What is the BC first-time home buyer exemption?

First-time buyers in BC may qualify for a full exemption from Property Transfer Tax on homes up to $500,000, or a partial exemption on homes up to $525,000. This can save up to $8,000 in tax.

Is there a new home exemption in BC?

Yes. In addition to the first-time buyer exemption, newly built homes priced up to $750,000 qualify for a full Property Transfer Tax exemption (up to $1,100,000 for partial exemption). This can be combined with other programs if eligible.

How much income do you need to buy a home in BC in 2026?

It depends on the city. In Vancouver, where the benchmark price is $1.1M+, you typically need a household income of $180,000–$220,000. In cities like Kelowna ($650K–$750K) or Victoria ($750K–$900K), you need roughly $120,000–$160,000. Smaller markets like Prince George or Kamloops ($400K–$500K) are accessible with $80,000–$100,000 household income.

First-Time Home Buyer Guide BC 2026: PTT Exemption, Programs & Costs

Q: What is the BC HOME Partnership program?

The BC HOME Partnership was a loan matching program that provided up to $37,500 toward down payments. This program closed for new applications in 2018. Current alternatives include FHSA and the federal Home Buyers'' Plan.

First-Time Home Buyer Benefits in BC

Benefit	Maximum Value	Eligibility
PTT First-Time Buyer Exemption	$8,000	Homes up to $525,000
PTT Newly Built Home Exemption	$13,000+	New homes up to $1,100,000
Federal First-Time Home Buyers’ Tax Credit	$1,500	All first-time buyers
FHSA	$40,000 tax-deductible savings	Open to qualifying buyers
Home Buyers’ Plan (HBP)	$60,000/person RRSP withdrawal	All first-time buyers

BC Property Transfer Tax Rates

Fair Market Value	Tax Rate
First $200,000	1%
$200,000 - $2,000,000	2%
$2,000,000 - $3,000,000	3%
Over $3,000,000	5% on residential

First-Time Home Buyer Exemption

Home Price	PTT Exemption
Up to $500,000	Full exemption ($8,000 at $500K)
$500,001 - $525,000	Partial exemption (proportional)
Over $525,000	No exemption

Newly Built Home Exemption

Home Price	Exemption
Up to $750,000	Full exemption
$750,001 - $800,000	Partial exemption
Over $800,000	No exemption

Note: Can be combined with first-time buyer exemption if you qualify for both.

PTT Examples

Purchase Price	Regular PTT	First-Time Buyer	Newly Built
$500,000	$8,000	$0	$0
$700,000	$12,000	$12,000	$0
$900,000	$16,000	$16,000	$16,000
$1,200,000	$22,000	$22,000	$22,000

Eligibility: First-Time Buyer Exemption

Requirement	Details
Citizenship	Canadian citizen or permanent resident
Residency	BC resident for 12+ months, OR filed 2 BC tax returns in past 6 years
Previous ownership	Never owned principal residence anywhere in the world
Property type	Must be used as principal residence
Property value	$525,000 or less (fair market value)
Property size	0.5 hectares (1.24 acres) or less

Down Payment Requirements

Home Price	Minimum Down Payment
Under $500,000	5%
$500,000 - $1,000,000	5% + 10% above $500K
Over $1,000,000	20% (no CMHC insurance)

Down Payment Sources

Source	Details
FHSA	$40,000 tax-deductible, tax-free withdrawal
HBP (RRSP)	$60,000 per person, repay over 15 years
Savings	Regular savings accounts
Gifts	Family gifts (lender may require gift letter)

First Home Savings Account (FHSA)

Feature	Details
Annual contribution	$8,000
Lifetime limit	$40,000
Tax benefit	Deductible + tax-free growth
BC-specific	BC Training and Education Savings Grant (for children)

Closing Costs in BC

Cost	Estimated Amount
Property transfer tax	$0 - $16,000+ (may be exempt)
Legal fees	$1,500 - $2,500
Title insurance	$250 - $500
Home inspection	$400 - $600
Appraisal	$300 - $500
GST (new home only)	5% of purchase price
Moving costs	$500 - $2,000

Total closing costs: $5,000 - $50,000+ (varies greatly based on price and property type)

GST on New Homes

Situation	GST
Resale home	No GST
New construction	5% GST (may qualify for rebate)
GST New Housing Rebate	36% rebate if home price < $350,000

BC-Specific Considerations

Home Owner Grant

Property Type	Grant Amount
Basic grant	$570
Additional grant (seniors, disabled)	Up to $845
Northern/Rural	Additional $200

Reduces property tax for homes assessed under the threshold (approximately $2.15 million).

Speculation and Vacancy Tax

If buying in designated areas (Vancouver, Victoria, etc.), be aware of annual declarations and potential tax if the property isn’t occupied.

Foreign Buyer Ban

Non-citizens/PRs cannot purchase residential property in BC unless exempt.

Step-by-Step Process

Step	Timeline
1. Get pre-approved	3-6 months before
2. Open FHSA, maximize contributions	1-5 years before
3. Find a REALTOR (buyer’s agent)	When ready to search
4. Search and view properties	Varies
5. Make offer (subject to conditions)	When you find a home
6. Complete subjects (inspection, financing)	7-14 days
7. Closing preparations (lawyer/notary)	2-8 weeks
8. Completion and possession	Closing day

BC property tax and strata fee considerations

Property Transfer Tax (PTT): BC’’s PTT applies at 1% on the first $200,000, 2% on $200,001–$2M, and 3% above $2M. On a $750,000 home: PTT = $13,000. The First-Time Buyer Exemption covers homes up to $500,000 fully, with a partial rebate on $500,001–$525,000.

Newly Built Home PTT Exemption: On new construction, first-time buyers may qualify for a full exemption up to $1,100,000 (introduced in 2024). Check bchousing.org for current thresholds, as these are updated periodically.

Strata fees: A large share of BC properties (particularly in Greater Vancouver) are in strata corporations (condos, townhomes). Strata fees cover maintenance, insurance, and the contingency reserve fund. Budget $200–$600/month; always review the strata financial statements and minutes before purchasing.

Frequently asked questions

What is the BC HOME Partnership program? The BC HOME Partnership down payment loan program was discontinued in 2018. As of 2026, BC does not offer a provincial down payment assistance loan. Federal programs (FHSA, RRSP HBP) are the primary tools for down payment savings.

Are there property purchase restrictions for foreign buyers in BC? The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (2023–2027) restricts non-residents and non-permanent-residents from purchasing residential property in Canadian census metropolitan areas, including Vancouver and Victoria. BC also has a foreign buyers’’ tax (20% additional PTT) for non-citizens/non-PRs purchasing in Metro Vancouver, Fraser Valley, Capital Regional District, and other specified areas.