A qualifying buyer may be able to use the federal first-time home buyers' GST/HST rebate on an eligible new home, BC's property transfer tax exemption, an FHSA qualifying withdrawal, and the federal Home Buyers' Plan for the same purchase. They are separate programs: qualification for one does not establish qualification for the others.
Key facts
- For a fully eligible transfer, BC's current exemption is full at $500,000 or less, $8,000 above $500,000 through $835,000, and phases out below $860,000.
- The CRA says first-year FHSA participation room is $8,000, subject to eligibility and account rules.
- The current Home Buyers' Plan withdrawal limit is $60,000, subject to its conditions and repayment rules.
- Applications are open for the federal first-time home buyers' GST/HST rebate, which can return up to $50,000 on an eligible new home at $1 million or less and phases out to $1.5 million.
BC property transfer tax relief
The provincial benefit depends on fair market value, eligible ownership percentage, property size, improvements, registration date, buyer history, residency, and occupancy conditions. The threshold alone does not establish the exemption.
FHSA and Home Buyers' Plan
The FHSA provides deductible contributions and potentially non-taxable qualifying withdrawals. The Home Buyers' Plan permits qualifying RRSP withdrawals and has repayment rules. The CRA states both can be used for the same qualifying home when each program's conditions are met.
The new-home GST rebate is a separate federal test
The first-time home buyers' GST/HST rebate is now open for applications. It applies to eligible new or substantially renovated primary residences, not ordinary resale purchases. The maximum is $50,000 at $1 million or less, phases out between $1 million and $1.5 million, and depends on buyer, agreement, construction, occupancy, and application timing conditions.
Build one closing-cash schedule
Record which funds are liquid, withdrawal-processing times, deposit timing, lender documentation, tax estimates, and the closing date. A tax benefit may not solve a timing gap if the funds are unavailable when the deposit or completion money is due.
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