Back in 1994, you could see Forrest Gump at the movie theatre for $4. You could also buy a home in BC with an $8,000 down payment. That’s because the average cost of a home was $160,064 (equivalent to $296,560 in today’s value). Today, the average home is 133 per cent more. Ouch. 

“I think it’s always overwhelming to buy your first home, let alone in one of the most expensive housing markets in Canada,” agrees Ryan McKinley, Senior Mortgage Development Manager at Vancity.  

But Ryan says it’s not all bad out there. He points out the silver linings of the housing market, like BC government incentives and programs, and a recent cooling-off period from record high interest rates.  

“Rates have settled from their highs,” says Ryan. “The condo market has softened recently, which has eased prices and allowed first-time homebuyers to take their time to find the right property without the stress of rapidly increasing prices and bidding wars.” 

Ryan met with us to break down what’s available for first-time home buyers, how the BC government helps in buying a home, and what to do if you feel like owning a BC home is out of reach. 

First-time home buyers’ programs at a glance:  

How the BC government can help you buy a home.

Think of this as your starter pack for buying a home in BC. The chart below compiles a handful of government programs and incentives designed to make homeownership a realistic dream. 

First Home Savings Account (FHSA)

A registered savings account that lets you save up to $40,000 tax-free for a first home. 

Key benefits: 

• Contributions are tax-deductible (like an RRSP). 
• Withdrawals for a qualifying home are tax-free (like a TFSA). 
• Can be combined with the Home Buyers’ Plan (HBP). 

You should know: 

• Maximum $8,000 contribution per year (carry forward unused room). 
• Must use within 15 years of opening or by age 71.

Home Buyers’ Plan (HBP)

Allows you to withdraw up to $60,000 from your RRSP to buy a first home.

Key benefits: 

• No tax on withdrawal. 
• Great for boosting your down payment. 

You should know: 

• Must repay within 15 years. 
• Repayments start the second year after withdrawal. 

Property Transfer Tax (PTT) Exemption

Exempts eligible first-time buyers from paying property transfer tax on homes up to $835,000 (recently increased from $500,000).

Key benefits: 

• Saves you thousands at the time of purchase. 

You should know: 

• Full exemption applies to homes $835K and under. 
• Partial exemption available up to $860K. 

GST/HST New Housing Rebate

Refund of part of the GST or HST paid on a new or substantially renovated home.

Key benefits: 

• Can save thousands on newly built or renovated homes. 

You should know: 

• Only applies to primary residences. 
• Partial rebates available for homes priced $350K–$450K; no rebate above $450K. 

First-Time Home Buyers’ Tax Credit (HBTC)

A federal tax credit to reduce the financial burden of homeownership in the first year; you can claim up to $10,000.

Key benefits: 

• Reduces your tax burden by up to $1,500 in credits. 

You should know: 

• Can split the tax credit with your spouse/common-law partner or claim it all yourself (even if they aren’t eligible). 

You can stack these incentives up, too. “You can use multiple programs that all help in different ways,” says Ryan. “For example, you can use the HBP and FHSA to help save for a down payment, while the PTT exemption for first-time home buyers will save you money when you purchase your first home.” 

A real-world success story: How one Vancity member became a BC homeowner.  

Incentives won’t make or break your path to buying a home in BC. But they can help you get there faster.  

Ryan tells us about a recent Vancity member who made it work. Spoiler alert: She didn’t win the lottery or have a secret millionaire uncle. 

“Recently, I had a first-time home buyer member who saved every dime of her down payment on her own,” says Ryan. “She withdrew funds from her RRSP through the HBP, utilized the FHSA and received the PTT exemption to purchase a great condo in Mount Pleasant. Vancity’s cashback also helped with closing costs.” 

”She would’ve become a BC homeowner on her own,” but all of these incentives and programs combined allowed her to purchase her first home sooner than she otherwise would’ve been able to,.” says Ryan.   

Planning and budgeting (try the Vancity cash flow calculator), saving, and incentives can all work together to get you to where you want to go. And a wealth or mortgage advisor can show you how to make the journey as smooth as possible.  

If you’re curious what getting a mortgage at the current rates looks like, try the Vancity mortgage calculator. You can see how much you can afford to borrow, estimate your mortgage payment, and compare your options. Or you can calculate the affordability of buying a home in BC.  

Think outside the BC box and consider co-buying or multiplexes. 

If you’re priced out of the detached home dream, you’re not alone. Canadians (and the credit unions that support them) have gotten creative with the possibilities of BC homeownership.  

A Mixer Mortgage™ at Vancity, for example, lets you combine your purchasing power with other people. “I’ve had couples come together to purchase a ‘Vancouver Special’ that had a separate living space for each couple,” says Ryan. “I’ve also had a group of individuals come together to buy land in a rural area where they could each build their own home.” 

Thanks to Bill 44 and zoning changes, you’ll be seeing more multiplex units hitting the market, like fourplexes on former single-family lots. 

“Stay tuned for Vancity’s Multiplex Financing program to be announced,” says Ryan. While the program will mostly be used by existing BC homeowners who want to turn single-family homes and lots into multiplexes, it’s going to impact first-time home buyers, too, since there will be more options available.  

“It’ll create net new housing units—think four $1,000,000 units instead of one $4,000,000 single-family home,” says Ryan. “That’ll create more opportunities for first-time home buyers. First-time home buyers could also combine this with the mixer mortgage to come together to purchase land and develop it into separate home units.” 

What does Vancity actually do for first-time home buyers? 

Vancity’s not just here for the paperwork. We’re your map, compass, and trail guide when the housing market feels like Everest. You won’t have to navigate government incentives, market shifts, and mortgage types on your own. 

“The best thing we do is take the time to understand your first-time home buying needs,” says Ryan. “We explain the process and steps to get you from where you are to where you want to be. Personally, I really like to spend the time to go into much greater detail with first-time home buyers to understand the how and why behind the numbers.” 

And after you’ve purchased your first home, Vancity can still help in ways you might not expect. “For existing BC homeowners who are looking to save money and reduce their home’s carbon emissions, we offer Home Energy Advice,” says Ryan. “We also support existing BC homeowners by offering laneway home financing and renovation loans to add secondary suites, which in turn provide net new housing units in our community.”  

Government programs help, but the right advice and support help them go further.

Incentives are great. But they’re not the end-all, be-all to buying your first home. Pair government programs with smart saving habits, a solid financial strategy, and help from Vancity’s professionals.  

Book a virtual session with a Vancity mobile mortgage specialist and get personalized advice tailored to your BC homeownership goals.