BC Homebuyer Incentives You Should Know About

Thinking about buying a place in British Columbia? Whether it’s your first home or you’ve been through the process before, there are some awesome government programs out there that can make things a lot more affordable. From tax breaks to rebates and grants, these incentives are designed to help take some of the financial pressure off your shoulders.

What’s great is that both the federal and BC governments offer different programs—some are just for first-time buyers, while others are available to anyone. If you know what’s out there and take advantage of the right ones, you could end up saving thousands.

That’s where we come in. At Sherwood Mortgage Group, we don’t just help you find the best mortgage—we make sure you’re saving every dollar you’re entitled to. We’ll walk you through all the options, break down what you qualify for, and help make your home buying journey a little smoother (and a lot less stressful).

So, let’s take a look at some of the most popular incentives available right now:

Federal Incentives (Available to all Canadians) - These programs are offered by the Government of Canada and can be used by eligible residents in any province, including BC.

1. Home Buyers’ Plan (HBP) - The HBP allows first-time homebuyers to withdraw up to $60,000 from their RRSPs to buy or build a qualifying home. Withdrawals are tax-free as long as they’re repaid over 15 years.

Who’s eligible:

• Must be a first-time homebuyer (no home ownership in the past four years).
• Must have a written agreement to buy or build a qualifying home.
• The home must be your primary residence within one year.

How Sherwood Mortgage Group Helps: We’ll work with your financial planner or help you assess your RRSP eligibility to ensure you’re maximizing your withdrawal while maintaining your long-term savings goals.

2. GST/HST New Housing Rebate - If you’re buying a new home or doing major renovations, you may qualify for a rebate on the federal portion of the GST or HST paid.

Who’s eligible:

• Must use the home as your principal residence.
• Typically applies to homes priced under $450,000 (partial rebates may apply up to this amount).

How Sherwood Mortgage Group Helps: We ensure your home purchase qualifies, assist in gathering the necessary documentation, and help coordinate the rebate application process alongside your lawyer or notary.

3. First-Time Home Buyers’ Tax Credit (HBTC) - A non-refundable tax credit that provides up to $1,500 in tax relief to help with closing costs like legal fees or home inspections.

Who’s eligible:

• First-time homebuyers (you or your partner haven’t owned a home in the last four years).
• Must occupy the home within a year of purchase.

How Sherwood Mortgage Group can help: We educate you about every cost involved and ensure you’re claiming all available tax credits at the time of filing with your tax professional.

4. First Home Savings Account (FHSA) - This new program allows first-time buyers to save up to $40,000 tax-free for a down payment. Contributions are tax-deductible, and withdrawals (plus growth) are not taxed if used for your first home.

Who’s eligible:

• Canadian residents aged 18–71.
• Must be a first-time homebuyer.

How Sherwood Mortgage Group Helps: We can help you strategize how to use your FHSA alongside RRSPs, TFSAs, and other savings tools to fund your down payment and qualify for the best mortgage possible.

5. Purpose-Built Rental Housing Exemptions (PBRH) - GST exemptions on newly constructed rental properties to encourage more rental inventory.

Who’s eligible:

• Developers or investors building qualifying multi-unit rental projects.

How Sherwood Mortgage Group Helps: If you’re a builder or investor, our team can help structure your financing and connect you with professionals who specialize in these types of projects.

BC Provincial Incentives - These programs are offered by the Government of British Columbia and are specific to homes purchased within the province.

1. BC Homeowner Grant - Reduces property taxes on your principal residence by up to $570 in most urban areas and $770 in rural areas. Seniors, veterans, and persons with disabilities may receive additional reductions.

Who’s eligible:

• The property must be your principal residence.
• Assessed home value must fall below the qualifying threshold (approx. $2.15 million in 2025).

How Sherwood Mortgage Group Helps: We provide guidance during closing to ensure you or your notary apply for this grant correctly and on time.

2. BC First Time Home Buyers’ Program (Property Transfer Tax Exemption) - Exempts eligible first-time homebuyers from paying Property Transfer Tax (PTT), which is typically 1–2% of the purchase price.

Who’s eligible:

• First-time buyers.
• Must have lived in BC for at least 12 months prior, or filed 2 BC tax returns in the last 6 years.
• Property value must be $500,000 or less for a full exemption, with partial relief available up to $525,000.

How Sherwood Mortgage Group Helps: We’ll walk you through the qualification requirements and help check your eligibility.

3. BC Newly Built Home Exemption (PTT Relief) - Buyers of newly built homes may be eligible for a PTT exemption.

Who’s eligible:

• The home must be newly constructed or substantially renovated.
• Must be your principal residence.
• Fair market value must be $750,000 or less for full exemption, and partial relief up to $800,000.

How Sherwood Mortgage Group Helps: We help you understand how this exemption affects your closing costs and build it into your overall affordability plan.

How Sherwood Mortgage Group Can Support You

Navigating these programs can feel overwhelming, especially when they involve eligibility rules, tax forms, and deadlines. At Sherwood Mortgage Group, our mission is to simplify the process and ensure every client is fully informed and financially prepared.

When you work with us, we:

· Help you understand which programs you qualify for.

· Can connect you with professionals like lawyers and accountants when needed.

· Structure your mortgage in a way that leverages incentives to your advantage.

· Keep you informed of any changes to federal or provincial programs.

Whether you’re a first-time buyer or upgrading to your next home, Sherwood Mortgage Group is here to help you make the most of every opportunity—and get you one step closer to the keys in your hand.

Thinking of buying a property in British Columbia?

Reach out to us at Sherwood Mortgage Group for a free mortgage consultation—we’ll help you unlock the best path to homeownership and maximize every dollar along the way.