First homes
Compare saving, withdrawal and tax-relief programs, then check your eligibility with the official source.
Ask about the FHSA and the rules for your situation.
Explore the Home Buyers’ Plan with your financial advisor.
Check property transfer tax and new-home rebate eligibility.
What the programs actually do
Reviewed September 30, 2026
Save · FHSA
Participation room in the year you open your first account
Build savings for an eligible first home. The lifetime limit is $40,000. Contributions are generally deductible; qualifying withdrawals are tax-free. Check opening eligibility, available room and withdrawal conditions separately.
CRA: FHSA rulesCRA: participation limitsWithdraw · Home Buyers’ Plan
Eligible withdrawals from your RRSPs
Use eligible retirement savings toward a qualifying home. The Home Buyers’ Plan has repayment obligations over 15 years. CRA currently says a first withdrawal in 2026 begins repayment in 2031 under temporary relief. Confirm your own schedule.
CRA: Home Buyers’ Plan eligibility & repaymentReduce tax · BC first-time buyer program
Potential property transfer tax exemption
Check the buyer, property and occupancy requirements. For qualifying purchases, the full benefit applies at a value up to $835,000 and exempts the first $500,000. Partial relief applies above $835,000 and below $860,000. This is not zero tax on every eligible purchase.
BC: eligibility and exemptionA worked example · BC transfer tax
Assuming full eligible ownership, a qualifying residential property and all program requirements are met:
Other taxes, fees and exemptions are excluded. Confirm eligibility and the final amount with your conveyancer. BC exemption amounts
CRA permits an Home Buyers’ Plan withdrawal and a qualifying FHSA withdrawal for the same home when both sets of conditions are met.
These are funding tools, not automatic grants. Keep purchase cash and later repayment obligations separate.
The basics
Think of the programs as tools that do different jobs. The First Home Savings Account (FHSA) helps you save. The Home Buyers’ Plan lets you borrow from your own RRSP. BC’s first-time buyer exemption lowers property transfer tax, the one-time provincial tax paid when a home is registered in your name. The federal home buyers’ amount is a tax credit you claim on your return.
Each tool uses its own test for “first-time buyer.” The CRA tests for the FHSA, the Home Buyers’ Plan and the home buyers’ amount look back over a four-year window. BC’s property transfer tax test is stricter: you must never have owned a principal residence anywhere in the world. So a buyer can pass the federal tests and still fail the BC one.
For a brand-new home, two more programs come into play: the federal first-time home buyers’ GST/HST rebate and BC’s newly built home exemption. Our GST on a new home guide covers the rebate.
Why it matters
The programs pay out at different moments. The BC exemption is claimed by your lawyer or notary on the transfer tax return at registration, so it lowers the cash needed on completion day. The home buyers’ amount only shows up when you file taxes. FHSA and Home Buyers’ Plan money must be withdrawn before completion, and the Home Buyers’ Plan needs a signed purchase agreement first. Build your budget around those dates, not around the total.
How it works
Write down every home each buyer has owned and lived in, with dates. Compare that history with the four-year federal test and BC’s lifetime test.
CRA gives $8,000 of participation room in the year you open your first FHSA, up to $40,000 over your lifetime. Room only starts once an account is open, so opening sooner builds room.
The current Home Buyers’ Plan withdrawal limit is $60,000. Each withdrawal needs Form T1036 and a written agreement to buy or build a qualifying home.
For the full BC exemption, the home must be worth $835,000 or less, sit on 0.5 hectares or less, hold only residential buildings, and be your principal residence.
BC requires you to move in within 92 days of registration and keep living there until the first anniversary. Book your move so you can meet that.
After the purchase, ask your tax preparer about claiming up to $10,000 under the home buyers’ amount on line 31270 of your return.
Avoid these
Owning a condo abroad years ago may still block the BC exemption, because BC looks at your whole lifetime. Check each program’s own wording.
CRA requires you to buy or build the home before October 1 of the year after the withdrawal. A long presale may not fit, so ask before withdrawing.
Missing BC’s 92-day move-in window can cost you the exemption. Plan rentals and leases around it.
Transfers from an RRSP into an FHSA use up participation room but are not deductible. Track both so you know your real room.
Example
A hypothetical single buyer who uses the full FHSA lifetime limit and the full Home Buyers’ Plan limit. Growth inside the accounts is ignored.
| FHSA contributions over five years | 5 × $8,000 = $40,000 |
|---|---|
| Home Buyers’ Plan withdrawal from RRSP | $60,000 |
| Total from registered accounts | $40,000 + $60,000 = $100,000 |
| Home Buyers’ Plan amount to repay later | $60,000 over 15 years |
CRA allows a qualifying FHSA withdrawal and an Home Buyers’ Plan withdrawal for the same home when both sets of rules are met. The Home Buyers’ Plan money is a loan to yourself. Run the totals through the down payment calculator.
Questions to ask
FAQ
Yes, if you meet both sets of conditions. CRA lets you make a qualifying FHSA withdrawal and an Home Buyers’ Plan withdrawal toward one qualifying home. Our FHSA vs RRSP guide compares them.
CRA says you qualify if you did not live in a home owned by you or your spouse or common-law partner, as your main home, in the current year before opening the account or the four years before. You must also be 18 or older and a resident of Canada.
You must be a Canadian citizen or permanent resident and meet a BC residency test. That means living in BC for a year before registration, or filing two BC tax returns in the last six years. You must never have owned a principal residence anywhere.
Yes. BC lists a partial exemption for homes worth more than $835,000 and less than $860,000. Your lawyer or notary works out the exact amount on the transfer tax return.
They are separate programs with separate thresholds. BC’s newly built home exemption is fully available up to $1,100,000. See our newly built home exemption guide before choosing.
Reviewed October 6, 2026. General information only, not legal, tax or financial advice. Rules change, so confirm the details for your purchase or sale with the official source and your own professionals.
Common questions
Choose a question for a short answer. Open the full guide for the details.
No. Each program has its own buyer, property, timing, and use requirements. Qualifying for one does not establish eligibility for another.
Not necessarily. The official first-time buyer program currently lists a $835,000 qualifying value threshold for the full benefit, but the exemption is on the first $500,000 when all conditions are met. Have your conveyancer confirm the calculation.
It depends on the program.
Confirm whether it affects completion costs, requires a separate application, or appears on a tax return before relying on it for cash flow.
Several programs may help an eligible first-time buyer, but they work in different ways.
Some support saving or withdrawals; others may reduce a tax cost. Each has its own conditions. Qualification for one does not automatically qualify you for another.
The FHSA is a registered savings account with rules for opening, contributions, deductions, and qualifying withdrawals.
Before moving money, check your eligibility and available participation room with the CRA and your financial institution.
The Home Buyers’ Plan permits qualifying RRSP withdrawals subject to its conditions and repayment rules.
Ask how an Home Buyers’ Plan withdrawal would affect your retirement savings, repayment obligations, and home-purchase funding timeline.
The BC program has buyer, property, and occupancy conditions.
The official page currently lists a qualifying property-value threshold of $835,000 for the full program benefit, with an exemption on the first $500,000 of the purchase price when all requirements are met.
This does not mean every eligible property up to $835,000 has zero property transfer tax. Partial relief and other conditions require a separate check.
CRA provides a separate eligibility and application process for this rebate on qualifying new homes.
Check buyer eligibility, agreement and construction dates, property value, and who applies. Ask whether an advertised developer price assumes a rebate assignment.
Ask your accountant about the home buyers’ amount and any other credits relevant to you.
BC’s newly built home property transfer tax exemption is a different program from its first-time buyer exemption; do not combine or substitute them without confirming the applicable rules.
An illustration of a possible benefit is not an eligibility decision.
Have your lawyer, accountant, and mortgage professional confirm the program requirements and the cash you need before completion.
Sources checked September 29, 2026. Confirm current rules and your individual eligibility before acting.
CRA: First Home Savings AccountCRA: Home Buyers’ PlanProvince of BC: First-time home buyers’ programCRA: First-time home buyers’ GST/HST rebateRelated reading
Financing
Compare the savings route, withdrawal rules and repayment commitment.
Read the guide
Buying costs
Understand transfer-tax relief before treating a new-home price as your final cost.
Read the guide