If You’re a First Time Home Buyer, Read This Or Miss Out on Thousands of Dollars in Savings

As a first time home buyer, there are two major benefits that the government has provided you to help you save money!

First Time Home Buyer’s Program – The BC provincial government has offered first time home buyers a break on the Property Transfer Tax (PTT) when buying their first home.

What is the PTT?

  • PTT is a tax charged to the buyer on every single property purchase. If you are purchasing a new property, its an additional tax in addition to the sales tax (GST/Transitional Tax)

How much is it?

  • Calculated as 1% of the first $200,000 and 2% of the balance
  • Example: $400,000 purchase, PTT = $6000
  • This is a tax that is part of your closing costs and must be paid up front. It can not be added to your mortgage.

When does a first time buyer qualify?

For more information and details on the this program, please visit the Government of BC Website: http://www2.gov.bc.ca/gov/topic.page?id=BBD16E2D7C1841A7BBD420E3AC5380F1

Home Buyer’s Plan – The Federal government offers the Home Buyers Plan (HBP), which allows first time home buyers to borrow up to $25,000 from their RRSP’s to use towards their down payment) up to $50,000 for a couple).

  • The major benefit of this is that because you are tapping into RRSP’s, you are getting a tax break on your down payment – using pre-tax dollars.


  • You are required to repay this “RRSP” loan within 15 years (but there are no restrictions around repaying it sooner).
  • The first payment must be made within 2 years of your home purchase
  • The minimum repayment each year would be 1/15th of the amount you borrowed.
  • If you do not make your annual minimum payment, the full amount will need to be reported as taxable income when you file your taxes.
  • If you make a repayment but it is less than the minimum amount, the difference will need to be reported as taxable income when you file your taxes.
  • If your annual repayment is more than the minimum amount, then we can re-calculate your minimum annual repayment moving forward.
  • When you make this repayment, you need to make sure it is reported properly when you file your taxes so the government knows this repayment was specifically a repayment towards your RRSP loan and not just a new RRSP contribution


  • Can not have owned a home in the last 5 years
  • Must sign an agreement to buy a home and must intend to live in it as a primary residence within a year
  • If you have used the home buyers plan in the past, you can not have an outstanding balance
  • You must make the withdrawal within 30 days of taking title of the home
  • The money has to be in the RRSP account for a minimum of 90 days prior to the withdrawal

For more information and details on this program, please visit the CRA website: http://www.cra-arc.gc.ca/hbp/