Not all “first-time buyers” are created equal
If you’re thinking about buying your first home in BC, it’s important to know that “first-time homebuyer” doesn’t always mean what you might think. Different programs have different rules, and these can affect your eligibility for benefits and savings. Many buyers get tripped up by past ownership, timing, or even their partner’s history.
BC’s Property Transfer Tax (PTT) exemption
In BC, first-time buyers may qualify for a full or partial Property Transfer Tax exemption, saving thousands at closing. To qualify, you must be a Canadian citizen or permanent resident, at least 18, and have never owned an interest in a home anywhere in the world. Your spouse or partner must also meet these criteria during your time together. Unlike some programs, this is a strict “never-ever” rule, so past ownership anywhere—foreign or domestic—can disqualify you.
RRSP Home Buyers’ Plan and FHSA in BC
If you’ve owned a home in the past but haven’t lived in one in the last four years, you may still qualify for the RRSP Home Buyers’ Plan (HBP) or a First Home Savings Account (FHSA). Both programs let you use savings toward a down payment with favourable tax treatment. The FHSA is especially powerful because opening it early—even with a small contribution—starts your eligibility clock, giving you flexibility for your future purchase.
Why knowing your status matters
First-time buyer status can also impact your mortgage options. In BC, first-time buyers with mortgage insurance can access a 30-year amortization on resale and new homes, whereas repeat buyers are limited to 25 years for resale. Understanding the nuances of each program ensures you don’t leave money on the table and makes your homebuying journey smoother and more affordable.
Need help figuring out where you land? Give me a call on 604.725.1607 or email jordan@citywidemortgage.ca
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