Buying your first home in Vancouver is an exciting milestone, but it can also feel financially overwhelming. Fortunately, British Columbia offers several programs and credits specifically designed to help first-time home buyers.
1. Home Buyers’ Plan (HBP)
The Home Buyers’ Plan allows first-time home buyers in Vancouver to pull from their RRSP savings tax-free for their down payment. Up to $60,000 can be withdrawn tax-free (as of April 16, 2024 – an increase from $35,000!) per person purchasing the house, which means that you and a partner can potentially use up to $120,000 from your RRSPs toward your down payment. A couple of things to keep in mind:- You don’t need to withdraw the full amount to take advantage of the Home Buyers’ Plan, meaning you can leave some savings in your RRSP for retirement while still contributing to your down payment.
- To keep withdrawals tax-free, they must be repaid into your RRSP within 15 years.
2. Property Transfer Tax (PTT) Exemption
In British Columbia, if you’re purchasing a property for $835,000 or less, first-time home buyers in Vancouver may be eligible for an exemption from the Property Transfer Tax (PTT). If you meet all of the requirements (a full list is available on the BC government’s website), you will be exempt from the property transfer tax on the first $500,000 of the property’s purchase price. When purchasing a home with a partner, you may still qualify for a partial exemption even if one of you has owned a home previously. Partial exemptions are also available for houses on lots larger than 0.5 hectares, multiple buildings on the same property, or for homes priced between $835,000 and $860,000.3. BC Home Owner Grant
After purchasing a home in Vancouver, the BC Home Owner Grant helps reduce the amount of property tax paid each year. For many homeowners who have homes valued up to $2,150,000, the grant offers:- Up to $770 in property tax relief for most homeowners.
- Up to $1,045 for seniors, veterans, and people with disabilities.
4. BC New Housing Property Transfer Tax Exemptions
Thinking of purchasing a new build in Vancouver? Effective April 1, 2024, buyers of newly constructed homes up to $1,100,000 are exempt from the Property Transfer Tax, with partial reductions available for homes between $1,100,000 and $1,150,000. Find out if you qualify on the BC Government’s website.5. First-Time Home Buyers’ Tax Credit (HBTC)
The First-Time Home Buyers’ Tax Credit allows first-time home buyers to claim a tax credit of up to $1,500 to help lessen some of the closing costs associated with purchasing a home. You can claim up to $10,000 on your personal tax return for the purchase of a home for the tax year you purchased the property. Learn more about this credit on the Government of Canada’s website.6. 30-Year Mortgages
In addition to the various rebates and exemptions available, first-time home buyers in Vancouver can also take advantage of new 30-year mortgages as of December 15, 2024. The additional 5 years to pay back a mortgage helps reduce the monthly payments for first-time home buyers, making homeownership more affordable for many Canadians. Between August and December 2024, this program is only available to first-time home buyers of new builds. However, the program has expanded to include all first-time home buyers and all buyers of new builds.Key Qualification Criteria:- At least one of the borrowers must be a first-time homebuyer.
- The loan must be for at least 80% of the purchase price (in other words, a down payment of 20% or less).