First-Time Home Buyer in BC: FHSA, Home Buyers' Plan and Property Transfer Tax Exemption

If you're buying your first home in Metro Vancouver, three programs can make a big difference. Most buyers use only one of them.

1. First Home Savings Account (FHSA)

• Save up to $8,000 a year, up to $40,000 in total per person.
• Contributions are tax-deductible, like an RRSP.
• Withdrawals for your first home are tax-free, like a TFSA.
• Unused room (up to $8,000) carries into the next year.

A couple can save $80,000 together.

2. RRSP Home Buyers' Plan (HBP)

• Withdraw up to $60,000 each from your RRSPs for your first home, tax-free.
• You repay it to your RRSP over 15 years.

A couple can use up to $120,000. You can use the FHSA and the HBP together.

3. Property transfer tax exemption

First-time buyers in BC pay no transfer tax on the first $500,000 of the price, which is a saving of up to $8,000 on homes up to $835,000. On a new home, the newly built exemption can save even more.

Putting it together

A couple who max out both programs could have up to $200,000 toward their first home before counting regular savings.

My First Home Savings Plan shows how much you can save each year and when you'll reach your down payment. Then use the Mortgage calculators to see what you can afford.

Thinking about buying in the next year or two? Call or text me at 604-612-7228.

General information, not tax advice. Check your FHSA and RRSP room with the CRA.