Buying your first home in British Columbia can feel overwhelming.

How much down payment do you actually need?

Do first-time buyers still pay Property Transfer Tax?

Can you use your RRSP for the down payment?

What is an FHSA?

Do first-time buyers get the GST back when purchasing a brand-new home?

And can you really get a 30-year mortgage with less than 20% down?

The good news is that first-time home buyers in BC have access to several programs that can reduce upfront costs and potentially make home ownership more achievable.

If you're looking at buying your first condo, townhouse or detached home in Surrey, Langley, Delta, White Rock, Abbotsford or elsewhere in the Fraser Valley, here are some of the most important rules and programs you should understand in 2026.

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1. How Much Down Payment Does a First-Time Home Buyer Need in BC?

One of the biggest misconceptions I hear is that first-time buyers always need 20% down.

That isn't necessarily true.

For an owner-occupied property eligible for mortgage insurance, Canada's current minimum down-payment structure is:

Home priced at $500,000 or less

Minimum down payment:

5% of the purchase price

For example:

$500,000 home

Minimum down payment = $25,000

Home priced between $500,000 and $1.5 million

You generally need:

5% of the first $500,000

plus

10% of the portion above $500,000

For example, on a $750,000 property:

First $500,000 × 5% = $25,000

Remaining $250,000 × 10% = $25,000

Minimum down payment = $50,000

That means a qualified first-time buyer purchasing a $750,000 townhouse does not automatically need $150,000 for a 20% down payment.

They could potentially purchase with approximately $50,000 down, subject to mortgage qualification and mortgage-insurance requirements.

For properties priced at $1.5 million or more, a minimum 20% down payment is generally required.

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2. First-Time Buyers May Qualify for a 30-Year Mortgage

Another major change that many buyers still don't know about is mortgage amortization.

Eligible first-time home buyers with an insured mortgage can now access up to a:

30-year amortization

instead of being limited to 25 years.

A longer amortization generally reduces the required monthly mortgage payment because the mortgage is being paid back over a longer period.

For example, the same mortgage balance spread over 30 years will generally have a lower monthly payment than one spread over 25 years.

However, there is a trade-off.

You generally pay more interest over the full life of the mortgage if you take longer to repay it.

That is why I would look at a 30-year amortization as an affordability tool, rather than automatically assuming it is the best financial option.

Your mortgage broker or lender should help you compare the actual numbers.

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3. BC First-Time Home Buyers' Property Transfer Tax Exemption

Property Transfer Tax, commonly called PTT, can be one of the largest closing costs when buying a home in British Columbia.

BC's standard Property Transfer Tax is generally calculated as:

• 1% on the first $200,000

• 2% on the portion between $200,000 and $2 million

• higher rates apply to portions above certain thresholds

Fortunately, qualifying first-time home buyers may receive an exemption.

But this is one area where buyers frequently misunderstand the current rules.

How Much Is the BC First-Time Buyer PTT Exemption?

For qualifying properties registered under the current program:

Property worth $500,000 or less

A qualifying first-time buyer can generally receive an exemption equal to the full Property Transfer Tax otherwise payable.

Property worth more than $500,000 and up to $835,000

The maximum available exemption is currently:

$8,000

This means the exemption does not necessarily eliminate all of your Property Transfer Tax.

For example:

Buying a $750,000 home

Regular Property Transfer Tax:

First $200,000 × 1% = $2,000

Remaining $550,000 × 2% = $11,000

Total PTT = $13,000

Maximum first-time buyer exemption = $8,000

Estimated PTT remaining:

$5,000

So although you're receiving a substantial benefit, you're not necessarily paying zero PTT.

This distinction is particularly important in markets such as Surrey and Langley, where many first-time-buyer properties are priced above $500,000.

Between $835,000 and $860,000

The $8,000 exemption gradually phases out.

$860,000 or more

Under the current first-time home buyer PTT program, the exemption is no longer available based on the property's value.

Always have your lawyer or notary confirm your specific eligibility before relying on an exemption.

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4. Who Qualifies as a First-Time Home Buyer for the BC PTT Exemption?

The BC government's definition has specific requirements.

Among other conditions, you generally must:

• be a Canadian citizen or permanent resident,

• have lived in BC for at least one year immediately before becoming the registered owner, or* have filed BC income-tax returns for at least two of the previous six taxation years,

• never previously have owned a registered interest in a property that was your principal residence anywhere in the world, and

• use the property as your principal residence.

There are also occupancy requirements after completion.

This is important because different first-time-buyer programs do not always use exactly the same definition of a first-time buyer.

You might qualify for one federal program but not necessarily qualify for the BC Property Transfer Tax exemption.

Always check each program separately.

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5. First Home Savings Account — FHSA

If you're planning to purchase your first home, the First Home Savings Account, or FHSA, is one of the most valuable programs available.

It combines some of the advantages of an RRSP and a TFSA.

You may be able to:

claim a tax deduction when contributing

and then

withdraw qualifying funds tax-free to purchase your first home.

The annual FHSA contribution limit is currently:

$8,000 per year

with a lifetime contribution limit of:

$40,000

That can become particularly powerful for couples.

If two eligible first-time buyers each build up $40,000 in their respective FHSAs, they could potentially have:

$80,000 combined

available toward their purchase, subject to meeting the program requirements.

And unlike money withdrawn through the Home Buyers' Plan from an RRSP, a qualifying FHSA withdrawal generally does not have to be repaid.

For someone planning to purchase several years from now, opening an FHSA early can therefore be worth discussing with a qualified financial or tax professional.

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6. RRSP Home Buyers' Plan — Up to $60,000

The federal Home Buyers' Plan, commonly called the HBP, allows eligible buyers to withdraw money from their RRSP toward the purchase or construction of a qualifying home.

The current individual withdrawal limit is:

up to $60,000

That means two eligible buyers purchasing together could potentially access up to:

$120,000 combined

from their RRSPs under the HBP, assuming each qualifies and has sufficient RRSP funds available.

The major difference between an FHSA and the Home Buyers' Plan is repayment.

Money withdrawn under the HBP normally needs to be repaid into your RRSP over time.

For qualifying first withdrawals made between January 1, 2026 and December 31, 2028, the federal government has also extended temporary repayment relief, with the repayment period beginning later than under the standard rules.

Talk to your accountant or financial advisor before withdrawing RRSP funds so you fully understand the tax and repayment implications.

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7. Can You Use an FHSA and the Home Buyers' Plan Together?

Yes.

This is one of the most useful planning opportunities available to first-time buyers.

If you meet the applicable eligibility requirements, you can potentially use:

FHSA funds

plus

RRSP funds through the Home Buyers' Plan

toward the same home purchase.

For example, an individual who has maximized both programs could potentially have access to:

FHSA: $40,000

HBP: $60,000

Combined potential funds:

$100,000

For a qualifying couple where both buyers have maximized both programs, the combined amount could potentially be considerably higher.

Of course, very few first-time buyers will have maximized all of these accounts, but it shows why planning several years before purchasing can make a major difference.

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8. New First-Time Home Buyer GST Rebate

This is one of the biggest changes for first-time home buyers purchasing brand-new construction.

Canada now has a First-Time Home Buyers' GST/HST rebate that can potentially eliminate the federal GST on qualifying new homes priced up to:

$1 million

The maximum potential federal rebate is:

$50,000

For qualifying homes priced between:

$1 million and $1.5 million

the rebate gradually decreases.

At $1.5 million or above, the first-time buyer rebate is no longer available.

The program generally applies to eligible agreements entered into with builders on or after March 20, 2025, subject to the program's other requirements.

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9. Why the GST Rebate Is Especially Important for Surrey and Fraser Valley Buyers

This program can make a meaningful difference for buyers considering:

• brand-new condos,

• pre-sale condos,

• new townhouses,

• newly constructed detached homes, or

• qualifying substantially renovated homes.

Let's use a simple example.

A brand-new home priced at:

$750,000

could normally have significant GST associated with the purchase.

For an eligible first-time buyer under the new federal rebate program, up to 100% of the federal GST may potentially be rebated on qualifying homes valued at $1 million or less, subject to the program rules.

That can materially change the amount of cash a buyer needs to consider when comparing:

a resale property versus a brand-new property.

If you're comparing the two, don't simply compare the advertised prices.

Ask for the real after-tax and after-rebate cost.

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10. Don't Forget About Closing Costs

Your down payment isn't the only cash you'll need.

First-time buyers should also budget for closing costs.

Depending on the property, these can include:

• Property Transfer Tax after any applicable exemption,

• legal or notary fees,

• title insurance,

• property-tax adjustments,

• strata adjustments,

• home inspection,

• appraisal,

• moving costs,

• home insurance, and

• GST on applicable new construction.

There may also be mortgage-insurance premiums when your down payment is below 20%.

The mortgage-insurance premium can generally be added to your mortgage rather than being paid entirely upfront, although applicable provincial tax treatment should be confirmed with your mortgage professional.

My advice is simple:

Don't use every dollar you have for the down payment.

Owning a home comes with expenses after you receive the keys.

Keep some financial breathing room.

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11. The Deposit and Down Payment Are Not the Same Thing

This causes a lot of confusion among first-time buyers.

The deposit is normally paid after you enter into an accepted Contract of Purchase and Sale, according to the terms of that contract.

The down payment is the total amount of your own funds being contributed toward the purchase.

Your deposit normally becomes part of your down payment at completion.

For example:

Purchase price: $750,000

Total planned down payment: $75,000

Deposit already paid: $30,000

Remaining down-payment funds required at completion:

Approximately $45,000, before considering closing adjustments and other costs.

The exact timing and amounts depend on the contract and financing.

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12. Should You Get Pre-Approved Before Looking at Homes?

Absolutely.

One of the biggest mistakes I see first-time buyers make is starting with property searches before understanding financing.

Your first question shouldn't be:

“What can I buy for $700,000?”

It should be:

“What purchase price can I comfortably afford?”

Those are two very different questions.

A mortgage broker or lender should help you understand:

• your maximum mortgage qualification,

• estimated monthly payment,

• down-payment requirement,

• mortgage insurance,

• interest-rate assumptions,

• debt-service ratios, and

• whether a 25-year or 30-year amortization makes more sense.

Once we have those numbers, we can build the property search around your actual financial situation.

That is a much safer way to buy.

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13. Don't Buy Only Because You're a First-Time Buyer

Government programs are useful.

But an exemption or rebate should never become the reason you purchase the wrong property.

I would still look carefully at:

Location

How does the property connect to work, schools, transit, shopping and your daily lifestyle?

Strata

If you're buying a condo or townhouse, review the strata financials, council minutes, depreciation report, insurance and potential upcoming expenses.

Age and condition

A cheaper older property can sometimes cost substantially more after repairs.

Monthly carrying costs

Don't look only at the mortgage.

Consider strata fees, property taxes, utilities, insurance and maintenance.

Resale

Even if you're planning to stay for years, think about who might want to buy this property from you in the future.

Future plans

Could you comfortably live there if your family or employment situation changed?

Getting into the market is important.

But getting into the right property matters more.

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First-Time Home Buyer Example: Buying a $750,000 Townhouse in BC

Let's put several of these numbers together.

Assume an eligible first-time buyer purchases an owner-occupied townhouse for:

$750,000

Minimum down payment

5% of first $500,000 = $25,000

10% of remaining $250,000 = $25,000

Minimum down payment:

$50,000

Property Transfer Tax

Normal PTT:

$2,000 on first $200,000

plus

$11,000 on remaining $550,000

Total = $13,000

Potential first-time buyer exemption:

$8,000

Estimated PTT payable after exemption:

$5,000

The buyer might also potentially have access to:

• an FHSA,

• RRSP funds through the Home Buyers' Plan,

• a 30-year insured mortgage amortization, and

• if purchasing qualifying new construction, the First-Time Home Buyers' GST rebate.

This is why I recommend looking at the complete financial picture, rather than focusing only on the listing price.

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Frequently Asked Questions About Buying Your First Home in BC

1. Do first-time buyers pay Property Transfer Tax in BC?

Possibly.

Qualifying first-time buyers can receive an exemption. For eligible homes over $500,000 and up to $835,000, the current maximum exemption is $8,000. A reduced exemption applies between $835,000 and $860,000.

2. Can a first-time buyer purchase with 5% down?

For qualifying owner-occupied properties priced at $500,000 or less, the minimum can be 5%.

For properties between $500,000 and $1.5 million, the minimum is generally 5% of the first $500,000 plus 10% of the remaining amount.

3. Can a first-time buyer get a 30-year mortgage in Canada?

Eligible first-time buyers with an insured mortgage may qualify for a 30-year amortization.

4. How much can I withdraw from my RRSP as a first-time buyer?

The current Home Buyers' Plan limit is up to $60,000 per eligible individual, subject to program requirements.

5. How much can I save in an FHSA?

The current annual contribution limit is $8,000, with a lifetime contribution limit of $40,000** per eligible individual.

6. Can I use my FHSA and RRSP Home Buyers' Plan together?

Yes, eligible buyers can potentially use qualifying FHSA withdrawals and Home Buyers' Plan withdrawals toward the same home.

7. Do first-time buyers pay GST on new homes in BC?

Eligible first-time buyers purchasing qualifying new construction may now receive a federal GST rebate of up to $50,000. The rebate can eliminate the federal GST on qualifying homes valued at up to $1 million and gradually phases out between $1 million and $1.5 million.

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Buying Your First Home in Surrey or the Fraser Valley?

Buying your first home is not simply about finding a property you like.

You need to understand:

what you can afford,

how much cash you actually need,

which government programs you qualify for,

what risks exist in the property,

and whether you're making a good long-term decision.**

I work with first-time buyers throughout Surrey, Langley, Delta, White Rock, Abbotsford and the Fraser Valley, helping them understand the numbers and the property before making a decision.

My approach is simple:

Knowledge first, no pressure.

If you're thinking about buying your first home and aren't sure where to begin, we can start by understanding your budget, timeline and priorities before looking at properties.

Vinay Attri | Realtor

RE/MAX Performance Realty

vinayattri.ca

This article provides general real estate information and is not legal, mortgage, accounting or tax advice. Government programs and eligibility requirements can change. Buyers should verify their eligibility with the appropriate government authority and obtain advice from qualified legal, mortgage and tax professionals before making a purchase.