First-Time Home Buyer Incentives in British Columbia: What You Can Qualify for in 2026

Buying your first home in British Columbia can feel financially overwhelming, particularly in higher-priced markets such as Victoria and the Lower Mainland. The good news is that first-time home buyers may have access to several provincial and federal programs that can reduce taxes, help build a down payment, and potentially save thousands of dollars.

In 2026, there is also an important new incentive for buyers considering new construction: the federal First-Time Home Buyers’ GST/HST Rebate.

Here are the major programs first-time buyers in British Columbia should know about.

1. B.C. First-Time Home Buyers’ Property Transfer Tax Program

Property Transfer Tax (PTT) is one of the closing costs buyers sometimes overlook when budgeting for a home in British Columbia.

The B.C. First Time Home Buyers’ Program can reduce the amount of Property Transfer Tax an eligible first-time buyer has to pay.

For qualifying purchases:

• Homes with a fair market value of $835,000 or less may qualify for an exemption on the Property Transfer Tax applicable to the first $500,000 of the property’s value.
• The maximum exemption can be $8,000.
• A partial exemption is available for qualifying properties valued between $835,000 and $860,000.
• Other requirements relating to residency, citizenship/permanent residency, property size and principal-residence use also apply.

To qualify as a first-time buyer under this particular B.C. program, you generally must never have owned a registered interest in a property that was your principal residence anywhere in the world and must not have previously received this exemption.

Why this matters for Victoria buyers

With Greater Victoria home prices, many detached houses will exceed the program's price threshold. However, the exemption can still be very relevant for buyers considering condos, some townhomes and other entry-level properties.

Don't automatically assume you won't qualify. Have your Realtor and legal professional look at the specific property and your circumstances.

2. First Home Savings Account (FHSA)

If you're planning ahead for your first purchase, the First Home Savings Account (FHSA) is one of the most valuable tools available.

An FHSA combines some of the best features of an RRSP and TFSA.

Eligible first-time buyers can contribute up to:

$8,000 per year, subject to available FHSA participation room, with a $40,000 lifetime contribution limit.

Contributions are generally tax deductible, which can reduce your taxable income. Qualifying withdrawals used toward the purchase of your first home can then be made tax-free.

That combination makes the FHSA particularly powerful: you may receive a tax benefit when contributing and, if the withdrawal qualifies, don't pay tax when taking the money out to purchase your home.

For couples who both qualify, each person can have their own FHSA.

3. RRSP Home Buyers’ Plan — Up to $60,000

Already have money accumulated in an RRSP?

The federal Home Buyers’ Plan (HBP) allows an eligible buyer to withdraw up to $60,000 from their RRSP to purchase or build a qualifying home.

If two people are purchasing together and both meet the requirements, each can potentially access the program.

Unlike an FHSA qualifying withdrawal, however, money withdrawn through the HBP generally needs to be repaid to your RRSP over a period of up to 15 years.

Can you use an FHSA and the Home Buyers’ Plan together?

Yes.

This is an important point that first-time buyers sometimes miss.

If you qualify, the federal government allows you to make a qualifying withdrawal from your FHSA and withdraw money from your RRSP through the Home Buyers’ Plan for the same home purchase.

For buyers who have been saving for several years, combining these programs can substantially increase the funds available for a down payment.

4. NEW: First-Time Home Buyers’ GST/HST Rebate

This is one of the biggest recent changes for first-time home buyers considering new construction.

The federal First-Time Home Buyers’ GST/HST Rebate is now law, and applications are open.

Eligible first-time buyers purchasing, building or substantially renovating a new home may be able to recover:

• Up to 100% of the GST, to a maximum rebate of $50,000, on a new home valued at $1 million or less.
• A partial rebate on qualifying new homes valued between $1 million and $1.5 million.
• At $1.5 million or more, the new first-time buyer rebate is no longer available.

The home must meet the program's eligibility requirements and be intended as a primary residence.

Why this is particularly important in B.C.

GST can represent a significant additional expense when purchasing a newly constructed home.

For a qualifying first-time buyer, a rebate worth up to $50,000 can materially change the economics of buying new construction compared with resale.

There are specific rules surrounding eligibility, purchase agreements, ownership and application deadlines, so buyers considering a new development should investigate the rebate before assuming what their final purchase costs will be.

5. B.C. Newly Built Home Property Transfer Tax Exemption

There's another incentive worth knowing about if you're considering a brand-new home.

British Columbia has a separate Newly Built Home Exemption for Property Transfer Tax.

For qualifying newly built principal residences:

• A full Property Transfer Tax exemption may be available on homes with a fair market value of up to $1.1 million.
• A partial exemption is available between $1.1 million and $1.15 million.

Importantly, this program is not limited only to first-time home buyers.

For a first-time buyer considering a new condo or townhouse in Greater Victoria, it's therefore worth examining both the provincial Property Transfer Tax rules and the federal GST rebate when calculating the true cost of the property.

6. Federal Home Buyers’ Amount

After purchasing your first home, there may be another tax benefit available when you file your income tax return.

The federal Home Buyers’ Amount allows eligible home buyers to claim up to $10,000.

It is a non-refundable federal tax credit, meaning it reduces federal income tax otherwise payable rather than providing a $10,000 cash payment. The federal government describes the resulting maximum tax savings as up to approximately $1,500, depending on the applicable tax rules.

It's worth discussing this credit with your accountant or tax professional after purchasing your home.

How Much Could a First-Time Buyer Potentially Save?

There isn't one answer because the programs work differently and eligibility depends on the buyer and the property.

A first-time buyer could potentially benefit from a combination of:

• B.C. Property Transfer Tax savings
• FHSA tax deductions and tax-free qualifying withdrawals
• Up to $60,000 from an RRSP through the Home Buyers’ Plan
• The federal Home Buyers’ Amount
• B.C.'s Newly Built Home Property Transfer Tax exemption
• The new federal First-Time Home Buyers’ GST/HST Rebate of up to $50,000 on qualifying new construction

The important point is that some of these programs can be used together.

That makes planning before you start seriously shopping extremely important.

Buying Your First Home in Victoria, BC

One of the biggest mistakes I see first-time buyers make is focusing entirely on the down payment.

Your down payment is important, but it's only one part of the financial picture.

Before purchasing a home in Victoria, you should also understand your mortgage qualification, Property Transfer Tax, legal fees, inspection costs, strata expenses where applicable, insurance, closing adjustments and the government programs available to you.

Understanding these costs early can help you establish a realistic price range and avoid unpleasant surprises once you've found the property you want.

Start Planning Before You Start Shopping

If you're hoping to buy your first home in Victoria, Saanich, Langford, Sidney or elsewhere in Greater Victoria, you don't need to know exactly when you're going to buy before you start planning.

In fact, the earlier you understand your options, the better.

A good first step is to determine which first-time buyer programs you qualify for, speak with a mortgage professional about financing, and establish a realistic budget before getting emotionally invested in properties.

Buying your first home is a big financial decision, but it doesn't have to be confusing. My approach is to educate and guide first-time buyers through each stage of the process so they understand not just what they're doing, but why they're doing it.

Government programs, tax rules and eligibility requirements can change, and individual circumstances vary. Buyers should confirm current eligibility with the Government of Canada, Province of British Columbia and their appropriate financial, legal or tax professionals before relying on an incentive.