Who this is for
Anyone in BC buying a first home, and parents helping a son or daughter buy one. Some of these programs need action months before closing, so read this early.
The five programs
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First Home Savings Account (FHSA). A savings account for a first home. You can put in up to $8,000 a year and $40,000 in total. Contributions reduce your taxable income like an RRSP, and withdrawals for a qualifying home are tax free. Open it early: unused room carries forward only once the account exists. You can also move money from an RRSP into it.
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Home Buyers’ Plan (HBP). You can take up to $60,000 out of your RRSP to buy or build a first home without paying tax on the withdrawal. You repay it to your RRSP over 15 years. For withdrawals made in 2022 through 2028, the repayments start in the fifth year after the withdrawal instead of the second. You can use the HBP and an FHSA for the same home. You must intend to live in the home within a year.
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The federal Home Buyers’ Amount. A one-time claim on your tax return for the year you buy. It is a credit against tax, not a cheque. You and your spouse share one claim. We add it to the return for that year. Bring the purchase documents.
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The first-time home buyers’ GST rebate on new homes. New in 2026. You qualify if you are at least 18 and a Canadian citizen or permanent resident. You must not have lived in a home you or your spouse owned in this year or the previous four. The home must be newly built and become your main residence. Then you can get the federal GST back. Full GST back up to $1 million, up to $50,000. It phases out between $1 million and $1.5 million. The purchase agreement must be dated on or after May 27, 2025. Builders can credit it at closing, or you claim it from the CRA. Once per lifetime, one claim per couple.
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BC property transfer tax exemption for first-time buyers. BC charges a transfer tax when a home changes hands. First-time buyers can be exempt from part or all of it. For homes registered on or after April 1, 2024, the exemption is full up to $500,000. It is $8,000 between $500,000 and $835,000. It shrinks up to $860,000 and is nil above that. There are residency and prior-ownership conditions, and you must move in within a set time. Your lawyer or notary claims it at registration, so raise it before closing.
One thing most people do not realize
Since March 2026, a first-time buyer of a newly built home priced up to $1 million can get all of the federal GST back. The maximum is $50,000. The rebate shrinks between $1 million and $1.5 million and is nil above that. It applies to purchase agreements signed with a builder on or after May 27, 2025. It can be used once in a lifetime, with one claim per couple. On a $900,000 new home that is $45,000. Most people have not heard of it yet.
What to bring if you want help
- The accepted offer or purchase agreement, with the date it was signed
- Whether the home is newly built or resale, and the price
- Your FHSA and RRSP statements
- Your closing date and your lawyer or notary’s name
- For the GST rebate: proof of age and status, and whether a spouse is on title
What this guide does not cover
Mortgage advice, whether to buy, and the legal side of closing. The BC exemption and the GST rebate both have detailed conditions. We check them against your situation before anything is claimed, and we say if something does not apply.
From the Rex Tax desk
The question we get after closing, rather than before, is about the Home Buyers' Plan. Taking money out of an RRSP for a home is simple. Remembering to repay it over the following years is where people slip, and a missed repayment becomes taxable income that year. Put the repayment amount in your calendar when you buy, not when the CRA writes.
Official sources
- Department of Finance: GST relief for first-time home buyers on new homes valued up to $1.5 million (May 2025)
- CRA: First-time home buyers' GST/HST rebate
- Department of Finance: Legislation receives Royal Assent (March 12, 2026)
- CRA: What is the Home Buyers' Plan
- CRA: Tax implications of milestone life events (FHSA and HBP limits)
- Government of BC: First time home buyers' program, current amounts
This guide is general information, not advice about your situation. It reflects the rules for the 2026 tax year. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.