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First-Time Buyer Guide · BC

First-Time Buyer in BC —
What You Actually Need to Know

There are several programs available to first-time buyers in BC. Some are genuinely helpful. Others have expired or don't apply in Nanaimo's price range. Here's a straight breakdown of what's actually on the table.

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Programs Available

Every Program — Plain Language

Six programs across federal and provincial levels. Three are active and stackable. One is restricted to specific income brackets. Two no longer exist.

Active

First Home Savings Account (FHSA)

Open a registered account, contribute up to $8,000/year (lifetime max $40,000), and get a full tax deduction on contributions. Withdrawals for a qualifying home purchase are completely tax-free. If you haven't opened one yet, you're leaving money behind.

→Annual contribution: $8,000
→Lifetime max: $40,000
→Tax benefit: Deductible contributions + tax-free withdrawals
→Requirement: Must be first-time buyer, Canadian resident
Active

RRSP Home Buyers' Plan

Withdraw up to $35,000 from your RRSP tax-free for a first home purchase. You have 15 years to repay it back into your RRSP. Often stacked with FHSA for maximum down payment. The repayment window is generous, but missing a year means that amount gets added to your taxable income.

→Max withdrawal: $35,000 per person ($70,000 per couple)
→Repayment: Over 15 years
→Requirement: RRSP contributions must be 90+ days old
Active — BC Only

BC Property Transfer Tax Exemption

First-time buyers in BC pay no Property Transfer Tax on homes up to $835,000. Between $835K and $860K you get a partial exemption. Above that, full PTT applies. At 1–3% of purchase price, this exemption saves most Nanaimo buyers $8,000–$16,000 at closing.

→Full exemption: Homes under $835,000
→Partial exemption: $835K–$860K
→Typical savings: $8,000–$16,000
Active — Federal

First-Time Home Buyers' Tax Credit

A $10,000 non-refundable federal tax credit that puts up to $1,500 back in your pocket at tax time. It's not a huge number but it costs nothing to claim. Eligible for the year you buy.

→Credit amount: $10,000 (15% = $1,500 refund)
→Claimed: On your personal tax return
Ended March 2024

First Home Incentive

This was a federal shared-equity program where the government contributed 5–10% toward your down payment in exchange for an ownership stake. It was cancelled in March 2024. If you're reading about it somewhere, that information is out of date.

Closed to New Applicants

BC Home Owner Mortgage & Equity Partnership

A provincial program that matched down payments dollar-for-dollar up to $37,500. No longer accepting applications.

Quick Reference

Programs at a Glance

ProgramStatusMax BenefitStackable?Key Requirement
FHSAActive$40,000 + tax savingsYesFirst-time buyer, Canadian resident
RRSP Home Buyers' PlanActive$35,000 per personYesRRSP funds 90+ days old
BC PTT ExemptionActive~$16,000 at closingYesPurchase price under $835K
FHBTC (Federal)Active$1,500 tax refundYesClaimed on tax return
First Home IncentiveEndedN/ANoProgram cancelled March 2024

Common Misconceptions

What People Get Wrong

A few things I hear regularly from buyers who've been misinformed.

Common Belief

"You need a 20% down payment to buy"

Reality

Minimum is 5% for homes under $500K, and 5% on the first $500K + 10% on the remainder for homes up to $999,999. 20% avoids CMHC insurance but it's not a requirement.

Common Belief

"The First Home Incentive is still available"

Reality

It was cancelled in March 2024. Any guide still listing it as active is out of date. The FHSA is the stronger option anyway.

Common Belief

"FHSA and RRSP Home Buyers' Plan can't be used together"

Reality

They can be stacked. A couple using both could pull $110,000 ($40K FHSA + $35K RRSP each) for a down payment, potentially tax-free.

Common Belief

"The PTT exemption only matters on cheap homes"

Reality

At 1–3% of purchase price, buying a $750,000 home without the exemption costs you roughly $13,000 extra at closing. It matters a lot in Nanaimo's market.

Keep Going

Next Guide →

What Can You Afford in Nanaimo?

Current prices by property type, real closing cost breakdown, and the stress test explained.

Also Worth Reading →

The Nanaimo Buyer's Roadmap

8 steps from pre-approval to possession day — what to expect at each stage.

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Ready to Start Looking?

Derek has helped hundreds of first-time buyers in Nanaimo navigate these programs and find the right home. Call or text anytime.

Call 250-585-3322