By Janine Thomson | Realtor | Pemberton Holmes
GREATER VICTORIA & VANCOUVER ISLAND REAL ESTATE
September 27, 2026
Buying your first home in Victoria or elsewhere in British Columbia can require a substantial down payment and a careful closing-cost budget. The good news is that several federal and B.C. programs may help you save, use funds you already have, or reduce the tax payable on a qualifying purchase.
The programs are easy to confuse. An FHSA is your own savings. The Home Buyers’ Plan lets you withdraw your own RRSP funds and generally requires repayment. A tax exemption reduces tax you would otherwise owe.
A rebate may return eligible tax paid. They are not interchangeable, and none applies automatically to every first-time buyer.Here are the programs worth checking before you choose your price range or write an offer in 2026.
First, which “first-time buyer” definition applies?
There is no single definition that covers every program in this article. Eligibility for B.C.’s property transfer tax exemption may differ from eligibility for an FHSA, the Home Buyers’ Plan, or the federal GST/HST rebate. A spouse’s or partner’s ownership history can also affect some federal programs.That is why it is best to check each program’s own rules before counting its potential benefit in your budget. Your mortgage professional can help plan how you will fund the purchase; your lawyer or notary and tax professional can help confirm the treatment of applicable exemptions and rebates.For an overview of the purchase process, start with my First-Time Home Buyers Guide for Victoria and Greater Victoria.
1. B.C. First Time Home Buyers’ Property Transfer Tax exemption
What it does: Reduces or eliminates some of the B.C. property transfer tax (PTT) an eligible buyer would otherwise pay when the transfer is registered.For a qualifying purchase with a fair market value of $500,000 or less, the exemption can cover all of the general PTT. For a qualifying home valued above $500,000 and up to $835,000, the exemption is generally capped at $8,000. You may still owe PTT on value above $500,000. The exemption is reduced for homes valued above $835,000 but below $860,000 and is unavailable at $860,000 or more under this particular program.
For example, the general PTT on a $700,000 purchase is $12,000. If the buyer qualifies for the full $8,000 first-time buyer exemption, the remaining general PTT would be $4,000. That is a meaningful saving, but it is not a promise that every first-time buyer pays no PTT.
Eligibility includes requirements involving Canadian citizenship or permanent residence, B.C. residency or tax filing, previous property ownership, the property itself, and its use as your principal residence. Generally, you must move in within 92 days of registration and continue to meet the occupancy requirements through the first anniversary.Your lawyer or notary can determine whether you qualify and claim the appropriate exemption on the property transfer tax return.
Read the B.C. government’s First Time Home Buyers’ Program rules, and see my buyer closing-cost guidewhen planning your cash needed at completion.
2. First Home Savings Account (FHSA)
What it does: Helps an eligible person save for a qualifying first home through a registered account.An eligible buyer receives $8,000 of FHSA contribution room in the year their first account is opened, with additional room in later years, subject to the carry-forward rules and a $40,000 lifetime contribution limit. Contributions are generally tax-deductible. A qualifying withdrawal, including eligible investment growth, is tax-free and does not have to be repaid.
The $40,000 is a limit on money you contribute, not a government payment. You also do not automatically receive $40,000 of room the day you open an account. If both members of a couple qualify, each may be able to use their own FHSA.
Because participation room starts when you open your first FHSA, it can be useful to learn about the account before you are ready to buy. Check the CRA’s FHSA guide and talk with your financial or tax professional about your own contribution room.
3. RRSP Home Buyers’ Plan
What it does: Allows an eligible buyer to withdraw up to $60,000 from their RRSP to buy or build a qualifying home without immediate tax on an eligible withdrawal.If both members of a couple qualify and each has sufficient RRSP funds, they may potentially withdraw up to $120,000 combined. This is your existing RRSP money, not a grant. Amounts withdrawn under the plan generally have to be repaid over a 15-year repayment period. A required amount that is not repaid is generally included in your income for that year.There is an important 2026 timing update: the temporary delay before required repayments begin has been extended to eligible first withdrawals made through 2028. If your first Home Buyers’ Plan withdrawal is in 2026, your first required repayment year is 2031. Your personal schedule will appear in your CRA Home Buyers’ Plan information.
The Home Buyers’ Plan and an FHSA can be used for the same qualifying purchase if you meet each program’s requirements. Check the CRA’s current Home Buyers’ Plan guide before arranging a withdrawal.
4. Federal First-Time Home Buyers’ GST/HST rebate for a new home
What it does: May rebate some or all of the federal GST paid by an eligible first-time buyer on a qualifying new or substantially renovated home.For a qualifying home valued up to $1 million, the federal rebate can equal 100% of the GST, to a maximum of $50,000. It is gradually reduced for qualifying homes valued between $1 million and $1.5 million.
At $1.5 million or more, the first-time home buyers’ rebate is unavailable.
For most qualifying purchases from a builder, the purchase agreement must have been entered into on or after March 20, 2025, and before 2031. Other rules address ownership, occupancy, completion, and how and when to apply.GST still applies to a taxable new-home purchase. The rebate may affect what an eligible buyer ultimately pays or receives back, depending on how it is handled. Before signing a pre-sale or new-build contract, confirm whether the quoted price includes GST, who is entitled to any rebate under the contract, and how the closing funds will be calculated.
Read my detailed article, First-Time Home Buyer GST Rebate in BC: Who Qualifies and What You Pay at Closing, and verify eligibility with the CRA’s first-time home buyers’ GST/HST rebate guide.
5. B.C. Newly Built Home property transfer tax exemption
What it does: May reduce or eliminate B.C. property transfer tax on a qualifying newly built home used as a principal residence.You do not have to be a first-time buyer to qualify for this B.C. exemption.A full exemption may apply when the qualifying property’s fair market value is $1.1 million or less. A reduced exemption may apply above $1.1 million but below $1.15 million. At $1.15 million or more, this exemption is unavailable.
On a qualifying $1.1 million new home, the general PTT before an exemption is $20,000, so the potential saving can be substantial. Citizenship or permanent-resident status, the property’s characteristics, and principal-residence occupancy rules also matter.
The B.C. newly built home PTT exemption and the federal first-time home buyers’ GST rebate address different taxes. An eligible buyer may need to investigate both when budgeting for a new home. Ask your lawyer or notary which B.C. PTT exemption applies to your transaction, and consult the province’s newly built home exemption guide.
6. Federal Home Buyers’ Amount
What it does: Gives an eligible buyer a non-refundable federal income tax credit for the year they acquire a qualifying home.An eligible buyer can claim an amount of up to $10,000 on line 31270 of their federal income tax return. At the 14% lowest federal tax rate for 2026, that can reduce federal tax payable by up to $1,400. It is not a $10,000 refund or a $10,000 cheque. If two eligible people buy together, they can generally divide the claim, but their combined claim cannot exceed the permitted amount.
The ownership history of you and, generally, your spouse or common-law partner matters. Review the CRA’s Home Buyers’ Amount rules when preparing the return for your purchase year.
7. B.C. Home Owner Grant after you move in
What it does: Reduces eligible annual property tax on an owner’s principal residence. This is an ongoing homeowner benefit, not a program reserved for first-time buyers and not a credit against your purchase price at closing.For 2026, the regular grant in the Capital Regional District is worth up to $570. The full grant generally applies to eligible homes assessed at $2,075,000 or less, with a reduction above that threshold. You must meet the applicable rules and apply each year.
This grant may help your annual ownership budget after you buy, but it does not replace your down payment or closing funds. Check the B.C. Home Owner Grant rules.
Can you combine first-time buyer programs?
Potentially, yes, but calculate each benefit separately. An eligible buyer might use an FHSA withdrawal and Home Buyers’ Plan funds toward the same purchase, then qualify for a B.C. property transfer tax exemption. If the home is a qualifying new build, the federal GST rebate and the separate B.C. newly built home PTT exemption may also need to be assessed.Do not simply add every maximum on this page and call it your savings. For example, $40,000 of FHSA contributions and $60,000 of Home Buyers’ Plan withdrawals are your own funds. A non-refundable tax credit depends on tax payable. A rebate depends on the particular property, contract, and buyer.
Before making an offer, ask your mortgage professional and lawyer or notary to help prepare a property-specific cash-to-close estimate. It should account for your down payment, deposit already paid, legal fees, adjustments, PTT, and GST if applicable. My closing-cost guide for Victoria buyers explains the costs to put on that list.
Is the old federal First-Time Home Buyer Incentive still available?
No. The former federal First-Time Home Buyer Incentive was a shared-equity mortgage program. It stopped accepting new applications in March 2024. You may still encounter older blog posts or search results describing its 5% or 10% contribution, but it is not an option for a new 2026 application.That discontinued program is different from the current FHSA, Home Buyers’ Plan, and new federal first-time home buyers’ GST/HST rebate discussed above.
Your next step toward a first home in Greater Victoria
A program can improve your numbers, but the right purchase still has to work for your daily life and monthly budget. Start by talking with a mortgage professional, checking which benefits you personally qualify for, and setting a price range that leaves room for property tax, insurance, strata fees where applicable, and maintenance.Then explore the homes and neighbourhoods that fit. My Victoria first-time home buyer guide walks through the full process, and my buyer resources cover financing, offers, inspections, condos, and closing costs. You can also read 10 Things to Avoid When Buying a Home in Victoria as you prepare your search.If you are planning a first purchase in Victoria, Saanich, Esquimalt, View Royal, Colwood, Langford, Sidney, or elsewhere in Greater Victoria, I would be happy to help you understand the local options and connect you with the right professionals.Janine Thomson,
REALTOR® · Pemberton Holmes
778-678-5466
This article provides general information current to September 27, 2026. Program rules, tax treatment, and eligibility depend on the buyer and property and may change. Confirm your circumstances with the relevant government agency and qualified mortgage, legal, or tax professionals before relying on a benefit.
