What programs are available to first-time home buyers in BC in 2026?

BC first-time buyers can stack five main programs: the BC Property Transfer Tax exemption (up to $8,000 savings on homes under $835,000), the RRSP Home Buyers' Plan (withdraw up to $60,000 tax-free), the First Home Savings Account (contribute up to $40,000 tax-free and withdraw tax-free for a first home), the federal First-Time Home Buyers' Tax Credit ($1,500 back on your tax return), and the GST/HST New Housing Rebate on new construction. Couples can combine HBP and FHSA limits, accessing up to $200,000 in tax-advantaged down payment money between them.

How much down payment do I need for a first home in the Fraser Valley?

The minimum is 5% on the first $500,000 of the purchase price, then 10% on the portion between $500,000 and $1.5 million. For homes at or above $1.5 million, you need 20% because CMHC mortgage insurance no longer applies. For a $700,000 Surrey townhouse, the minimum down payment is $45,000 ($25,000 on the first $500K plus $20,000 on the next $200K).

What is the first step a first-time buyer in BC should take?

Open a First Home Savings Account (FHSA) as early as possible, even if you are three to five years from buying. The $8,000 annual contribution room only accrues once the account is open, so waiting costs you real money. After that, talk to a mortgage broker 6 to 12 months before you plan to buy so there is time to fix any credit or income issues before your pre-approval.

What income do I need to qualify for a home in the Fraser Valley in 2026?

For a $700,000 townhouse with the minimum $45,000 down payment, a 30-year amortization, and a 4.5% fixed rate, you need roughly $135,000 to $145,000 in qualifying household income after applying the federal stress test at 6.5%. Most first-time buyers in Surrey and Langley reach this threshold by co-buying with a partner or including a co-signer.

Can I use the FHSA and the RRSP Home Buyers' Plan together?

Yes, they stack. On the same home purchase, you can withdraw up to $60,000 from your RRSP via the Home Buyers' Plan and up to $40,000 from your FHSA, in addition to claiming the BC Property Transfer Tax exemption. For couples where both qualify, the combined maximum is $120,000 from RRSPs and $80,000 from FHSAs, $200,000 in total tax-advantaged down payment funds.

What changed for first-time buyers in BC in 2025 and 2026?

Three significant changes came into effect: (1) The 30-year amortization became available on CMHC-insured mortgages for first-time buyers purchasing new construction (August 2024), then expanded to all insured first-time buyer purchases (December 2024). (2) The insured mortgage cap was raised from $1 million to $1.5 million (December 2024), allowing insured mortgages on higher-priced properties. (3) The GST New Housing Rebate was expanded, homes up to $1 million now qualify (Royal Assent March 12, 2026), up from the previous $450,000 threshold, potentially saving first-time buyers up to $50,000 on new construction.

Is it a good time to buy a home in the Fraser Valley in 2026?

The Fraser Valley's sales-to-active ratio was around 11% as of March 2026, placing it in buyer's market territory (under 12% is buyers' advantage). Condo and townhouse prices are softer than their 2022 peak. For buyers who can qualify and are planning to stay 5+ years, the combination of buyer-friendly conditions, a 30-year amortization on insured mortgages, and the 2026 GST rebate expansion makes the math more workable than it was in 2023 or 2024. That said, timing the market is not reliable, buy when your finances are ready, not based on a rate prediction.

What is the BC Property Transfer Tax exemption for first-time buyers?

BC's first-time home buyer PTT exemption gives a full exemption on the first $500,000 of value when the home's fair market value is $835,000 or less (effective April 1, 2024). There is a partial exemption on homes priced between $835,000 and $860,000. For new construction, the thresholds are higher: full exemption up to $1,100,000, partial between $1,100,000 and $1,150,000. Personal eligibility rules also apply, you must be a Canadian citizen or permanent resident, have never owned a home anywhere in the world, and intend to occupy the property as your principal residence.

How does the stress test affect first-time buyers in Fraser Valley in 2026?

The federal mortgage stress test requires lenders to qualify you at the higher of your actual contract rate plus 2%, or the Bank of Canada's benchmark rate (currently 5.25%). If you're getting a 4.5% mortgage, you qualify at 6.5%. This reduces maximum purchase price by roughly 15 to 20% compared to qualifying at the contract rate alone. For a $700,000 purchase you need approximately $135,000 to $145,000 in household income. The stress test applies to all federally regulated lenders regardless of down payment size.

Should I buy a condo or townhouse as a first-time buyer in the Fraser Valley?

Condos typically cost $150,000 to $250,000 less than comparable townhouses in the Fraser Valley, which lowers the down payment hurdle significantly. Townhouses usually have no neighbours above or below, outdoor space, and lower strata fees on average. The right choice depends on budget, lifestyle, and resale horizon. Buyers with under $60,000 saved generally start with a condo; buyers who can reach a $80,000 to $100,000 down payment have townhouse options in Langley, Abbotsford, and Chilliwack. Many first-time buyers start in a condo and move to a townhouse 5 to 7 years later.

What was the CMHC First-Time Home Buyer Incentive?

The First-Time Home Buyer Incentive (FTHBI) was a federal shared-equity program introduced by the Government of Canada in September 2019. It provided eligible buyers with 5% or 10% of their home's purchase price toward a down payment in exchange for a corresponding equity stake. The program was officially discontinued on March 21, 2024.

Is the CMHC First-Time Home Buyer Incentive still accepting applications in 2026?

No, the program is no longer accepting new or resubmitted applications. The final deadline for submissions was March 21, 2024, and no new approvals were issued after March 31, 2024. This guide is written for existing participants who already hold these shared-equity loans.

When must the FTHBI shared-equity mortgage be repaid?

The incentive must be repaid in full after 25 years from the original advance date, or when the property is sold, whichever occurs first. You can also choose to make a voluntary full repayment at any time prior to these events without prepayment penalties.

How is the repayment amount for the FTHBI calculated?

Repayment is based on the fair market value of your home at the time of repayment, not the original amount you borrowed. If you received a 5% incentive, you repay 5% of the home's value at repayment, subject to the 8% annual appreciation/depreciation cap implemented in June 2022.

What is the 8% per annum limit on FTHBI gains and losses?

The 8% limit is a cap on the government's share of appreciation or depreciation, calculated as simple interest per year (8% per annum, non-compounded) on the original incentive amount. It protects buyers from runaway property appreciation and limits the government's shared loss on depreciated sales.

Is the 8% appreciation cap retroactive for older agreements?

Yes. The CMHC retroactively applied the 8% annual appreciation cap to all program agreements since the launch of the program in September 2019. However, the 8% depreciation loss cap only applies to agreements signed on or after June 1, 2022.

Does refinancing my first mortgage trigger FTHBI repayment?

No, refinancing your first mortgage does not automatically trigger mandatory repayment of the incentive, provided the principal amount is not increased. If you are adding equity takeouts or increasing the loan amount, the program administrator will require full repayment first.

What other events trigger mandatory repayment of the incentive?

Mandatory repayment is triggered by a property sale, the end of the 25-year term, porting your mortgage to a new home, a change in property status (converting to rental), or certain title transfers such as buying out a co-borrower during a relationship dissolution.

How do I initiate a voluntary early repayment of the FTHBI?

To repay voluntarily, you must obtain a professional appraisal from an independent appraiser to establish your home's fair market value. You then submit the appraisal and a repayment request to the Program Administrator for approval and payout coordination.

What are the best alternatives to the FTHBI for buyers in 2026?

First-time buyers in 2026 should utilize active federal and provincial programs, including the First Home Savings Account (FHSA), the RRSP Home Buyers' Plan (which allows withdrawals up to $60,000), the BC Property Transfer Tax exemption, and the federal GST rebates.

When was the CMHC First-Time Home Buyer Incentive discontinued?

The program officially stopped accepting new or resubmitted applications after midnight ET on March 21, 2024. No new approvals were granted after March 31, 2024, bringing the program to a complete close for new buyers.

Why did the government retire the FTHBI program?

The FTHBI was retired due to low participation rates. Strict income limits and borrowing constraints made it virtually impossible for buyers to purchase homes in high-cost regions like Vancouver and the Fraser Valley.

What were the eligibility limits that made the FTHBI ineffective?

The program capped qualifying household incomes at $120,000 (or $150,000 in Vancouver/Toronto) and limited borrowing to 4 times (or 4.5 times) that income. In markets where townhomes exceeded $700,000, these caps were too low to be useful.

What is the First Home Savings Account (FHSA) contribution room in 2026?

The FHSA allows you to contribute up to $8,000 per year, up to a lifetime cap of $40,000. Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home purchase are tax-free (like a TFSA).

How much can I withdraw from my RRSP under the Home Buyers' Plan (HBP) in 2026?

Under the HBP, you can withdraw up to $60,000 tax-free from your RRSP to buy or build a qualifying home. This limit was increased from $35,000 in Budget 2024 for all withdrawals made after April 16, 2024.

Can a couple combine their FHSA and HBP room on the same home?

Yes. An eligible couple can combine their limits, allowing them to stack up to $80,000 from their FHSAs and up to $120,000 from their RRSPs under the HBP, totaling up to $200,000 in tax-advantaged down-payment money.

What are the price limits for the BC First-Time Home Buyer PTT exemption in 2026?

A full Property Transfer Tax exemption applies to resale homes with a fair market value of $835,000 or less, with the exemption calculated on the first $500,000 of the price. The exemption phases out partially up to $860,000.

What is the new First-Time Home Buyers' GST/HST Rebate?

Introduced via Bill C-4 (Royal Assent March 12, 2026), this rebate fully eliminates the 5% federal GST on new-build home purchases up to $1,000,000 for first-time buyers, phasing out on a straight line up to $1,500,000.

Does the Home Buyers' Amount tax credit still exist in 2026?

Yes. First-time buyers can claim a non-refundable tax credit of up to $10,000 on line 31270 of their federal income tax return in the year of purchase, which provides up to $1,500 in direct tax savings.

How does the FHSA interact with my primary mortgage pre-approval?

Lenders treat FHSA withdrawals as 'own resources' for your down payment. Having these funds settled in an FHSA allows you to secure pre-approval, and the tax deductions can help build your down payment faster.

Why the CMHC FTHBI Was Retired & 2026 Buyer Alternatives

The retirement of the First-Time Home Buyer Incentive (FTHBI) in early 2024 came as no surprise to the real estate industry. While the program was launched with high expectations in the fall of 2019, it suffered from structural limitations that made it virtually unusable in Canada's most competitive housing markets. Today's programs focus on helping you save tax-free cash and reducing your closing costs, without giving the government a share in your home's equity.

Book a no-pressure chat Browse homes Michael Goering, BC-licensed REALTOR®Updated July 7, 2026 · 6 min read

01Why the FTHBI program was discontinued 02The 2026 first-time buyer program stack 03Frequently Asked Questions 04Sources & Reference Documents

Why the FTHBI program was discontinued

The FTHBI was designed as a shared-equity model: the government contributed 5% or 10% toward the buyer's down payment, in exchange for a matching share of the home's future value. However, the program's strict eligibility criteria created a double-bind for buyers:

1. Inflexible Income Caps

To qualify, a household's total income could not exceed $120,000 (raised to $150,000 only in Vancouver, Victoria, and Toronto). In the Fraser Valley, where a typical household income for working couples often exceeds these levels, many buyers were locked out of the program before they even found a property.

2. The Borrowing Constraint (The 4x / 4.5x Rule)

The program limited the buyer's total borrowing (first mortgage plus the FTHBI second mortgage) to 4 times their qualifying income (or 4.5 times in Vancouver, Victoria, and Toronto).

The Math: A buyer with a household income of $120,000 was restricted to a maximum purchase price (including down payment) of roughly $500,000.
The Reality: In Surrey and Langley, the benchmark price for a townhouse has sat well above $750,000 for years. The only properties available under the program's cap were small, older one-bedroom condos, not the townhomes or family-sized units that buyers actually needed.

Because the program was too restrictive to help buyers in BC's major urban centers, participation rates were low. The federal government officially discontinued the program, closing applications on March 21, 2024, and shifting resources to other housing initiatives.

The 2026 first-time buyer program stack

While the FTHBI is gone, the current landscape of first-time buyer programs is significantly stronger and more flexible than the shared-equity model ever was. Today's programs focus on helping you save tax-free cash and reducing your closing costs, without giving the government a share in your home's equity.

Here is the map of active programs that the FRIVE team helps buyers stack in 2026:

1. The First Home Savings Account (FHSA)

The FHSA is the most powerful down-payment saving tool available. It allows Canadian residents over 18 to save up to $8,000 per year, up to a $40,000 lifetime limit.

The Stack: Contributions are fully tax-deductible (reducing your year-end income tax bill), and all investment growth and withdrawals used to buy a qualifying home are completely tax-free. It combines the best features of an RRSP and a TFSA.

2. The RRSP Home Buyers' Plan (HBP)

The HBP allows you to withdraw funds from your Registered Retirement Savings Plan (RRSP) tax-free to use toward a down payment.

The Stack: The withdrawal limit sat at $35,000 for years, but Budget 2024 increased it to $60,000 for all withdrawals made after April 16, 2024. A couple can withdraw up to $120,000 combined. You have 15 years to repay the funds to your RRSP, starting five years after your first withdrawal.

3. The BC Property Transfer Tax (PTT) Exemption

BC's Property Transfer Tax is a major closing cost (1% on the first $200,000, 2% on the balance). The First-Time Home Buyers' Program provides relief:

The Stack: The Province raised the thresholds on April 1, 2024. Today, qualifying buyers get a full PTT exemption on homes valued at $835,000 or less (saving up to $14,700), with a partial exemption phasing out up to $860,000.

4. The New Federal First-Time Buyer GST Rebate

For those buying new construction (presales or newly built townhouses/condos), Bill C-4 (Royal Assent March 12, 2026) introduced a massive rebate:

The Stack: The rebate fully eliminates the 5% federal GST on new-build purchases up to $1,000,000, phasing out on a straight line up to $1,500,000. The maximum rebate is worth up to $50,000, drastically lowering the cost of new housing in the Fraser Valley.

We walk through the detailed eligibility and tax implications of these active programs on our BC Buyer Programs & Taxes (2026) guide.

Frequently Asked Questions

These are the common questions we receive from buyers comparing the retired FTHBI against current 2026 programs.

If I already have an FTHBI loan, can I still use the FHSA or HBP?

If you already own a home and have an active FTHBI loan, you are no longer considered a first-time home buyer for new registrations. You cannot open a new FHSA or make a first-time withdrawal under the HBP, as you currently own a principal residence.

Can a couple combine an FHSA and an RRSP HBP withdrawal?

Yes. The CRA confirms that an eligible buyer can withdraw from both their FHSA and their RRSP under the Home Buyers' Plan for the same home purchase, as long as they meet the specific withdrawal conditions for each program.

What is the minimum down payment for a townhouse in Surrey in 2026?

Under Canadian mortgage rules, the minimum down payment is 5% on the first $500,000 of the purchase price, and 10% on the portion between $500,000 and $1,000,000. For a $750,000 townhouse, the minimum down payment is $50,000.

Does the new GST rebate apply to resale properties?

No, the federal First-Time Home Buyers' GST/HST Rebate applies only to brand-new construction (presales, newly built townhomes, or low-rise condos) where GST is payable. It does not apply to standard resale properties.

How do I prove my first-time buyer status for the BC PTT exemption?

Your real estate lawyer or notary public will file a Property Transfer Tax return on your behalf at completion. You will sign a declaration confirming you have never owned a principal residence anywhere in the world and meet the BC residency rules.

Can I open an FHSA if I don't have the full $8,000 to contribute?

Yes. You should open the account even if you can only contribute a small amount. Opening the account starts your contribution room accrual, allowing you to carry forward up to $8,000 of unused room to the next calendar year.

Is the Home Buyers' Amount tax credit applied automatically?

No. You must claim the credit (line 31270) on your personal income tax return for the year you purchased your home. It is a non-refundable credit that reduces your taxes payable by up to $1,500.

What happens if I fail to repay my RRSP HBP withdrawal within 15 years?

Each year, 1/15th of the withdrawn amount must be repaid to your RRSP. If you fail to make the required repayment for a specific year, that year's portion is added to your taxable income for that year and taxed at your marginal rate.

Does BC have a first-time buyer program for detached homes?

The BC PTT First-Time Buyer Exemption applies to any residential property, including detached homes, provided the purchase price is under the $860,000 phase-out cap. Detached homes in the Fraser Valley typically exceed this price, so the exemption is mostly used for condos and townhouses.

Can permanent residents use the FHSA and HBP?

Yes. Both the FHSA and HBP are administered through the federal tax system and are available to Canadian residents for tax purposes, which includes permanent residents and temporary residents who file tax returns.

Sources & Reference Documents

CMHC FTHBI Repayment Hub Integrated program guidelines, calculations, and operational policies.

Questions we get

Frequently asked questions

The questions we hear most often from first-time buyers in actual FRIVE meetings.

When was the CMHC First-Time Home Buyer Incentive discontinued?: The program officially stopped accepting new or resubmitted applications after midnight ET on March 21, 2024. No new approvals were granted after March 31, 2024, bringing the program to a complete close for new buyers.
Why did the government retire the FTHBI program?: The FTHBI was retired due to low participation rates. Strict income limits and borrowing constraints made it virtually impossible for buyers to purchase homes in high-cost regions like Vancouver and the Fraser Valley.

Sources

Where these numbers come from

1First-Time Home Buyer Incentive Canada Mortgage and Housing Corporation. Accessed May 28, 2026.
2Putting home ownership back within reach Department of Finance Canada. Accessed May 28, 2026.
3First-time home buyers' Property Transfer Tax exemption Province of British Columbia. Accessed May 28, 2026.
4First Home Savings Account (FHSA) Canada Revenue Agency. Accessed May 28, 2026.

Tax thresholds, program limits, and rates change. We update this page when we notice a change. Before signing anything, verify the current figure with the linked source, or ask your mortgage broker.

Keep reading

Next in the guide

FTHBI Repayment Hub Index

Return to the main FTHBI Repayment Hub containing core documentation details.

Read

Detailed Repayment Guide

Read the comprehensive review of how to manage and repay the FTHBI loan.

Read

Repayment Calculations & Math Scenarios

See worked mathematical examples of the 8% simple interest gain and loss caps.

Read

The 8% Cap Policy Rules

Learn about the June 2022 policy update, compound vs. simple interest, and retroactivity.

Read

Triggers & Step-by-Step Payout Process

A complete list of mandatory triggers and how to submit an appraisal for voluntary payoff.

Read

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Why the CMHC FTHBI Was Retired & 2026 Buyer Alternatives

Why the FTHBI program was discontinued

1. Inflexible Income Caps

2. The Borrowing Constraint (The 4x / 4.5x Rule)

The 2026 first-time buyer program stack

1. The First Home Savings Account (FHSA)

2. The RRSP Home Buyers' Plan (HBP)

3. The BC Property Transfer Tax (PTT) Exemption

4. The New Federal First-Time Buyer GST Rebate

Frequently Asked Questions

If I already have an FTHBI loan, can I still use the FHSA or HBP?

Can a couple combine an FHSA and an RRSP HBP withdrawal?

What is the minimum down payment for a townhouse in Surrey in 2026?

Does the new GST rebate apply to resale properties?

How do I prove my first-time buyer status for the BC PTT exemption?

Can I open an FHSA if I don't have the full $8,000 to contribute?

Is the Home Buyers' Amount tax credit applied automatically?

What happens if I fail to repay my RRSP HBP withdrawal within 15 years?

Does BC have a first-time buyer program for detached homes?

Can permanent residents use the FHSA and HBP?

Sources & Reference Documents

Frequently asked questions

Where these numbers come from

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Why the FTHBI program was discontinued

1. Inflexible Income Caps

2. The Borrowing Constraint (The 4x / 4.5x Rule)

The 2026 first-time buyer program stack

1. The First Home Savings Account (FHSA)

2. The RRSP Home Buyers' Plan (HBP)

3. The BC Property Transfer Tax (PTT) Exemption

4. The New Federal First-Time Buyer GST Rebate

Frequently Asked Questions

If I already have an FTHBI loan, can I still use the FHSA or HBP?

Can a couple combine an FHSA and an RRSP HBP withdrawal?

What is the minimum down payment for a townhouse in Surrey in 2026?

Does the new GST rebate apply to resale properties?

How do I prove my first-time buyer status for the BC PTT exemption?

Can I open an FHSA if I don't have the full $8,000 to contribute?

Is the Home Buyers' Amount tax credit applied automatically?

What happens if I fail to repay my RRSP HBP withdrawal within 15 years?

Does BC have a first-time buyer program for detached homes?

Can permanent residents use the FHSA and HBP?

Sources & Reference Documents

Frequently asked questions

03What were the eligibility limits that made the FTHBI ineffective?

04What is the First Home Savings Account (FHSA) contribution room in 2026?

05How much can I withdraw from my RRSP under the Home Buyers' Plan (HBP) in 2026?

06Can a couple combine their FHSA and HBP room on the same home?

07What are the price limits for the BC First-Time Home Buyer PTT exemption in 2026?

08What is the new First-Time Home Buyers' GST/HST Rebate?

09Does the Home Buyers' Amount tax credit still exist in 2026?

10How does the FHSA interact with my primary mortgage pre-approval?

Where these numbers come from

Next in the guide

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