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27 Jul

How to Save When Buying a Home in B.C. (2025)

General

Posted by: Anastasia Lipatnikova

Buying a home in British Columbia can be a major financial commitment — but the good news is, there are a number of programs available in 2025 that can help reduce your upfront costs and long-term expenses. Whether you’re a first-time buyer or simply purchasing a new home, several federal and provincial incentives can support you on your path to homeownership.

Below, I’ve outlined key rebates, grants, and tax credits available to homebuyers in B.C., so you can better understand your options and take advantage of the support that may apply to your situation

Provincial Incentives (British Columbia)

1. Property Transfer Tax (PTT) Exemptions
First‑Time Home Buyers’ Program
If you qualify as a first-time buyer and meet the eligibility criteria, you may be eligible for a full or partial exemption from Property Transfer Tax:

  • Full exemption for homes with a fair market value of $500,000 or less

  • Partial exemption for homes priced:

    • $8,000 for homes between $500,000 and $835,000

    • Phased out for homes between $835,000 and $860,000

  • No exemption for homes over $860,000

2. BC Home Owner Grant
While the BC Home Owner Grant isn’t limited to first-time buyers, it can still provide meaningful annual savings for new homeowners — especially in the early years of ownership. This grant helps reduce the amount of property tax you pay on your principal residence.

  • Up to $570 for homes in Metro Vancouver, the Capital Region, and the Fraser Valley

  • Up to $770 for homes in all other areas of the province

  • Available for homes with an assessed or partitioned value up to $2,175,000

  • For homes valued above that, the grant is reduced by $5 for every $1,000 over the threshold

Federal Incentives

3. First Home Savings Account (FHSA)
A tax-advantaged way to save for your first home:

  • Contribute up to $8,000 per year, with a $40,000 lifetime limit

  • Contributions are tax-deductible

  • Withdrawals used to purchase a qualifying home are tax-free

4. Home Buyers’ Plan (HBP)
Borrow from your RRSP to help with your down payment:

  • Withdraw up to $60,000 per person (tax-free)

  • Couples can withdraw up to $120,000 combined

  • Repay over 15 years

  • If the withdrawal was made between Jan 1, 2022 and Dec 31, 2025, you may delay repayment for 3 years

5. Home Buyers’ Tax Credit (HBTC)
A helpful tax break when filing your return:

  • Claim a $10,000 non-refundable tax credit

  • Results in up to $1,500 in tax savings

  • Can be split between spouses or common-law partners

6. GST/HST New Housing Rebate
This federal rebate allows eligible buyers to recover part of the GST or federal HST paid on a new or substantially renovated home intended as their primary residence.

How it works in BC:

  • BC charges only the 5% federal GST (no HST), so the rebate applies to this GST portion only

  • Eligible buyers can recover 36% of the GST paid on homes priced up to $350,000 (before GST)

  • The maximum rebate amount is $6,300

  • For homes priced between $350,000 and $450,000, the rebate amount decreases gradually

  • No rebate is available for homes priced $450,000 or more

  • This rebate is not limited to first-time home buyers

7. New GST/HST Rebate for First-Time Home Buyers (2025 Proposal)
The federal government has proposed a new rebate exclusively for first-time home buyers to make new home purchases more affordable.

How it would work in BC:

  • First-time buyers could receive a 100% rebate of the 5% GST on newly built homes valued up to $1 million

  • For homes priced between $1 million and $1.5 million, the rebate is gradually reduced

  • No rebate applies to homes priced $1.5 million or more

  • This rebate would replace the existing partial GST New Housing Rebate for eligible first-time buyers in BC, providing greater upfront savings by allowing them to recover 100% of the GST paid

Please note: This is proposed legislation, tabled on June 5, 2025, and is not yet law. It is subject to parliamentary approval and may change before becoming official.

Final Thoughts

With a mix of tax exemptions, grants, and savings programs, first-time buyers in B.C. have a strong toolkit to reduce the financial barriers to homeownership. Taking the time to understand what you’re eligible for can help you save thousands.

Please note: Qualifications for first-time home buyer incentives differ from program to program, and other rules and conditions may apply. Always verify your eligibility and consult a professional for personalized advice.