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.

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

Up to $60,000 per person, tax-free. The limit was raised from $35,000 to $60,000 effective April 16, 2024 and is still $60,000 in 2026. For couples who are both first-time buyers, that's $120,000 between two RRSPs.

Who counts as a first-time buyer for HBP purposes?

Anyone who hasn't lived in a home they (or their spouse/common-law partner) owned in the current calendar year or the previous four calendar years. So if you sold your last home in 2020 and have rented since, you regain first-time buyer status in 2025. The definition is more generous than the BC PTT exemption.

What is the 90-day rule?

Contributions to your RRSP must remain in the account for at least 90 days before they can be withdrawn under the HBP. Otherwise, those contributions lose their tax-deduction. If you contribute $30,000 today and try to withdraw it for HBP next week, you can, but you lose the deduction on that contribution. Plan the contribution timing to clear 90 days before closing.

When do I have to repay HBP withdrawals?

Repayment starts in the second calendar year after the year of withdrawal. So if you withdraw in 2026, your first required repayment is for the 2028 tax year (filed in 2029). The total repayment period is 15 years. Each year you must put back at least 1/15 of the original withdrawal into your RRSP, about $4,000/year on a full $60K withdrawal.

What happens if I don't make the required HBP repayment?

The amount you fail to repay gets added to your taxable income for that year. So a missed $4,000 HBP repayment becomes $4,000 of taxable income, taxed at your marginal rate. It doesn't trigger penalties or interest, but it does mean you pay tax twice on that money (once on income that funded the RRSP contribution, once when the unrepaid amount becomes income). Costly.

Can my spouse and I both use the HBP on the same purchase?

Yes. Each spouse can withdraw up to $60,000 from their own RRSP for the same home purchase, for a combined $120,000. Both must be first-time buyers under CRA's definition. The home becomes both your principal residences.

Can I use the HBP on a home outside BC?

Yes, the HBP works for any qualifying home in Canada. The home must become your principal residence within one year of buying, and you must intend to occupy it as your principal residence.

What's the difference between the HBP and the FHSA?

The HBP is a loan from your own RRSP, tax-deferred, repayable over 15 years. The FHSA is a separate account that combines RRSP-style tax deductions on contributions with TFSA-style tax-free withdrawal. The FHSA is generally better if you're starting from scratch; the HBP is useful if you already have substantial RRSP savings. Most buyers we work with use both.

Can I take less than the maximum $60,000?

Yes. Withdraw any amount up to $60,000. Smaller withdrawals mean smaller annual repayment obligations. We've worked with first-time buyers who pulled $20,000 just to clear their down-payment threshold rather than maxing it out, because they didn't want the 15-year repayment commitment.

Can I use the HBP twice?

Yes, if you fully repay the first withdrawal and re-qualify as a first-time buyer. The four-year rule resets if you've sold your home and haven't lived in an owned home for four calendar years. That said, you can't have an outstanding HBP balance when you make a second withdrawal, the first one has to be fully repaid first.

Does HBP money count as 'my own funds' for the bank?

Yes. Lenders treat HBP withdrawals as your own funds for down-payment purposes, not as borrowed money. You'll need to show the withdrawal trail (RRSP statement + closing trust account confirmation), most lenders also want a 90-day source-of-funds history to confirm the money was legitimately in your RRSP.

What if my home purchase falls through after I've withdrawn?

You can recontribute the funds to your RRSP without penalty if the purchase falls through, as long as you do it by December 31 of the year after the year of withdrawal. After that, the unrepaid amount gets added to your taxable income. Tell your accountant immediately if your purchase doesn't close.

The RRSP Home Buyers' Plan (HBP) in 2026: The $60,000 Rules

The Home Buyers' Plan lets a first-time buyer withdraw up to $60,000 from their RRSP without immediate income tax, repayable into your RRSP over 15 years starting in the second year after withdrawal. The maximum jumped from $35,000 to $60,000 on April 16, 2024 and that's still the number in 2026. Here's how it actually works, the 90-day rule, the repayment math, and where the HBP fits next to the FHSA for a Fraser Valley first home.

Book a no-pressure chat Browse homes Michael Goering, BC-licensed REALTOR®Updated May 25, 2026 · 7 min read

01What is the RRSP Home Buyers' Plan?02How much can you withdraw from your RRSP under the Home Buyers' Plan?03What is the 90-day RRSP rule for the Home Buyers' Plan?04How do you repay the RRSP Home Buyers' Plan withdrawal?05Should you use the RRSP Home Buyers' Plan or the FHSA first?06How do you actually withdraw from your RRSP using the Home Buyers' Plan?07When is the RRSP Home Buyers' Plan the wrong choice?08Further reading

What is the RRSP Home Buyers' Plan?

The HBP is a CRA-administered program that lets you withdraw funds from your RRSP without triggering the normal income tax that RRSP withdrawals create, on the condition that the money is used to buy or build a qualifying first home and that you repay the withdrawal back into your RRSP over 15 years (CRA). Think of it as a tax-deferred loan from yourself, useful if you've been steadily contributing to an RRSP and need a big lump sum for closing.

How much can you withdraw from your RRSP under the Home Buyers' Plan?

The HBP withdrawal limit was $25,000 from 2009 to 2019, $35,000 from 2019 to April 2024, and has been $60,000 per person since April 16, 2024. As of May 2026, the limit is still $60,000 and there are no announced changes. For a married or common-law couple who are both first-time buyers under CRA's definition, that's a $120,000 combined withdrawal, often enough to put 20% down on a Surrey or Langley townhouse and skip CMHC insurance entirely.

What is the 90-day RRSP rule for the Home Buyers' Plan?

Contributions to your RRSP must sit in the account for at least 90 days before you can withdraw them under the HBP without losing the tax deduction. This is the rule we see first-time buyers trip over most often. The scenario: someone gets a big bonus in February, contributes $50,000 to their RRSP, then tries to withdraw it for an HBP withdrawal in March for a quick April closing. Legally, the withdrawal works, but the $50,000 contribution no longer counts as a tax-deductible RRSP contribution.

The fix: if you're planning an HBP-funded purchase, do your large RRSP contribution at least 90 days before the planned closing. If timing is tight, talk to your mortgage broker about gift-letter or other down-payment sources for the gap.

How do you repay the RRSP Home Buyers' Plan withdrawal?

Repayment starts in the second calendar year after the year of your withdrawal. If you withdraw on March 1, 2026, your first required repayment is for the 2028 tax year (filed in spring 2029). The annual minimum is 1/15 of the original withdrawal amount. For a $60,000 HBP, that's $4,000/year for 15 years.

How repayment works in practice: you make a regular contribution to your RRSP during the year, then on your tax return you designate part of that contribution as an HBP repayment (it doesn't get the tax deduction a normal RRSP contribution would, because you already got the deduction when the money was first contributed). The unused deduction stays as available room.

If you miss the minimum repayment in a given year, the shortfall gets added to your taxable income. So a missed $4,000 repayment becomes $4,000 of taxable income at your marginal rate at a 33% rate, that's $1,320 of tax. Not catastrophic, but worth avoiding. Set up an automatic monthly RRSP contribution and you'll never miss.

Should you use the RRSP Home Buyers' Plan or the FHSA first?

If you have to choose, the FHSA wins for most first-time buyers. Here's the head-to-head:

Tax treatment: Both let you deduct contributions. The FHSA also lets you withdraw tax-free without repayment; the HBP requires 15-year repayment.
Annual room: FHSA is $8,000/year, max $40,000 lifetime. HBP is one-shot up to $60,000.
Flexibility: FHSA can also be moved to your RRSP if you don't end up buying. HBP requires actual home purchase or you repay/reabsorb the withdrawal.

The realistic answer for most first-time buyers we work with: use both. Max the FHSA first (better tax treatment), then top up with HBP. Together they give you up to $100,000 per person of tax-advantaged down-payment money, enough to put substantial down on a Fraser Valley first home without scrambling.

How do you actually withdraw from your RRSP using the Home Buyers' Plan?

Confirm you're a first-time buyer under CRA's definition (haven't owned a home in current year + previous 4 calendar years).
Have a written agreement to buy or build a qualifying home in Canada.
Complete Form T1036 (Home Buyers' Plan Request to Withdraw Funds from an RRSP) and submit it to the financial institution that holds your RRSP.
The institution issues a T4RSP slip showing the HBP withdrawal in Box 27. They don't withhold tax, that's the point.
The funds get transferred to your account (or directly to your lawyer in trust for closing).
You report the HBP withdrawal on Schedule 7 of your tax return for the year of withdrawal.
Starting year 2 after withdrawal, designate 1/15 of the withdrawal as your annual HBP repayment on Schedule 7.

Most banks can process the withdrawal in 5 to 10 business days once the T1036 is signed. Don't wait until the week before closing.

When is the RRSP Home Buyers' Plan the wrong choice?

Three situations where pulling from your RRSP isn't the right call:

You have less than 5 to 10 years of working life left. The 15-year repayment runs into retirement. The unrepaid balance becomes taxable income at exactly the moment you want to minimize income.
Your RRSP holdings would force a sale at a loss. If the market is down and your equity positions are underwater, pulling now locks in losses. Better to use GIC or cash-equivalent contributions to your RRSP timed to the 90-day window, then withdraw those.
You can't realistically afford the repayments. $4,000/year on top of a new mortgage is a real commitment. If the answer is "I'll figure it out later," that's the wrong answer.

Frequently asked questions

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

How much can I withdraw from my RRSP under the Home Buyers' Plan in 2026?: Up to $60,000 per person, tax-free. The limit was raised from $35,000 to $60,000 effective April 16, 2024 and is still $60,000 in 2026. For couples who are both first-time buyers, that's $120,000 between two RRSPs.
Who counts as a first-time buyer for HBP purposes?: Anyone who hasn't lived in a home they (or their spouse/common-law partner) owned in the current calendar year or the previous four calendar years. So if you sold your last home in 2020 and have rented since, you regain first-time buyer status in 2025. The definition is more generous than the BC PTT exemption.

Sources

Where these numbers come from

1The Home Buyers' Plan Canada Revenue Agency. Accessed May 25, 2026.
2How to make withdrawals from your RRSPs under the Home Buyers' Plan Canada Revenue Agency. Accessed May 25, 2026.
3How to repay the amounts withdrawn from your RRSPs under the HBP Canada Revenue Agency. Accessed May 25, 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

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FHSA: the better account for most first-time buyers

Tax-deductible going in, tax-free coming out, no repayment.

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How much down payment you actually need

Where the HBP fits in the 5/10/20 math for Fraser Valley homes.

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Every BC and federal incentive in one place

PTT, HBP, FHSA, GST rebate, HBTC, values and how they stack.

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First-Time Home Buyer BC: The 2026 Playbook

The full overview, eligibility, costs, timeline, and our recommended order.

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The RRSP Home Buyers' Plan (HBP) in 2026: The $60,000 Rules

What is the RRSP Home Buyers' Plan?

How much can you withdraw from your RRSP under the Home Buyers' Plan?

What is the 90-day RRSP rule for the Home Buyers' Plan?

How do you repay the RRSP Home Buyers' Plan withdrawal?

Should you use the RRSP Home Buyers' Plan or the FHSA first?

How do you actually withdraw from your RRSP using the Home Buyers' Plan?

When is the RRSP Home Buyers' Plan the wrong choice?

Further reading

Frequently asked questions

Where these numbers come from

Next in the guide

Stop paying off
someone else's mortgage.

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What is the RRSP Home Buyers' Plan?

How much can you withdraw from your RRSP under the Home Buyers' Plan?

What is the 90-day RRSP rule for the Home Buyers' Plan?

How do you repay the RRSP Home Buyers' Plan withdrawal?

Should you use the RRSP Home Buyers' Plan or the FHSA first?

How do you actually withdraw from your RRSP using the Home Buyers' Plan?

When is the RRSP Home Buyers' Plan the wrong choice?

Further reading

Frequently asked questions

03What is the 90-day rule?

04When do I have to repay HBP withdrawals?

05What happens if I don't make the required HBP repayment?

06Can my spouse and I both use the HBP on the same purchase?

07Can I use the HBP on a home outside BC?

08What's the difference between the HBP and the FHSA?

09Can I take less than the maximum $60,000?

10Can I use the HBP twice?

11Does HBP money count as 'my own funds' for the bank?

12What if my home purchase falls through after I've withdrawn?

Where these numbers come from

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