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.

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?

It depends on the home price. 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.

Can a couple combine all the federal programs?

Yes. Two qualifying first-time buyers can each contribute $40,000 to an FHSA (so $80,000 between them) and each withdraw $60,000 via the HBP ($120,000 between them), for $200,000 of tax-advantaged down-payment money. Both can also each claim a portion of the BC PTT exemption on a jointly purchased home.

Do the FHSA and HBP withdrawals count as part of the down payment for the bank?

Yes. Lenders treat both FHSA qualifying withdrawals and HBP withdrawals as your own funds, not borrowed money. They show up on the down-payment confirmation just like savings from a chequing account. Some lenders still want to see the withdrawal trail and 90-day source-of-funds documentation.

What GST rebate is available on a new build in 2026?

There are now two federal GST programs. The older GST/HST New Housing Rebate refunds 36% of the 5% GST up to a $6,300 cap on homes priced below $450,000, and it phases out to zero above that threshold. As of March 12, 2026, a new program, the First-Time Home Buyers' GST/HST Rebate, fully eliminates the GST on new builds priced up to $1,000,000 for qualifying first-time buyers (the rebate phases out on a straight line up to $1,500,000). The maximum new rebate is up to $50,000. 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, and it is significantly larger than the old program.

Is there still a Home Buyers' Tax Credit (HBTC)?

Yes. The federal HBTC gives a non-refundable tax credit of $1,500 (15% of $10,000) on your tax return in the year you buy your first home. You claim it on Schedule 1, line 31270. Both spouses can split the claim but the total can't exceed $1,500.

Can I use the BC Newly Built Home Exemption AND the first-time buyer exemption?

Not on the same purchase. They're alternative paths to PTT relief, pick whichever saves more. The Newly Built Home Exemption has higher price thresholds (full exemption up to $1,100,000) and you don't have to be a first-time buyer, so for a new construction townhouse over $835K, this usually wins.

Do I qualify for these incentives if I co-buy with a parent or sibling?

Federally, yes, you qualify for your portion of the HBP/FHSA/HBTC as long as you personally are a first-time buyer, even if your co-buyer isn't. For BC PTT, you can claim a partial exemption proportional to your ownership interest, e.g., if you own 50% of a home and qualify, your half of the PTT is exempted (up to the $8K cap on your share).

What's the catch with the HBP repayment?

The repayment period is 15 years, starting in the second calendar year after your withdrawal. If you don't repay the required minimum (1/15 of the original withdrawal) in a given year, that amount gets added to your taxable income for that year. For a $60,000 HBP withdrawal, that's $4,000 per year you need to put back into your RRSP, manageable, but it does eat into your annual RRSP contribution room.

Are there BC-only programs beyond the PTT exemption?

Two worth knowing: the BC Home Owner Grant (annual property-tax credit, $570 in the Lower Mainland for primary residences valued under the threshold), and BC Hydro's Home Renovation Rebate program if you're upgrading insulation, windows, or heating after buying. Both are post-purchase, not down-payment helpers.

How much can a first-time buyer expect to save total across all incentives?

It depends on whether the home is new construction or resale, and the purchase price. On a $700,000 resale townhouse: $8,000 (PTT exemption) + $1,500 (HBTC) = $9,500 in direct savings. Add the tax deduction on FHSA contributions (~$10,000 to $15,000 in tax over several years at a marginal rate around 33%) and the HBP's value (tax-deferred until repaid, effectively free at the moment of purchase) and the total benefit reaches $30,000+ in real economic value over the path to purchase. On a $700,000 new build, a qualifying first-time buyer can add the 2026 First-Time Buyers' GST rebate, the GST on a $700,000 new home is $35,000 and the rebate eliminates it entirely. That puts the total benefit meaningfully higher.

First-Time Home Buyer Incentives in BC: Every 2026 Program, With Dollar Values

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.

Book a no-pressure chat Browse homes Michael Goering, BC-licensed REALTOR®Updated July 12, 2026 · 8 min read

01The five incentives that still exist in 2026 021. BC PTT exemption, up to $8,000 032. RRSP Home Buyers' Plan, up to $60,000 043. First Home Savings Account (FHSA), up to $40,000 054. Home Buyers' Tax Credit, $1,500 065. GST rebate on new builds, up to $50,000 in 2026 07How they stack on a typical Fraser Valley first home 08What's not on this list (and why)09Further reading

The five incentives that still exist in 2026

Before we get into each one, a clean-up note. 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).

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, no PST on 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.

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?: It depends on the home price. 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.

Sources

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.

Keep reading

Next in the guide

CMHC FTHBI Repayment Guide

Navigating repayment calculations, the 8% simple interest cap, and voluntary payoff process.

Read

RRSP Home Buyers' Plan (HBP), the $60K rules

How the withdrawal, repayment, and 90-day contribution rules actually work.

Read

First Home Savings Account (FHSA)

The single best account for anyone planning to buy a first home in 2 to 5 years.

Read

BC Property Transfer Tax exemption explained

$835K and $860K thresholds, partial exemption math, and how to claim it.

Read

First-Time Home Buyer BC: The 2026 Playbook

The full overview, eligibility, costs, timeline, and what we tell every buyer.

Read

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First-Time Home Buyer Incentives in BC: Every 2026 Program, With Dollar Values

The five incentives that still exist in 2026

1. BC PTT exemption, up to $8,000

2. RRSP Home Buyers' Plan, up to $60,000

3. First Home Savings Account (FHSA), up to $40,000

4. Home Buyers' Tax Credit, $1,500

5. GST rebate on new builds, up to $50,000 in 2026

How they stack on a typical Fraser Valley first home

What's not on this list (and why)

Further reading

Frequently asked questions

Where these numbers come from

Next in the guide

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The five incentives that still exist in 2026

1. BC PTT exemption, up to $8,000

2. RRSP Home Buyers' Plan, up to $60,000

3. First Home Savings Account (FHSA), up to $40,000

4. Home Buyers' Tax Credit, $1,500

5. GST rebate on new builds, up to $50,000 in 2026

How they stack on a typical Fraser Valley first home

What's not on this list (and why)

Further reading

Frequently asked questions

03Can a couple combine all the federal programs?

04Do the FHSA and HBP withdrawals count as part of the down payment for the bank?

05What GST rebate is available on a new build in 2026?

06Is there still a Home Buyers' Tax Credit (HBTC)?

07Can I use the BC Newly Built Home Exemption AND the first-time buyer exemption?

08Do I qualify for these incentives if I co-buy with a parent or sibling?

09What's the catch with the HBP repayment?

10Are there BC-only programs beyond the PTT exemption?

11How much can a first-time buyer expect to save total across all incentives?

Where these numbers come from

Next in the guide

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Stop paying off
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