First-Time Home Buyer Programs Enhanced for 2025: New Opportunities in BC

Enhanced Support for 2025

Multiple government programs have been enhanced for 2025, with the First-Time Home Buyer Incentive increasing price thresholds to $850,000 in BC, new provincial down payment assistance, and expanded tax credits.

2024 vs. 2025 Program Enhancements

Previous Limits (2024)

• Maximum eligible home price: $750,000 (BC)
• Household income cap: $150,000
• Down payment support: Minimal or limited options
• Home Buyers' Tax Credit: $5,000 (up to $750 tax refund)

Enhanced Limits (2025)

• Maximum eligible home price: $850,000 (BC)
• Household income cap: $175,000
• New support: BC Down Payment Loan Program (up to $40,000 interest-free)
• Home Buyers' Tax Credit: Increased to $8,000 (up to $1,200 tax refund)

Federal Programs

First-Time Home Buyer Incentive (Enhanced)

Eligibility

• Household income must be $175,000 or less
• Home purchase price must not exceed $850,000 in British Columbia
• Applicant must be a first-time home buyer
• Property must be a primary residence

Benefits

• 5% shared equity available for resale (existing) homes
• 10% shared equity available for newly constructed homes
• No monthly repayment required
• Repayment due only when the home is sold, refinanced, or reaches 25 years

Enhanced Home Buyers' Tax Credit (2025 Update)

2025 Enhancements

• Increased to $8,000 (previously $5,000)
• Provides up to $1,200 in tax relief
• Can be applied toward eligible closing costs
• Available as a one-time credit per qualifying individual

Eligible Expenses

• Legal fees related to the purchase
• Professional home inspection services
• Appraisal fees required by the lender
• Title insurance and related closing charges

New BC Provincial Programs (2025)

BC First-Time Home Buyer Down Payment Loan (Expected to be finalized in 2025)

Program Details

• Up to $40,000 in interest-free loan support
• Covers up to 5% of the home's purchase price
• No monthly payments for the first 5 years
• Repayment required only upon sale or refinancing of the home

Eligibility

• Household income below $150,000
• Home purchase price below $800,000
• Must be a BC resident for at least 12 months
• Must qualify as a first-time home buyer in British Columbia

Enhanced Property Transfer Tax (PTT) Exemption

2025 Updates

• Full exemption for homes priced up to $835,000
• Partial exemption available up to $885,000
• Potential savings of over $13,000 in taxes
• Automatically applied at the time of purchase if eligible

Eligibility Requirements

• Must be a Canadian citizen or permanent resident
• Must have lived in BC for at least 12 consecutive months
• Must be a first-time buyer globally (not just in BC)
• Property must be used as a primary residence

RRSP Home Buyers' Plan Updates (2025)

Significant enhancements have been made to the RRSP Home Buyers' Plan (HBP) in 2025, expanding both contribution limits and access flexibility.

Increased Withdrawal Limits

• Individual withdrawal limit: $60,000 (up from $35,000)
• Couple withdrawal limit: $120,000 combined
• Repayment period: 15 years (unchanged)
• Tax treatment: Withdrawals remain tax-free if repaid as scheduled

New Flexibility and Access

• Requalification window: Buyers can re-use the HBP after 4 full years from previous use
• Separation/divorce clause: Newly separated individuals may requalify for the program under revised rules
• Disability accommodations: Expanded provisions for persons with disabilities or those purchasing on their behalf

Real-World Examples

Example 1: Vancouver Condo Purchase

Purchase Details

• Home price: $750,000
• Household income: $140,000
• Personal savings: $50,000
• RRSP available: $80,000

Available Assistance

• FTHBI shared equity: $75,000 (10%)
• BC down payment loan: $37,500 (5%)
• RRSP HBP: $60,000
• PTT exemption: $11,500 saved
• Tax credit: $1,200

Total Down Payment Assistance: $172,500

Reduces required cash down payment from $150,000 to just $27,500

Example 2: Surrey Townhouse

Purchase Details

• Home price: $820,000
• Household income: $160,000
• Personal savings: $70,000
• RRSP available: $100,000

Available Assistance

• FTHBI shared equity: $41,000 (5%)
• BC down payment loan: $40,000 (max)
• RRSP HBP: $60,000
• PTT partial exemption: $8,500 saved
• Tax credit: $1,200

Total Down Payment Assistance: $141,000

Reduces required cash down payment from $164,000 to just $23,000

How to Apply

Step-by-Step Process

Get Pre-Approved

Work with a mortgage broker to understand your borrowing capacity and program eligibility

Apply for Programs

Submit applications for FTHBI, BC down payment loan, and RRSP HBP simultaneously

Find Your Home

Shop within program price limits and ensure property meets eligibility requirements

Complete Purchase

Coordinate with lawyer to ensure all programs are properly applied at closing

Ready to Take Advantage of These Enhanced Programs?

With over $170,000 in potential assistance available, 2025 is an excellent year for first-time homebuyers. Let's review your eligibility and create a strategy to maximize your benefits.

Free Program Review Start Application

Disclaimer: Program details and eligibility requirements are subject to change. This information is current as of June 2025 and is for educational purposes only. Always verify current program details and consult with a qualified mortgage professional for personalized advice.