Buying your first home is a huge milestone — but in a competitive and high-cost market like BC, it can also feel overwhelming.

The good news? If you're buying your first home in BC, there are powerful grants and incentives designed to help you save tens of thousands of dollars on your purchase.

In this guide, we’ll break down 7 essential grants, exemptions, and incentives at the provincial and federal level that will save you thousands of dollars on your first home in Kelowna, the Okanagan Valley, or anywhere across the province of British Columbia, Canada.

Incentives for First Time Buyers in BC, Canada

Provincial Incentives for British Columbia Buyers

1. First-Time Home Buyers’ Program (Property Transfer Tax Exemption)

The First-Time Home Buyers’ Program offers a full or partial exemption from Property Transfer Tax (PTT) — potentially saving you up to $15,000 when you purchase your first home.

This program helps reduce one of the biggest upfront costs for first-time buyers, freeing up cash for renovations, furnishings, or savings.

Exemption Details:

• Full exemption for homes valued up to $835,000

• Partial exemption for homes valued between $835,000 and $860,000

Eligibility Criteria:

• Must be a Canadian citizen or permanent resident

• Must have lived in BC for at least 12 consecutive months immediately before the purchase, or filed BC income taxes for 2 of the last 6 years

• Must have never owned a principal residence anywhere in the world

• Must not have previously received a first-time home buyers' exemption
  
  

Property Requirements:

• Must be used as your principal residence

• Home’s fair market value must be $835,000 or less (as of April 1, 2024)

• Property must be 0.5 hectares (1.24 acres) or smaller

• Must contain only residential improvements
  

2. Newly Built Home Exemption: Save Up to $20,000 in Property Transfer Tax

If you're eyeing a brand-new build in Kelowna or the Okanagan, the Newly Built Home Exemption incentive can significantly lower your closing costs.

The Newly Built Home Exemption helps you save on the Property Transfer Tax (PTT) when purchasing a newly built home.

Normally, you pay 1% on the first $200K, and 2% on the amount from $200K to $2M. The new Apr. 2024 exemption can save you up to $20,000 on a home with a fair market value of $1.1M.

Eligibility Criteria:

• The home must be newly constructed, newly subdivided, or converted from an existing land improvement

• Property size of 0.5 hectares (1.24 acres) or smaller

• Fair market value of $1.1M or less

• Must be intended as your principal residence (not an investment property)

Exemption Details:

• Full exemption for homes with a fair market value up to $1.1 million (the allowable exemption amount increased from $750K on April 1, 2024)

• Partial exemption for homes valued between $1.1 million and $1.15 million
  
  

View MLS® listings for newly built homes in Kelowna

Source: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/newly-built-home-exemption

3. BC Home Owner Grant: Save Up to $770 on Annual Property Taxes

The BC Home Owner Grant reduces your annual property taxes by $570 to $770 depending on your location in the province.

Over the course of a 30 year mortgage, this grant can save a total of $17,100 to $23,100 in property tax payments, making home ownership more affordable over the long term.

Eligibility:

• The property's assessed value must be under $2,175,000 (2025 threshold)

• The property must be your principal residence

Grant Amounts:

• $570 for homes in Metro Vancouver, Fraser Valley, and the Capital Regional District

• $770 for homes elsewhere in BC (including Okanagan & Kelowna real estate listings)
  
  

Source: https://www.gov.bc.ca/homeownergrant

Federal Incentives

4. First Home Savings Account (FHSA): Save Up to $40,000 Tax-Free

The FHSA lets first-time homebuyers across Canada contribute up to $40,000 tax-free toward a down payment, combining the best features of an RRSP (Registered Retirement Savings Plan) and a TFSA (Tax-Free Savings Account).

This account supercharges your savings by giving you both immediate and long-term tax advantages — an essential tool for building a down payment faster.

Contribution Limits:

• Up to $8,000 per year

• Lifetime maximum contribution of $40,000
  

Tax Benefits:

• Contributions are tax-deductible, jus like an RRSP

• Withdrawals to buy a qualifying home are tax-free (like a TFSA)
  
  

5. Home Buyers’ Tax Credit (HBTC) — Save Up to $1,500 on Your Taxes

The HBTC gives first-time home buyers a non-refundable tax credit worth up to $1,500, putting some hard cash back in your pocket at tax time and offsetting the total cost of buying a new home.

Credit Amount:

• Claim up to $10,000 on your tax return

• Results in about $1,500 in tax relief
  
  

Eligibility Criteria:

• You or your spouse/common-law partner must have purchased a qualifying home

• Neither of you must have owned a home in the year of acquisition or the four preceding years

6. GST/HST New Housing Rebate: Save Up to $8,750 on Taxes Paid

The GST/HST new housing rebate lets you recover a portion of the GST/HST paid on a new or substantially renovated home — saving you up to $8,750.

This rebate lowers the effective purchase price of new homes, helping you afford a new construction home as a first-time buyer.

Rebate Amount:

• Up to 36% of the GST paid, capped at $6,300 federally.

Eligibility Criteria:

• The home's fair market value must be under $450,000 for full federal rebates

• The home must be your primary place of residence
  

Source: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4028/gst-hst-new-housing-rebate.html

7. 30-Year Mortgage Terms: Lower Monthly Payments

New changes to federal mortgage regulations mean you can qualify for 30-year mortgage amortizations on insured mortgages.

With a 30 year amortization, you spread the cost over an additional five years, reducing your monthly payments and possibly making your budgeting process a bit easier.

Eligibility Criteria:

• Must be a first-time homebuyer

• Mortgage must be insured (usually required with less than 20% down payment)
  
  

Lower monthly payments can be the difference between qualifying for your dream home — or missing out.

On the downside, you’ll pay far more in interest compared to a 25-year mortgage.

Ready to Buy Your First Home in Kelowna or the Okanagan Valley?

When you're buying your first home, knowledge is power — and taking advantage of the right grants and incentives can save you tens of thousands of dollars.

But navigating the fine print, eligibility rules, and fast-paced BC real estate market can be overwhelming on your own.

That’s where we come in.

At Vantage West Realty, we specialize in helping first-time buyers succeed — finding the right home in the right neighborhood in the Okanagan Valley, securing the right financing, and making the most of every available incentive.

Our team knows the ins and outs of the BC and federal programs, and we'll guide you every step of the way to maximize your savings and set you up for success.

Ready to start your journey to homeownership?

Reach out to Vantage West Realty today at 1-250-717-3133 or send us a message — and let’s open the door to your future together!

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