The first time home buyers’ program reduces or waives property transfer taxes for eligible purchasers. If only some buyers qualify, only their portion of ownership receives the exemption.

To qualify for an exemption, at the time the property is registered you must:

-Be a Canadian Citizen or PR

-Have either: Lived in B.C. for at least a year immediately before the date you register the property OR Filed at least 2 income tax returns as a B.C. resident in the last 6 taxation years

-Have never owned a property that was your principal resident anywhere in the world

-Have never received FTHB exemption or refund

-Only be used as your Principal residence

-Have a fair market price of $835,000 or less

-Be 0.5 hectaresor smaller

-Contain only residential improvements

If all of the above requirements are met, the purchaser will be exempt from property transfer tax on the first $500,000 of the purchase price of the property.

How about partial exemption?

-Has a fair market price more than $835,000 but less than $860,000

-Is larger than 0.5 hectares, and/or

-Has another building on the property other than the principal residence

The newly built home exemption reduces or eliminates the property transfer tax on qualifying purchases of a principal residence.

Full exemption: The fair market value threshold for a full exemption for newly built homes is $1,100,000 and below.

Partial exemption: A partial exemption is also available for properties with fair market values just above the threshold. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying purchasers.

To qualify, you must meet criteria including but not limited to:
-You must be a Canadian citizen or permanent resident
-The property must be located in B.C.
-Only be used as your principal residence

The Home Buyers' Plan (HBP) allows first-time homebuyer to borrow from your registered retirement savings plans (RRSPs) tax-free to purchase or build a qualifying home. Currently, the HBP withdrawal limit is $60,000.

Under the current rules, amounts withdrawn under the HBP must be repaid over a maximum of 15 years. However, Budget 2024 proposes delaying the start of the 15-year repayment period by an additional 5 years for participants making a first withdrawal between January 1, 2022, and December 31, 2025. For instance, if you withdrew funds for the first time in 2022, your repayment would start in 2027.

The First Home Savings Account offers Canadians dedicated savings plan tailored for purchasing their first home. Available to Canadian residents aged 18 and above, the FHSA allows individuals to accumulate funds towards their home purchase.

There are limits to how much you can put in your FHSA:

Here are the key limitations for FHSA contributions:

-$8,000 annual contribution limit
-$40,000 lifetime contribution limit

Unused contribution room carries over to subsequent years. Accounts can be obtained from banks, credit unions, or any financial institution offering Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs). FHSA funds can be hold savings or investments. These may include mutual funds, bonds, and Guaranteed Investment Certificates (GICs).

Contributions made to an FHSA are typically tax deductible. This means you claim their yearly contributions on their tax returns, potentially reducing tax owing or add to your refund at tax time.