First time home buyers' program
The first time home buyers' program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
If one or more of the purchasers do not qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.
For example, if you acquired 60% interest in the property and another person acquired 40% interest but only you meet the qualifications, only your 60% would receive the exemption.
When you're a first-time homebuyer in British Columbia, two valuable savings options are the Tax-Free Savings Account (TFSA) and the new First Home Savings Account (FHSA).
- TFSA: The TFSA allows you to save money tax-free, with no taxes on withdrawals. While it's not specifically designed for home purchases, it's a flexible option for accumulating savings. You can use these funds for a down payment or other home-buying costs without worrying about tax implications.
Learn More about TFSA
- FHSA: Launched in 2023, the FHSA is tailored for first-time homebuyers, allowing you to contribute up to $8,000 annually, with a lifetime cap of $40,000. Contributions are tax-deductible, and withdrawals, including any investment income, are tax-free when used for purchasing your first home. This account combines the benefits of the TFSA and RRSP, offering substantial tax advantages for homebuyers in BC.
Learn More about FHSA