Every program you can use to buy your first home in BC, and the order to use them in

FHSA. RRSP. TFSA. GST. PTT.

Adam Beaudin-Ball, a Senior Financial Planner at Raymond James, starts his first-time buyer conversations with a cheeky apology: “If you like acronyms, you’ve come to the right place.”

The programs aren’t complicated, but it’s easy to leave money on the table if you don’t: 

• 1) save in the right order, and
• 2) tap into each program in order

Here’s a summary, and then we’ll break it down

Save in your First Home Savings Account (FHSA) first, then your RRSP up to $60,000, then your TFSA. When you buy, withdraw from your FHSA and use the RRSP Home Buyers’ Plan. When buying a new home, claim the GST rebate and the property transfer tax exemption at completion. Then claim the home buyers’ tax credit and repay your RRSP on schedule.

Step 1: Save in this order

1. First Home Savings Account (FHSA)

“Stop number one, without a doubt, is the First Home Savings Account,” Beaudin-Ball says.

You can contribute $8,000 a year, up to $40,000 in total. It does three things:

• your contributions lower your taxable income (i.e., they’re tax deductible)
• your money grows tax-free
• you withdraw it tax-free for your first home, and never pay it back

In BC, you can open one at age 19 and contribute as little as you want to start. Contribution room only starts building once the account exists, and you can carry forward unused contribution room to future years.

2. RRSP (up to $60,000)

The RRSP Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP for your first home. Once you’ve maxed out your FHSA, this is a great place to save. Your contributions are also tax-deductible. 

3. TFSA

You don’t get a deduction going in, but your money grows tax-free, and you can take it out anytime, for anything, tax-free. If you’re starting with a lump sum late in the year, Beaudin-Ball suggests putting $8,000 into the FHSA in November or December, another $8,000 in January, and the rest into your RRSP.

Step 2: Buy

Withdraw from your FHSA. It’s tax-free if you’re a first-time buyer, have a signed agreement to buy, and plan to live in the home within a year.

Use the RRSP Home Buyers’ Plan. You can use it on the same home as your FHSA. Think of it, though, like a loan from your future self. Take $60,000 in 2026, and you’ll repay $4,000 a year for 15 years, starting in 2028. If you miss a payment, it gets added to your taxable income.

Claim your tax breaks at completion. When buying new, the First-Time Home Buyers’ GST rebate and BC’s newly built home exemption apply at completion. Our breakdown of what a new home actually costs walks through the numbers.

Step 3: After you move in

Claim the First Time Home Buyers’ Tax Credit. On your tax return, it’s called the home buyers’ amount (line 31270). Claim $10,000 for the year you buy, and your federal taxes drop by 14% or up to $1,400. You don’t get a cheque back, but it reduces the tax you owe, so you need to owe at least that much tax to get the full benefit. If you’re buying with a partner, you can split the claim, but the total between you stays $10,000.

Repay your RRSP on time.

Live in the home. Tax exemptions come with occupancy rules. BC Notary Rimpy Sadhra has watched buyers move out too soon and get a bill from the province. “That first-time home-buyers’ exemption could be clawed back,” she says. Check the rules before you sell or rent it out.

FAQ

Should I put money in my FHSA or RRSP first?

FHSA first. Both lower your taxes, but you never repay an FHSA withdrawal for your first home. You do repay the RRSP Home Buyers’ Plan. If you don’t end up buying, you can move your FHSA into your RRSP without using any RRSP room. That makes FHSA-first even lower risk.

Can I use the FHSA and RRSP Home Buyers’ Plan on the same home?

Yes. One buyer can use up to $40,000 plus growth from an FHSA and $60,000 from an RRSP. If you and your partner both qualify as first-time buyers and you’ve both maxed out your accounts, you can access $200,000 plus the tax free FHSA growth.

Do I have to pay back the RRSP Home Buyers’ Plan?

Yes, over 15 years, starting the second year after you withdraw. So, if you buy in October 2026, you start repayment in 2028. Any missed payment gets added to your taxable income.

Sources: Canada Revenue Agency guidance on the FHSA, Home Buyers’ Plan and home buyers’ amount; Department of Finance Canada; Province of BC guidance on property transfer tax, with expert input from Senior Financial Planner Adam Beaudin-Ball, CFP, and Notary Public Rimpy Sadhra of West Coast Notaries.