First-Time Home Buyer Incentives in BC: What Fraser Valley Buyers Qualify For in 2026
There are five real first-time buyer programs in BC in 2026. The biggest news: a new federal GST rebate (up to $50,000 on new builds under $1M) that makes new-construction far more accessible than it was a year ago. Add the FHSA, HBP, BC PTT exemption, and the Home Buyers' Tax Credit and the combined value can reach $60,000+ on a new-build purchase. The shared-equity program everyone Googles (FTHBI) was discontinued in March 2024. Here's what each program is actually worth, who qualifies, and how they stack.
The five incentives that still exist in 2026
Before we get into each one, a clean-up note. There is no single program called a "first-time home buyer grant" in BC. If you're searching for exactly that, see our plain-English breakdown of what people usually mean by that phrase before you read on. What actually exists is a stack of separate programs. The federal First-Time Home Buyer Incentive (the shared-equity program where CMHC took a 5 to 10% second mortgage on your home in exchange for sharing in its appreciation or depreciation) ended on March 21, 2024 and is no longer accepting applications. If a blog post is telling you to apply, the post is two years out of date. The five programs that actually exist in 2026 are:
- BC Property Transfer Tax (PTT) first-time buyer exemption, up to $8,000 saved on a qualifying home of $835,000 or less.
- RRSP Home Buyers' Plan (HBP), up to $60,000 tax-free withdrawal from your RRSP, repayable over 15 years.
- First Home Savings Account (FHSA), $8,000/year of contribution room, $40,000 lifetime, tax-deductible going in, tax-free coming out.
- Home Buyers' Tax Credit (HBTC), $1,500 non-refundable federal tax credit in the year of purchase.
- GST / First-Time Buyers' GST Rebate, the original New Housing Rebate applies to new builds under $450,000 (up to $6,300); the new 2026 First-Time Home Buyers' GST/HST Rebate eliminates the full GST on new builds up to $1,000,000 for qualifying first-time buyers (up to $50,000).
1. BC PTT exemption, up to $8,000
The single most important number for a first-time Fraser Valley buyer. Full exemption on homes valued at $835,000 or less; partial exemption phases out by $860,000. Above $860K, you pay full PTT (1% on the first $200K + 2% to $2M). Eligibility is strict: Canadian citizen or PR, 12 months of BC residency before registration (or two BC tax returns in the last 6 years), never owned a principal residence anywhere globally, move in within 92 days, live in the home a year. The province does audit, buyers who sublet the entire property (or even the basement) before the 12-month anniversary have had the exemption clawed back. Plan to occupy the full home for at least a year before renting any portion. (Province of BC.)
2. RRSP Home Buyers' Plan, up to $60,000
Lifetime maximum withdrawal limit was raised from $35,000 to $60,000 on April 16, 2024 (CRA). The 90-day rule still applies: funds must be in your RRSP for at least 90 days before the withdrawal, or the contribution loses its tax deduction. Repayment starts in the second calendar year after withdrawal and runs 15 years, roughly $4,000/year on a full $60K withdrawal. Treat the HBP as a tax-deferred loan from yourself, not free money. The biggest risk we see: people withdraw, then can't keep up with annual repayments while also paying a mortgage, and the unpaid balance gets taxed as income.
3. First Home Savings Account (FHSA), up to $40,000
If we could change one thing about Canadian financial literacy, it would be making the FHSA as well-known as the TFSA. The FHSA combines the best of an RRSP (tax-deductible contributions) with the best of a TFSA (tax-free withdrawal). $8,000/year of contribution room, up to $40,000 lifetime. Unused room carries forward (max $8,000 carryforward per year). You can hold investments inside, stocks, ETFs, GICs, and any growth is also tax-free at withdrawal. The catch: you have 15 years from opening, or until age 71, to use it for a qualifying first-home purchase. Otherwise the funds get rolled to an RRSP. (CRA.)
4. Home Buyers' Tax Credit, $1,500
Easy money first-time buyers leave on the table because it's just a line on the tax return. Claim $10,000 on line 31270 of Schedule 1 in the year of purchase, get a 15% non-refundable credit, which works out to $1,500. Both spouses can split, but the combined claim is capped at $10,000 (so $1,500 total credit, not $3,000). It's the lowest-effort program in this list. Don't miss it.
5. GST rebate on new builds, up to $50,000 in 2026
There are two federal GST programs for new builds. Understanding which applies matters a great deal in 2026.
The original GST/HST New Housing Rebate (all buyers): Refunds 36% of the 5% GST on the first $350,000 of purchase price, capped at $6,300. Above $350,000 the rebate phases out, and above $450,000 the federal portion is gone entirely. For most Fraser Valley new builds priced above $450K, this rebate has been worth nothing for years.
The new 2026 First-Time Home Buyers' GST/HST Rebate (first-time buyers only): Bill C-4 received Royal Assent on March 12, 2026. This new rebate eliminates 100% of the 5% GST on new homes priced at or below $1,000,000 for qualifying first-time buyers. It phases out on a straight line up to $1,500,000. The maximum rebate is up to $50,000. The purchase agreement must be signed on or after March 20, 2025. (CRA, FTHB GST/HST Rebate.)
For most Fraser Valley first-time buyers purchasing a new condo or townhouse in the $450K to $1M range, this new 2026 rebate is the one that applies. On a $700,000 new townhouse, the GST is $35,000, and the new rebate eliminates it in full. On a $900,000 new condo in Surrey City Centre, the rebate is worth $45,000. Both numbers dwarf every other incentive on this list for new-construction purchases. The builder can credit the rebate at the time of transfer, or the buyer can apply directly with the CRA after closing, verify which approach your builder uses before signing.
This rebate does not apply to resale homes (which are generally GST-exempt to begin with). It also stacks with the BC Newly Built Home PTT exemption, the FHSA, and the HBP, they test different things (federal sales tax vs. provincial property transfer tax vs. registered accounts).
What the PTT exemption is worth at Fraser Valley entry-level prices
The BC PTT exemption is worth the most where it applies in full, and most Fraser Valley entry-level condos and townhouses fall well under the $835,000 threshold. Using FVREB's July 2026 sub-area benchmark prices (see the full July 2026 market update), here's what a first-time buyer saves on PTT alone at three of the most affordable entry points:
| Sub-area & type | July 2026 benchmark | PTT owed with exemption |
|---|---|---|
| Abbotsford condo | $380,900 | $0 (saves $5,618) |
| North Surrey condo | $408,300 | $0 (saves $6,166) |
| Abbotsford townhouse | $602,000 | $2,040 (saves $8,000) |
All three benchmark prices fall under the $835,000 full-exemption threshold. The exemption removes the tax on the first $500,000 of the price (1% on the first $200,000 and 2% on the next $300,000), so it saves up to $8,000, and any tax on the portion above $500,000 is still owed. Confirm your own purchase price and eligibility with our PTT calculator.
How they stack on a typical Fraser Valley first home
Let's price it. $700,000 new townhouse in Willoughby, two qualifying first-time buyers, each with a maxed FHSA ($40K each, $80K combined) and $20K of HBP RRSP each ($40K combined). Total tax-advantaged down-payment: $120,000 from FHSA + HBP. Add another $20K of non-registered savings. Down payment: $140K (20%), which means no CMHC insurance premium and a lower stress-test bar.
PTT: $700K is a new build, so the BC Newly Built Home Exemption applies instead of the first-time buyer PTT exemption, full exemption up to $1,100,000, so $0 PTT. HBTC: $1,500 tax credit in year of purchase. Tax deduction on the FHSA contributions over the years: roughly $26,000 of tax saved at a combined household marginal rate in the 33% range (CRA rate tables). GST on a $700,000 new build: $35,000, eliminated in full under the 2026 First-Time Buyers' GST Rebate if the purchase agreement was signed on or after March 20, 2025.
Total real value across the path to purchase, conservatively: $60,000+ in direct tax savings and credits on a new-build purchase, plus the structural advantage of avoiding CMHC insurance entirely. On a resale purchase (where the GST rebate doesn't apply), the figure is closer to $35,000+. That's why we tell every 25 to 30-year-old who asks about buying eventually to open the FHSA today, even if they're not sure when "eventually" is.
Note: The stacking math above uses illustrative assumptions (purchase price, FHSA contribution level, marginal rate, purchase structure). Your actual savings depend on your income, savings, and which home you buy. Confirm with your mortgage broker and accountant before making any financial decisions.
What's not on this list (and why)
A few programs you'll see promoted online that aren't useful for most first-time Fraser Valley buyers:
- BC First Time Home Buyers' Loan Program (BC HOME), the interest-free second-mortgage program was discontinued in 2018. Still surfaces in stale search results.
- Federal First-Time Home Buyer Incentive (FTHBI), discontinued March 2024.
- "Rent-to-own" pitches, not a government program, almost always a private deal with terms favouring the seller. Read carefully before signing.
Further reading
For a Fraser Valley-specific look at how these programs stack together, including the stacking math for a couple combining FHSA, HBP, and the PTT exemption on the same purchase, read the BC buyer programs journal guide.
Frequently asked questions
The questions we hear most often from first-time buyers in actual FRIVE meetings.
Is the federal First-Time Home Buyer Incentive (shared equity) still available in 2026?
- No. The federal government's First-Time Home Buyer Incentive (the shared-equity program where CMHC took a 5 to 10% co-investment) stopped accepting new applications on March 21, 2024 and is fully discontinued. If you are an existing owner looking to pay off your active loan, you can view calculations and process details in our CMHC FTHBI Repayment Guide (/first-time-buyers/fthbi). For new buyers, the HBP, FHSA, and BC PTT exemption are the active 2026 options.
What's the single biggest dollar-value incentive for a Fraser Valley first-time buyer?
- Under $835,000, the BC PTT exemption ($8,000 max) usually beats the FHSA tax deduction on a single year. Over the lifetime of saving, the FHSA is bigger, $40,000 of tax-deductible room plus tax-free growth and withdrawal. The HBP is technically the largest single number ($60,000/person) but it's a loan from your own RRSP, not free money. Which one is worth most to you depends on the home price.
Where these numbers come from
- 1First time home buyers' program Province of British Columbia. Accessed May 25, 2026.
- 2The Home Buyers' Plan Canada Revenue Agency. Accessed May 25, 2026.
- 3First Home Savings Account (FHSA) Canada Revenue Agency. Accessed May 25, 2026.
- 4Newly built home exemption Province of British Columbia. Accessed May 25, 2026.
- 5GST/HST new housing rebate Canada Revenue Agency. Accessed May 25, 2026.
- 6First-time home buyers' (FTHB) GST/HST rebate Canada Revenue Agency. Accessed June 3, 2026.
- 7Home Buyers' Tax Credit (HBTC), line 31270 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.
