If you're a first-time homebuyer in Victoria, BC offers several programs and incentives to help you purchase. Many buyers don't realize what's available because the information isn't widely publicized. Let me walk you through the key programs.
First-Time Homebuyer Exemption from Property Transfer Tax
This is the single biggest benefit. If you're a first-time homebuyer purchasing a home up to $500,000, you pay zero Property Transfer Tax. Even if your purchase is above $500K, you pay PTT only on the amount above $500K. On a $750K purchase, you'd pay 3% only on the $250K above the threshold = $7,500 instead of the full $22,500. This is an enormous saving. Make absolutely sure your lawyer confirms you qualify and properly files this exemption. Many buyers leave thousands on the table by not claiming it correctly.
First-Time Homebuyer Deferral Program
If you don't qualify for the outright exemption (perhaps you own property outside Canada or have special circumstances), you might qualify for the deferral. Under this program, you can defer payment of PTT until you sell the property or it ceases to be your principal residence. This is a cash-flow benefit—you don't pay PTT at closing; you pay it later when you sell. While it doesn't eliminate the tax, it defers a potentially large payment, which helps with closing costs and finances.
Home Buyers Plan: RRSP Withdrawal
The federal Home Buyers Plan lets first-time buyers withdraw up to $35,000 from their RRSP (or $70,000 if both spouses are first-time buyers) tax-free to use as down payment. You then repay the amount to your RRSP over 15 years. This is a powerful tool if you have RRSP savings. You're essentially getting an interest-free loan from your own retirement account with a long repayment period. If you're thinking about buying within 1–2 years, maximize RRSP contributions now so you have a larger pool to access for down payment.
FTHB Incentive Tax Credit (Federal)
The federal government offers a non-refundable tax credit for first-time homebuyers. The credit is based on the first $500,000 of the home's purchase price and claims a percentage of that amount on your tax return. In 2026, this provides a tax benefit of roughly $750–$1,200 depending on your income level and marginal tax rate. It's not huge, but it's money back at tax time. Ensure your CPA or tax professional knows you're a first-time buyer so you don't miss this credit.
Provincial Programs and Grants
BC occasionally offers additional programs or grants for first-time buyers, though these have been limited in recent years. Check the BC Housing website and provincial government website for any current programs. Some programs are targeted at specific income levels or specific regions. These tend to come and go based on government policy. At the time of writing, the primary provincial benefit is the PTT exemption and deferral. Any additional programs should be confirmed with your realtor or lawyer.
Mortgage Default Insurance Reduction
If you're putting down less than 20%, you need mortgage default insurance. The insurance is expensive, but some lenders offer slightly better rates for first-time buyers or have partnerships reducing insurance costs. When shopping for mortgages, ask lenders specifically about first-time buyer rate reductions. The savings might be modest but are worth asking for.
Down Payment Assistance: Family Loans and Gifts
Many first-time buyers bridge their down payment gap with family gifts. Lenders typically allow you to receive gifts from immediate family to contribute toward down payment (though gifts must be documented, not loans). If family can help, this reduces the amount you need to borrow, which reduces mortgage costs and interest. This isn't a government program, but it's worth leveraging if available.
Spousal Planning for Dual First-Time Buyers
If you're married or in a common-law partnership and both are first-time buyers, you can leverage this for additional benefits. The Home Buyers Plan withdrawal limit doubles ($70,000 combined). You might qualify for different tax credits. Discuss with your CPA or tax professional how to optimize tax benefits when both spouses are first-time buyers.
Employer Programs and Assistance
Some employers offer home-buying assistance programs—down payment grants, favorable lending partnerships, or educational resources. If your employer offers benefits, ask your HR department about home-buying assistance. Some tech companies and government employers have robust first-time buyer support programs. If available, leverage this free or discounted help.
Working with the Right Professionals
First-time buyers should work with a lawyer who understands all available programs and ensures you claim exemptions properly. Also work with a mortgage broker who can access multiple lenders and find the best rate for first-time buyers. A realtor experienced with first-time buyers can guide you through the process and help you budget for all costs. Investing in the right team ensures you capture all available benefits.
Action Steps for First-Time Buyers
1) Confirm your first-time buyer status with a lawyer. 2) Consult a CPA about RRSP withdrawals and tax credits. 3) Meet with a mortgage broker to understand your pre-approval and available programs. 4) Document all current savings and potential down payment sources. 5) Research BC Housing and government websites for any additional current programs. 6) Get pre-approved before shopping, understanding exactly what you can afford including all costs. 7) Work with an experienced realtor to navigate the Victoria market. First-time buyers who do this homework maximize available benefits and make confident, informed purchasing decisions.
I'm Dan Juricic, a REALTOR® with RE/MAX Camosun. If you have questions about the Victoria market, I'd love to help. Call or text me at [phone] or visit danjuricic.com.