New Benefits for First-Time Home Buyers in Vancouver

Posted on Feb 08, 2025


At Lift Realty Group, we’re here to help you unlock these opportunities.
 
Here’s what first-time buyers need to know in 2025:

1. Enhanced Federal Programs

Tax-Free First Home Savings Account (FHSA):
  • Launched in 2023, the FHSA allows first-time buyers to save **
  • up to 40,000tax−free∗∗(annual contribution limit:
  • 40,000tax−free∗∗(annualcontributionlimit:8,000).
  • Contributions are tax-deductible, and withdrawals for a down payment are tax-free. This is a game-changer
  • for building a down payment faster!
Increased Home Buyers’ Plan (HBP) Withdrawal Limit:
  • First-time buyers can now withdraw **up to 60,000∗∗(upfrom60,000∗∗(upfrom35,000)
  • from their RRSPs tax-free to fund a down payment. Repayment terms remain flexible (15 years).

2. BC-Specific Incentives

BC First-Time Home Buyers’ Program:
  • Qualifying buyers are exempt from paying the Property Transfer Tax (PTT) on homes up to **835,000∗∗(saving up to 835,000∗∗(saving upto18,000). For properties above this threshold, partial exemptions apply.
BC HOME Partnership Program:
  • While the original shared equity program closed in 2023, the province has introduced new BC Builds initiatives to increase affordable housing supply. Stay tuned for future down payment assistance programs targeting middle-income buyers.
  • First-Time Home Buyer Savings Account (FTHBSA):
  • BC residents can open a registered account to save for a down payment tax-free (similar to the FHSA). Combined with federal programs, this accelerates savings growth.

3. Municipal Support in Metro Vancouver

Vancouver’s Empty Homes Tax Exemptions:
  • The city’s vacancy tax (now 5% of a property’s assessed value) has pushed more secondary suites and laneway homes into the rental market, offering affordable options for buyers open to revenue-generating properties.
Pre-Sale Condo Opportunities:
  • Developments in emerging neighborhoods like Brentwood, River District, and Squamish offer lower pre-sale prices and flexible payment plans.

4. Lower Mortgage Insurance PremiumsFor buyers with less than 20% down payment, Canada’s federal government has reduced CMHC mortgage insurance premiums by up to 25%. This lowers upfront costs and monthly payments.

5. Interest Rate ReliefWhile rates remain higher than 2020-2021 levels, the Bank of Canada’s recent rate pause (as of July 2024) offers stability. 

First-time buyers can also explore:
  • Fixed vs. Variable Rate Mortgages: Lock in a rate or bet on future drops.
  • Extended Amortization Periods: Stretch payments over 30 years to reduce monthly costs (for insured mortgages).
  • How Lift Realty Group Helps First-Time BuyersNavigating these programs requires expertise—and that’s where we shine. 
Our team provides:
  • Personalized Financial Roadmaps: We’ll match you with the best incentives for your budget.
  • Pre-Approval Partnerships: Connect with trusted lenders to maximize your borrowing power.
  • Off-Market Listings: Access hidden gems before they hit crowded platforms like MLS.

Tips to Maximize Your Benefits

  1. Start Saving Early: Combine FHSA and FTHBSA accounts for turbocharged savings.
  2. Improve Your Credit Score: Aim for 680+ to secure better rates.
  3. Consider “Fixer-Uppers”: Homes needing renovations often sell below market value, leaving room for equity growth.
Final WordVancouver’s real estate market is competitive, but with strategic planning and the right support, your first home is within reach. At Lift Realty Group, we specialize in turning “impossible” into “sold.” Let us help you unlock your homeownership dreams in 2024. Contact Lift Realty Group today for a free first-time buyer consultation!

Lift Realty Group – Empowering Vancouver’s Next Generation of Homeowners.

This update highlights current programs, actionable advice, and Lift Realty’s role in guiding buyers. Adjust rates or policies as needed to reflect real-time changes!
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