Buying a home is one of the biggest financial decisions most Canadians will ever make, and for first-time home buyers in British Columbia, affordability is a top concern. Fortunately, several government grants, tax credits, and incentives can reduce upfront costs and lower mortgage payments.
In this guide, we explore the most relevant programs available in 2025, including those offered by the Government of Canada, the BC provincial government, and local municipal programs. Sandhu & Sran Mortgages, a trusted mortgage brokerage in Surrey, Abbotsford, and the Fraser Valley, specializes in helping first-time buyers maximize these incentives and secure low-interest mortgage options.
1. First-Time Home Buyers’ Tax Credit (HBTC) – Up to $1,500 Tax Refund
The First-Time Home Buyers’ Tax Credit (HBTC) allows eligible first-time home buyers to receive a non-refundable tax credit when filing their income tax return.
Key Features:
- Up to $1,500 in tax savings per household.
- Applies to both resale and newly constructed homes.
- Can be combined with other homeownership incentives.
Eligibility Criteria:
- The buyer (or spouse/common-law partner) must not have owned a home in the past four years.
- The property must be a primary residence.
2. Home Buyers’ Plan (HBP) – RRSP Withdrawal for Down Payment
The Home Buyers’ Plan (HBP) allows first-time home buyers to withdraw up to $60,000 from their RRSPs tax-free to use as a down payment.
Key Features:
- Withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP).
- No tax is charged on withdrawals if the amount is repaid within 15 years.
- Helps increase your down payment and avoid CMHC mortgage insurance costs.
Eligibility Criteria:
- Must be a first-time home buyer.
- The RRSP funds must have been in the account for at least 90 days before withdrawal.
- Must repay the borrowed amount over 15 years.
3. BC First-Time Home Buyers’ Property Transfer Tax Exemption
The BC Property Transfer Tax (PTT) Exemption can save first-time home buyers up to $8,000 on their home purchase.
Key Features:
- Full tax exemption for homes valued up to $500,000.
- Partial tax exemption for homes valued between $500,000 and $525,000.
- Helps reduce upfront closing costs.
Eligibility Criteria:
- Must be a Canadian citizen or permanent resident.
- The home must be your primary residence.
- The home’s fair market value must be under $525,000 for a partial exemption.
4. GST/HST New Housing Rebate – Tax Refund on New Homes
The GST/HST New Housing Rebate allows buyers of newly built homes to recover part of the GST paid on their purchase.
Key Features:
- Up to 36% of the GST paid on a new home may be refunded.
- Applies to new construction, major renovations, and rebuilds.
- Can save thousands of dollars in taxes.
Eligibility Criteria:
- The home must be newly constructed or substantially renovated.
- The purchase price must be below $450,000 to qualify for a full rebate.
5. CMHC Mortgage Loan Insurance – Lower Down Payment Options
The Canada Mortgage and Housing Corporation (CMHC) offers mortgage insurance to help first-time home buyers qualify for a mortgage with a down payment as low as 5%.
The Canada Mortgage and Housing Corporation (CMHC) offers mortgage insurance to help first-time home buyers qualify for a mortgage with a down payment as low as 5%.
Key Features:
- Enables buyers to purchase homes with just a 5% down payment.
- Protects lenders, allowing them to offer lower interest rates.
- Lower insurance premiums for homes that meet energy efficiency standards.
Eligibility Criteria:
- Must have a credit score of at least 600.
- The home’s value must be under $1,000,000.
- The mortgage must be for owner-occupied properties only.
6. First-Time Home Buyer Incentive (FTHBI) – Shared Equity Program
The First-Time Home Buyer Incentive (FTHBI) is a shared-equity mortgage program that allows first-time buyers to reduce their monthly mortgage payments by receiving 5% or 10% of the home’s purchase price from the government.
Key Features:
- 5% incentive for resale homes and 10% incentive for new homes.
- Lower monthly mortgage payments as the incentive reduces the loan amount.
- No ongoing interest charges; the government shares in the home’s value appreciation or depreciation.
Eligibility Criteria:
- Total household income must be under $120,000.
- The mortgage must be at least 80% of the home’s value.
- The home must be your primary residence.
7. BC Home Owner Grant – Property Tax Relief
The BC Home Owner Grant helps reduce property taxes for first-time home buyers and eligible homeowners.
Key Features:
- Up to $570 in tax savings for homes valued up to $2.125 million.
- Rural homeowners can receive up to $770 in grants.
- Additional grant for seniors, veterans, and people with disabilities.
Eligibility Criteria:
- Must be a BC resident.
- The home must be your primary residence.
The property must be valued below the threshold ($2.125 million in 2025).
8. CMHC Eco Plus Program – Energy-Efficient Home Incentives
The CMHC Eco Plus Program provides a partial refund on mortgage insurance premiums for first-time buyers purchasing energy-efficient homes.
Key Features:
- Get up to 25% of your CMHC mortgage insurance premium refunded.
- Encourages energy-efficient home purchases in BC.
- Helps lower long-term homeownership costs.
Eligibility Criteria:
- The home must meet energy efficiency requirements based on the EnerGuide rating system.
- Buyers must apply within 24 months of the closing date.
9. First-Time Home Buyer Savings Account (FHSA) – Tax-Free Savings
The First-Time Home Buyer Savings Account (FHSA) is a new registered savings plan that allows buyers to save for a home tax-free.
Key Features:
- Contribute up to $8,000 annually and a lifetime total of $40,000.
- Tax-free withdrawals when used to purchase a home.
- No repayment requirements, unlike the RRSP Home Buyers’ Plan.
Eligibility Criteria:
- Must be a first-time home buyer.
- Contributions are tax-deductible, like an RRSP.
- Funds must be used for a qualifying home purchase within 15 years.
10.Federal & BC Incentives for Indigenous First-Time Home Buyers
Special homeownership assistance programs exist for Indigenous first-time buyers in BC.
Key Programs:
- First Nations Market Housing Fund (FNMHF) – Offers loan guarantees & financial literacy support.
- Indigenous Homes Innovation Initiative – Supports creative housing solutions.
- Affordable Rental Housing for Indigenous Peoples – Provides subsidized housing options.
How Sandhu & Sran Mortgages Can Help First-Time Buyers in BC
Navigating the various government grants, tax credits, and mortgage incentives can be complex, but Sandhu & Sran Mortgages simplifies the process for first-time buyers in Surrey, Abbotsford, and the Fraser Valley.
Our Services Include:
✅ Personalized mortgage solutions tailored for first-time buyers.
✅ Expert guidance on applying for government grants & rebates.
✅ Low-interest rate mortgage options to maximize affordability.
✅ Access to exclusive mortgage products from leading lenders.
Whether you’re buying your first home in BC or need assistance with property tax exemptions, rebates, or CMHC incentives, we’re here to help!
Final Thoughts: Secure Your First Home with Maximum Savings
With home prices in BC remaining high, first-time home buyers in Surrey, Abbotsford, and across BC must take advantage of every available financial incentive.
By leveraging programs like:
✔ Home Buyers’ Plan (HBP)
✔ First-Time Home Buyer Incentive (FTHBI)
✔ BC Property Transfer Tax Exemption
✔ GST/HST New Housing Rebate
✔ First-Time Home Buyer Savings Account (FHSA)
You can reduce your upfront costs, save on taxes, and lower your mortgage payments.
At Sandhu & Sran Mortgages, we work closely with first-time buyers in BC to help them qualify for government incentives, access lower mortgage rates, and secure a home that fits their budget.
📞 Contact us today or book a consultation to get started on your first home purchase!
🔗 Additional Resources & References:
- 🔗 Government of BC – First-Time Home Buyers Tax Exemption: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers
- 🔗 Bank of Canada Interest Rate Updates: https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/
- 🔗 CMHC First-Time Home Buyer Incentives: https://www.cmhc-schl.gc.ca/en/nhs/first-time-home-buyer-incentive