First time Home Buyers’ Information
First Time Home Buyers’ Program
As a first-time home buyer in British Columbia, you may be eligible for the First Time Home Buyers’ Program, which can reduce or eliminate the property transfer tax—a significant expense when purchasing a home. To qualify for a full exemption as of April 1, 2024, the property must have a fair market value of $835,000 or less. Partial exemptions are available for properties valued between $835,000 and $860,000. Additionally, the property should be 0.5 hectares (1.24 acres) or smaller and used as your principal residence. Eligibility criteria include being a Canadian citizen or permanent resident, having lived in B.C. for at least a year immediately before the property registration date or filed at least two income tax returns as a B.C. resident in the last six years, and never having owned a principal residence anywhere in the world. For more detailed information, please visit the Government of British Columbia’s official page on the First Time Home Buyers’ Program.
Home Buyers’ Plan
The Home Buyers’ Plan (HBP) allows first-time home buyers in Canada to withdraw up to $60,000 from their Registered Retirement Savings Plans (RRSPs) tax-free to purchase or build a home. If buying with a partner who also qualifies, you can withdraw a combined total of $120,000. To be eligible, you must not have owned a principal residence in the past four years, and the home must be your primary residence within a year of purchase. Withdrawn funds must be repaid into your RRSP over 15 years, with annual minimum repayments of 1/15th of the total amount. Any missed repayment is added to your taxable income for that year. To withdraw funds, you must complete Form T1036 and submit it to your RRSP provider. For more details, visit the Canada Revenue Agency’s official page on the Home Buyers’ Plan.
First Time Home Buyers’ Tax Credit
The First-Time Home Buyers’ Tax Credit (HBTC) is a federal non-refundable tax credit designed to assist Canadians purchasing their first home. As of the 2022 tax year, the credit amount has been increased to $10,000, providing eligible home buyers with a tax credit of up to $1,500. To qualify, you or your spouse or common-law partner must acquire a qualifying home and not have owned and lived in another home in the year of purchase or any of the four preceding years. This credit can help offset various closing costs, making the home-buying process more affordable. For detailed information, visit the Canada Revenue Agency’s page on the First-Time Home Buyers’ Tax Credit.