Government Incentives First-Time Home Buyers in BC Should Know

It’s no secret that affordability has been one of Canadians’ top concerns in recent years when looking to purchase their first home. Fortunately, both the provincial and federal governments have developed and revised several incentives and programs specifically to help first-time homebuyers get a foot in the market and settle down in British Columbia. Let’s review the current incentives available to first-time home buyers in 2024-2025.

1. Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time home buyers to pull from their RRSP savings tax-free for their down payment. Up to $60,000 can be withdrawn tax-free (as of April 16, 2024 – an increase from $35,000!) per person purchasing the house, which means that you and a partner can potentially use up to $120,000 from your RRSPs towards your down payment. 

A couple things to keep in mind:

• You don’t need to withdraw the full amount to take advantage of the Home Buyers’ Plan, meaning you can leave some savings in your RRSP for retirement while still contributing to your down payment
• To keep withdrawals tax-free, they must be repaid into your RRSP within 15 years.