First Time Home Buyer Programs in BC: What do you Qualify for?

Can you qualify for first-time home buyer programs in BC if your partner has owned a home? You may still qualify for some benefits. BC can assess your share of the purchase separately for its property transfer tax exemption. Several federal programs ask whether you actually lived in a home that you or your spouse or common-law partner owned during a particular period. Even the rules for opening a First Home Savings Account differ from the rules for withdrawing from one.

That difference can affect how much you need on closing day. On a $650,000 resale condo, for example, regular BC property transfer tax is $11,000. It can drop to $3,000 if the entire purchase qualifies, or $7,000 if just one of two equal owners qualifies. Here’s how to work out which programs to look into before writing an offer on your first home in Victoria or elsewhere in BC.

BC First Time Home Buyers’ Program: How much property transfer tax could you save?

The BC First Time Home Buyers’ Program reduces the provincial property transfer tax generally due when title is registered. If the entire purchase qualifies and the home’s fair market value is $500,000 or less, the exemption can cover the full regular tax. Above $500,000 and through $835,000, it can reduce the regular tax by $8,000. The exemption tapers above $835,000 and is unavailable at $860,000 or more. Being under the $835,000 threshold does not mean the entire tax bill disappears.

To qualify, you generally must be a Canadian citizen or permanent resident, have never owned an interest in a home that was your principal residence anywhere in the world, and have never received this BC exemption or refund. You must also meet BC’s residency test by having lived in the province for the 12 consecutive months immediately before registration or having filed at least two BC resident income tax returns in the previous six taxation years. The property’s size and use can affect the exemption. For an existing home, you generally must move in within 92 days of registration and continue to use it as your principal residence through the first anniversary of registration.

Example: Buying a $650,000 resale condo. Assume $650,000 is the fair market value for tax purposes, the property meets the requirements and no additional transfer tax applies. If the entire purchase qualifies, the $8,000 exemption reduces the $11,000 tax bill to $3,000. If you buy with someone else and only your 50% ownership share qualifies, the exemption is $4,000 and the tax payable is $7,000. 

If neither buyer qualifies, the regular $11,000 is payable.Review BC’s official first-time buyer exemption amounts and have your lawyer or notary confirm what applies to your purchase. My Greater Victoria buyer closing costs guide explains the other expenses to include in your budget.

First Home Savings Account: Opening and withdrawing have different rules

The First Home Savings Account, or FHSA, gives eligible buyers $8,000 of participation room in the year they open their first account, with a $40,000 lifetime limit. Contributions are generally deductible, qualifying withdrawals are tax-free, and you don’t have to repay money you withdraw for a qualifying purchase. An RRSP-to-FHSA transfer uses FHSA room but does not create a new deduction.

When you open an FHSA, CRA considers whether you lived as your principal residence in a home that you or your spouse or common-law partner owned in the current calendar year or the previous four calendar years. When you make a qualifying withdrawal, the first-time buyer test looks at homes you personally owned or jointly owned and lived in during the relevant period.

That means living in a home owned solely by your partner may affect your ability to open an FHSA, but it does not by itself prevent a qualifying withdrawal from an account you properly opened. The withdrawal still has its own agreement, residency, timing and occupancy requirements, so check those before moving the money.

RRSP Home Buyers’ Plan: How much can you withdraw, and when do you repay it?

The federal Home Buyers’ Plan allows an eligible buyer to withdraw up to $60,000 from their own eligible RRSPs without tax withheld on a qualifying withdrawal. Two buyers who both qualify and each have enough eligible RRSP savings can withdraw up to $120,000 combined. You can also use the HBP and make a qualifying FHSA withdrawal for the same home if you meet the requirements of both programs.

The HBP generally requires repayment over 15 years. Under the temporary relief described by CRA, if your first withdrawal is in 2026, your first repayment year is generally 2031. If you miss a required repayment, the unpaid portion is generally added to your taxable income for that year. The HBP also considers whether you lived in a home owned by your current spouse or common-law partner during the applicable period.

If you’re counting on RRSP or FHSA funds for your deposit, confirm the withdrawal timeline with your financial institution. Qualifying to withdraw and having the cash available on the contract’s deposit deadline are separate matters.

Federal Home Buyers’ Amount: A credit you claim when you file your taxes

Eligible buyers can claim up to $10,000 on line 31270 of their federal tax return. At the 2026 federal credit rate of 14%, the maximum federal tax reduction is $1,400. The credit is non-refundable, so the amount you benefit depends on how much federal income tax you owe. Eligible co-buyers can share the claim, but the combined claim for the same home can’t exceed the program limit.

The usual eligibility test considers whether you lived in another home that you or your spouse or common-law partner owned during the acquisition year or the previous four years. Separate provisions apply to some disability-related purchases. This credit is claimed on your tax return, so leave it out of the money you’re counting on to complete the purchase.

Buying new in BC? Check the GST rebate and property transfer tax exemption separately

The federal first-time home buyers’ GST rebate can recover up to 100% of the GST, to a maximum of $50,000, on a qualifying new or substantially renovated home valued at $1 million or less. The rebate tapers above $1 million and reaches zero at $1.5 million.

For a typical builder purchase, the agreement must be entered into on or after March 20, 2025, and before 2031. Construction, completion, transfer and first occupancy also have their own requirements. The qualifying buyer generally must be at least 18 and a Canadian citizen or permanent resident. The home must be intended as their primary residence, and neither the buyer nor their spouse or common-law partner can have previously received this first-time buyer rebate. For a typical builder purchase, the first-time buyer test is generally applied when ownership transfers. Review the CRA’s full GST rebate eligibility rules before relying on the rebate.BC’s Newly Built Home Exemption applies to provincial property transfer tax. It can fully exempt a qualifying purchase with a fair market value of $1.1 million or less, with partial relief above that amount and below $1.15 million. You do not need to be a first-time buyer, but the buyer, property and occupancy must meet BC’s requirements.

Example: Buying a $950,000 new townhome in the Westshore. Assume $950,000 is the price before GST and the fair market value for PTT purposes. GST at 5% would be $47,500, potentially recoverable if the federal rebate requirements are fully met. Regular BC property transfer tax would be $17,000, which could be reduced to zero if the entire transfer qualifies for BC’s Newly Built Home Exemption.Ask whether GST is included in the advertised price and whether the builder will credit the rebate at closing or you’ll apply for it later. That timing determines how much cash you need to complete. If you’re comparing a new build with a resale home, my BC first-time buyer GST rebate article explains what to ask about before you sign.

Can you qualify if your partner owns a home you’ve never lived in?

Say you’ve never owned a home. Your spouse or common-law partner owns a condo they lived in recently, but you’ve always rented elsewhere and never lived in that condo as your principal residence. In BC, you may qualify for the first-time PTT exemption on your ownership share even if your partner doesn’t qualify on theirs. For federal programs like the FHSA, HBP and Home Buyers’ Amount, your partner’s ownership alone does not necessarily disqualify you; your own occupancy history and each program’s timing and other requirements matter. If you’re buying new, check the GST rebate separately, including whether either of you has already received it.

If you did live in your partner’s condo during the applicable period, you might still qualify for BC’s exemption on your share while failing the federal tests for opening an FHSA or using the HBP. 

If you already have a properly opened FHSA, check the separate withdrawal rules before assuming you can’t use it.The reverse can happen, too. If you sold a home you owned and lived in in 2020 and have rented since, you may meet certain federal first-time buyer tests in 2026 if the other requirements are met. BC’s first-time PTT exemption can still exclude you because it looks at whether you ever owned an interest in a home that was your principal residence.

One benefit to check after you move in

The BC Home Owner Grant helps eligible owners with annual property taxes. It is available to qualifying homeowners regardless of whether this is their first purchase. In 2026, the regular grant in the Capital Regional District is $570 for eligible homeowners at or below the $2,075,000 assessed-value threshold. A reduced grant may apply above that threshold.

Work out what you can use before you write an offer

Start with the money you’ll have available for the deposit and down payment. Then confirm the tax relief your lawyer or notary can account for on closing day. Keep anything you’ll claim afterward, such as an income tax credit or a rebate the builder isn’t crediting at closing, separate from those amounts.

If you’re buying with someone else, write down who owned each previous home, who lived there, when they lived there and how you plan to take title. Those details will help your legal, mortgage and tax professionals confirm which programs apply to your purchase

.If you’re just getting started, explore my First-Time Home Buyers Guide for Victoria, BC, visit my Greater Victoria buyer resources, or browse homes for sale across Greater Victoria.

Request my complimentary First-Time Home Buyer Guide. Tell me where you’re looking and whether you’re considering resale or new construction. I’ll help you identify the questions to ask and the costs to confirm before you start comparing homes.