Buyer's Guide
First-Time Home Buyer's Guide to BC
The programs, tax breaks, and lending rules that matter in 2026 — and how to stack them to buy sooner.
How much do you actually need down?
Canada's minimum down payment is tiered: 5% of the first $500,000 of the purchase price, plus 10% of anything between $500,000 and $1.5 million. Homes of $1.5 million or more need 20% down because mortgage default insurance isn't available above that price.
| Purchase Price | Minimum Down |
|---|---|
| $500,000 | $25,000 (5%) |
| $700,000 | $45,000 (6.4%) |
| $1,000,000 | $75,000 (7.5%) |
| $1,400,000 | $115,000 (8.2%) |
| $1,500,000+ | 20% |
With less than 20% down you'll add a CMHC insurance premium (2.8%–4.0% of the loan) to the mortgage. Run the numbers with our down payment calculator.
BC's Property Transfer Tax break
BC charges Property Transfer Tax on every purchase — 1% on the first $200,000 and 2% up to $2 million. First-time buyers who have lived in BC (or filed taxes here) and have never owned a principal residence anywhere get a major break:
- •Up to $500,000: pay no PTT at all.
- •$500,000–$835,000: save a flat $8,000 (the tax on the first $500,000).
- •$835,000–$860,000: the savings phase out gradually.
- •Buying new construction? A separate exemption eliminates PTT on newly built homes up to $1.1 million — no first-timer status required.
Estimate your exact bill with the BC transfer tax calculator.
Stack the savings programs
FHSA
$8,000/year, $40,000 lifetime. Deduct contributions like an RRSP, withdraw tax-free like a TFSA. Open one even with $50 — contribution room starts accruing.
RRSP Home Buyers' Plan
Withdraw up to $60,000 per buyer from your RRSP tax-free, repayable over 15 years. Combine with the FHSA on the same purchase.
Tax credits & rebates
The federal Home Buyers' Amount returns up to $1,500 at tax time, and a GST rebate introduced in 2025 can eliminate GST on newly built first homes up to $1 million.
New for first-time buyers: 30-year insured mortgages
Since December 15, 2024, first-time buyers can amortize an insured mortgage over 30 years instead of 25 (for a 0.20% premium surcharge). On a $600,000 mortgage at 4.5%, that's roughly $300 less per month — and because qualification is payment-based, it can also raise your maximum purchase price. We'll model both options in your pre-approval.
The stress test, in plain English
Every borrower must qualify at the higher of their contract rate + 2% or 5.25%, with housing costs capped at 39% of gross income and total debts at 44%. It's why the rate you pay and the rate you qualify at are different numbers. Check what you can afford with the affordability calculator, then let us shop 50+ lenders — different lenders treat overtime, bonuses, and self-employed income very differently, and the right match is often worth more than the lowest advertised rate.
First-time buyer FAQs
How much down payment do I need as a first-time buyer in BC?
The Canadian minimum is 5% of the first $500,000 of the purchase price plus 10% of the portion between $500,000 and $1.5 million. A $700,000 condo therefore needs at least $45,000 down. Homes of $1.5 million or more require 20% down.
Do first-time buyers pay Property Transfer Tax in BC?
Qualifying first-time buyers pay no Property Transfer Tax on homes up to $500,000 and save up to $8,000 on homes priced up to $835,000. The savings phase out between $835,000 and $860,000. Buying a newly built home? A separate exemption covers new homes up to $1.1 million.
What is the FHSA and how much can I contribute?
The First Home Savings Account lets you contribute $8,000 per year to a lifetime maximum of $40,000. Contributions are tax-deductible like an RRSP, and withdrawals for a qualifying first home are tax-free like a TFSA — the best of both. Couples can each open one, sheltering up to $80,000.
Can I use my RRSP to buy my first home?
Yes. The Home Buyers’ Plan lets each buyer withdraw up to $60,000 from their RRSP tax-free for a first home, repayable over 15 years. It can be combined with the FHSA for the same purchase.
Can first-time buyers get a 30-year mortgage in Canada?
Yes. Since December 15, 2024, first-time buyers (and anyone buying a newly built home) can take a 30-year amortization on an insured mortgage — a down payment under 20% — in exchange for a 0.20% insurance premium surcharge. The longer amortization lowers the monthly payment and can increase how much you qualify for.
How much income do I need to qualify?
Lenders cap your housing costs at 39% of gross income (GDS) and all debt payments at 44% (TDS), tested at the higher of your contract rate plus 2% or 5.25%. Our affordability calculator applies these rules, or we can pre-qualify you properly across 50+ lenders.
