First Time Home Buyer Guide for BC in 2025

In 2025, becoming a first time home buyer in Canada is still one of the biggest financial steps most people ever take. Nearly half of recent first-time buyers (about 47%) were between 25 and 34 years old, showing how much this age group is driving the market.Yahoo Finance+1 At the same time, 49% of Canadians say they plan to buy a home in the next five years, even though affordability feels tight.NerdWallet

If you’re a first time home buyer in BC, you’re dealing with high prices, changing mortgage rules, and a confusing mix of tax incentives and provincial programs. The good news is that British Columbia and the federal government offer real, measurable help in the form of tax credits, down payment tools, and property transfer tax exemptions designed specifically for you.

This guide walks you through what it means to be a first time home buyer in Canada, how the rules work in BC, which programs you can actually use in 2025, and a simple step-by-step plan to get from renting to owning your first home.

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2025 Snapshot: First Time Home Buyers in Canada and BC

Before we get practical, it helps to understand the landscape you’re walking into as a first time home buyer.

• Most first-time buyers are still younger adults, but the average age is slowly creeping up as prices and rates stay high.CMHC+1
• Many buyers are stretching their savings: large down payments, gifted funds from family, and co-buying with partners or parents are increasingly common.
• In BC, especially in markets like Metro Vancouver and Victoria, prices remain among the highest in the country. That makes government incentives and smart planning crucial for any first time home buyer.

The key message: you’re not alone, and the system actually has several tools designed specifically for your situation.

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What “First Time Home Buyer” Means in Canada

“First time home buyer” sounds simple, but the definition changes slightly depending on the program.

Generally, you are considered a first time home buyer in Canada if:

• You have not owned a home that you occupied as your principal residence in the last four years (for several federal programs).
• You have never owned a home anywhere in the world (for some BC property transfer tax exemptions).Government of British Columbia+1

Some programs allow you to qualify as a first time home buyer again after a separation or divorce, even if you owned a home with a former spouse. Always check the fine print for each incentive.

If you’re unsure, a mortgage broker, accountant, or Realtor can quickly confirm whether you qualify under each program’s specific rules.

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Key Costs BC First Time Home Buyers Need to Plan For

Being a first time home buyer doesn’t mean you avoid costs. It means you get a few important breaks. Let’s look at what you still need to budget for.

Down Payment Rules for First Time Home Buyers in Canada

In Canada, the minimum down payment for an owner-occupied home is:

• 5% on the first $500,000 of the purchase price
• 10% on the portion from $500,000 to $999,999
• 20% or more on homes priced at $1,000,000 or higher

If you put less than 20% down, you’ll need mortgage default insurance (often called CMHC insurance, even if it’s from a private insurer). The premium gets added to your mortgage and depends on the down payment percentage.

For many first time home buyers, the strategy is:

1. Aim for at least 5–10% down.
2. Use registered savings like RRSPs through the Home Buyers’ Plan.
3. Combine your own savings with possible family gifts.

Closing Costs and Property Transfer Tax for First Time Buyers in BC

Beyond the down payment, every first time home buyer in BC must budget for closing costs, including:

• Legal fees and disbursements
• Title insurance or survey fees (depending on the lawyer/notary and lender)
• Property tax adjustments
• Home inspection
• Property Transfer Tax (PTT)

PTT is where BC first time home buyers can save the most money.

As of April 1, 2024, the First Time Home Buyers’ Program in BC works like this:Government of British Columbia+2Government of British Columbia+2

• If the home’s fair market value is $500,000 or less, you can get a full exemption from PTT.
• If the fair market value is over $500,000 but no more than $835,000, you get a partial exemption (for example, full exemption on the first $500,000, then tax on the rest).
• The exemption is gradually reduced for homes between $835,000 and $860,000.
• There is no first-time buyer PTT exemption for homes priced at $860,000 or more.

On a typical BC purchase, PTT is 1% on the first $200,000 and 2% on the portion from $200,000 to $2,000,000. That means the first time home buyer exemption can easily save you tens of thousands of dollars.

Extra Break for New Builds in BC

If you’re buying a newly built home, there’s another big opportunity. Effective April 1, 2024, buyers of newly constructed homes in BC may qualify for full PTT exemption on new homes up to $1,100,000, with partial relief up to $1,150,000.Auxilium Mortgage Broker Victoria BC+1

This can make new construction surprisingly attractive for a first time home buyer who is flexible on location and type of property.

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Federal Programs for First Time Home Buyers in Canada (2025)

Even though some federal programs have changed or ended, there is still meaningful help from Ottawa for first time home buyers.

1. First-Time Home Buyers’ Tax Credit (HBTC)

The HBTC gives eligible first time buyers a non-refundable tax credit when they file their income tax. The credit amount is based on a fixed percentage of a set amount (often updated by the federal government). While it doesn’t reduce your purchase price, it does lower your income tax owing in the year you buy.

2. Home Buyers’ Plan (HBP)

The Home Buyers’ Plan lets you withdraw money from your RRSP to put toward your down payment, without paying tax on that withdrawal right away.

Key points:

• You can withdraw up to a set maximum per eligible buyer (check the current limit; it has been increased over time).
• You must repay the amount to your RRSP over a 15-year period.
• Both you and your spouse/common-law partner can use the HBP if you both qualify as first-time buyers.

For many first time home buyers in BC, the HBP is essential for topping up the down payment and helping reach that 10% threshold.

3. GST/HST New Housing Rebate

If you buy a new home or substantially renovate, you may be eligible for a GST/HST new housing rebate, which returns a portion of the tax on the purchase. This can be significant in higher-priced BC markets, especially for new condos and townhomes.

4. First-Time Home Buyer Incentive (Ended)

You might still see references to the federal First-Time Home Buyer Incentive, which was a shared-equity mortgage program run through CMHC. However, no new approvals are granted after March 31, 2024, so new first time home buyers in 2025 can no longer apply.Ratehub.ca+1

For up-to-date details on active federal tax incentives and credits, see the Government of Canada’s summary of first-time home buyer tax incentives.Canada

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BC Programs and Incentives for First Time Home Buyers

Beyond the federal tools, BC has its own set of incentives that are especially valuable for a first time home buyer.

BC First Time Home Buyers’ Program (PTT Exemption)

As covered earlier, this program can:

• Fully eliminate PTT on qualifying homes $500,000 or less, and
• Partially reduce PTT up to a fair market value of $835,000, with a sliding reduction up to $860,000.Government of British Columbia+2Government of British Columbia+2

Eligibility usually requires:

• You are a Canadian citizen or permanent resident.
• You have lived in BC for at least 12 consecutive months immediately before the date the property is registered or filed at least two income tax returns as a BC resident in the last six years.
• You have never owned a principal residence anywhere in the world.
• You intend to occupy the property as your principal residence within a set time after completion.

BC New Housing PTT Exemptions

If you’re buying a new build as a first time home buyer:

• There is a new housing PTT exemption for qualifying newly built homes up to $1,100,000, with partial relief up to $1,150,000.Auxilium Mortgage Broker Victoria BC

This can be stacked with some federal programs, making certain new townhomes or condos much more attainable for first time home buyers in Greater Vancouver and other urban centres.

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Step-by-Step Plan for First Time Home Buyers in BC

Being a first time home buyer feels overwhelming mostly because there are many moving parts. Here’s a simple, practical roadmap.

Step 1: Get Clear on Your Budget and Timeline

• Look at your after-tax income, your monthly expenses, and how much you can realistically save.
• Decide when you want to buy: in 12 months, 18 months, or longer.
• Use online calculators to model different price points, down payments, and interest rates.

You can also work with a mortgage broker early. They’ll help you understand your borrowing power and what your monthly payment might be at today’s rates.

Step 2: Build Your First Time Home Buyer Down Payment Strategy

• Set a monthly savings target into a high-interest savings account or TFSA.
• Consider contributing to your RRSP so you can later use the Home Buyers’ Plan.
• Talk to family honestly about possible gifts or early inheritance if that’s realistic for you.

If you’re serious about buying in a high-priced BC market, it’s normal for a first time home buyer to plan aggressively for 12–36 months.

Step 3: Clean Up Your Credit and Debt

• Pull your credit report from both major bureaus (Equifax and TransUnion).
• Pay down high-interest credit cards or lines of credit.
• Avoid taking new car loans or large monthly payment obligations right before applying for a mortgage.

A stronger credit profile can help you qualify for a better rate, which saves a first time home buyer tens of thousands of dollars over the life of a mortgage.

Step 4: Get Pre-Approved as a First Time Home Buyer

• Meet with a mortgage broker or lender and get a written pre-approval.
• Confirm how much you can afford including stress-tested rates.
• Make sure you understand whether your rate is fixed or variable and what the term length is.

Once you’re pre-approved, you’re ready to look at real properties instead of just dreaming on MLS.

Simple Steps for Vancouver Buyers in Today’s Market internal links: https://tomjahed.ca/simple-steps-for-vancouver-buyers/

Step 5: Choose Your Location and Property Type

For many first time home buyers in BC, the trade-off is:

• Smaller home or condo in a central, high-demand area
• Versus
• Larger home or townhouse further out (exurbs, Fraser Valley, Vancouver Island, Interior BC, etc.)

Think about your:

• Commute
• Lifestyle
• Future plans (kids, pets, home office)

A good Realtor will walk you through sold data, neighbourhood trends, and future development plans so your first purchase is also a good long-term investment.

Step 6: Shop, Offer, and Due Diligence

When you’re ready to write offers as a first time home buyer:

• Review recent comparable sales (not just list prices).
• Include subjects such as financing, inspection, and review of strata documents (for condos/townhomes), unless you fully understand the risks of removing them.
• Hire a professional home inspector.

You should also confirm with your lawyer or notary how the BC first time home buyer PTT exemption will apply to your specific deal.

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Common Mistakes First Time Home Buyers Make in BC

Even smart buyers get tripped up by the same issues again and again.

Some mistakes to avoid:

• Focusing only on the price, not the monthly payment plus strata fees, utilities, and property taxes.
• Underestimating closing costs, especially PTT when you don’t qualify for the exemption.
• Ignoring resale potential and buying a property that will be hard to sell later (poor layout, bad location, problem building).
• Skipping a detailed review of strata documents, including depreciation reports and contingency reserve funds, when buying a condo or townhouse.

A thoughtful first time home buyer treats this purchase as both a home and a long-term financial asset.

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Should First Time Home Buyers Wait or Buy Now?

This is the question every first time home buyer asks.

There is no universal answer, but here’s a practical way to think about it:

• If you have a stable job, a realistic down payment plan, and expect to stay in the same area for at least 5–7 years, buying can make sense even in a high-priced market.
• If your income is uncertain, your savings are very low, or you plan to move within a couple of years, waiting and renting may be safer.

Remember that markets move in cycles. Instead of trying to perfectly time the bottom, focus on:

• Buying a property you can comfortably afford
• In a location you’re happy to live in
• With decent long-term appreciation potential

For many Canadians, especially in BC, the first home isn’t the “forever home.” It’s a stepping stone that builds equity and experience.

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External Resource: Learn More About First Time Home Buyer Tax Incentives

For official, up-to-date details on federal tax credits and incentives for a first time home buyer in Canada, see the Canada Revenue Agency’s page on first-time home buyer tax incentives (Government of Canada).Canada

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Ready to Buy Your First Home in BC?

If you’re a first time home buyer in British Columbia, you don’t have to figure this out alone. With the right plan, the right incentives, and the right guidance, owning your first place can be realistic, even in a challenging market.

Use this guide to:

• Map out your savings and down payment strategy
• Take advantage of every BC and federal program you qualify for
• Understand the true costs of buying your first home
• Move from “someday” to a clear timeline

Your next step is simple: talk to a trusted local Realtor and mortgage professional, get pre-approved, and start working through your own first time home buyer checklist.

If this is going on your website, this is where you add a strong call to action, for example:

Ready to get started as a first time home buyer in BC?
Book a free strategy call with me today and let’s build your custom plan to owning your first home.