First time home buyer information

Congratulations on being one step closer to homeownership!

What is the fhsa?

The FHSA, is a hybrid financial tool that combines the benefits of the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP) aimed to assist first-time home buyers enter the real estate market. First-time homebuyers can benefit from tax-free returns, tax-deductible contributions, and tax-free withdrawals when purchasing a home. You must be a resident of Canada and cannot have purchased a home before. There are contribution limits, with a yearly limit of $8,000 and a lifetime limit of $40,000 that must be used before you turn 72 or 15 years after you open the account (whichever comes first). Once you open the account, any unused contribution room from the $8,000 yearly limit can be carried forward, allowing contributors to catch up in subsequent years. For example, if you contribute $4,000 in 2024, in 2025 you can contribute $12,000 toward the account. 

Here are a few links that may be helpful: 

FHSA - CRA Information

FHSA - RE/MAX Information

What is the property transfer tax (Ptt) exemption?

The first-time home buyers' program aims to alleviate expenses associated with purchasing your initial residence by offering a complete or partial exemption from property transfer tax, which is usually:

  • 1% of the purchase price on the first $200,000.
  • 2% of the purchase price that exceeds $200,000 up to and including $2,000,000.
  • 3% of the purchase price that exceeds $2,000,000 up to and including $3,000,000.
  • 5% of the purchase price that exceeds $3,000,000.
  • An additional Property Transfer Tax equal to 20% of the purchase price if the buyer is a Foreign Entity or a Taxable Trustee as defined by the British Columbia Transfer Tax Act.

Individuals must be Canadian citizens or permanent residents, have resided in British Columbia for at least a year before property registration, and meet specific criteria related to income tax returns and property characteristics. The property must be used as the principal residence and be $835,000 or under. Buyers will be exempt from PTT on the first $500,000 of the purchase price

More information can be found at:

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers

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