500,000, this can mean a savings of up to $8,000. There are partial exemptions available for homes priced up to $835,000. Note: there are full PTT exemptions for newly constructed homes under $1,100,000.
4. Home Buyers’ Plan (HBP)
Don't forget—you can also withdraw up to $60,000 from your RRSPs (as of 2024 changes) to help with your down payment under the federal Home Buyers’ Plan. These withdrawals are tax-free, as long as you repay the amount over 15 years.
