First-Time Home Buyer in Kelowna?

First-Time Home Buyer in Kelowna? Your Complete Guide to Rebates, Exemptions & Incentives (BC + Canada)

Buying your first home in Kelowna is exciting—but it can also feel overwhelming. Many buyers ask the same questions:

• How much cash do I really need?

• What rebates or tax breaks do I qualify for?

• Am I missing out on free money?

This guide breaks down every rebate, exemption, and incentive available to first-time buyers in Kelowna and across Canada, so you can keep more money in your pocket and get into a home sooner.

Quick Wins: What You Could Save

• BC Property Transfer Tax (PTT) – First-Time Buyer Exemption: Full or partial relief if your home price fits BC’s thresholds.

• Newly Built Home PTT Exemption: Full savings on new homes up to $1.1M (partial up to $1.15M).

• Federal GST Rebate (NEW in 2025): Up to $50,000 back on new homes (full up to $1M; phased to $1.5M).

• Home Buyers’ Tax Credit (HBTC): $1,500 at tax time.

• First Home Savings Account (FHSA): Contribute up to $8,000/year (lifetime $40,000). Tax-deductible + tax-free growth.

• Home Buyers’ Plan (HBP): Withdraw up to $60,000 per person from RRSPs for your down payment.

• BC Home Owner Grant: Cut annual property taxes by up to $770.

• 💡 Westbank First Nation Leasehold Tip: PTT doesn’t apply on WFN land, but leasehold financing works differently—know the pros and cons.

The Big Two in BC: PTT Exemptions

1. First-Time Home Buyers’ PTT Exemption

• Full exemption at or under BC’s price threshold.

• Partial exemption above the limit, up to the phase-out cap.

• Must be a Canadian citizen/PR, meet BC residency rules, have never owned a principal residence, move in within 92 days, and live there at least 1 year.

• Why it matters: PTT is 1% on the first $200K + 2% up to $2M. This exemption can save ~$8K–$13K on an entry-level Kelowna home.

2. Newly Built Home PTT Exemption

• Full exemption up to $1.1M; partial up to $1.15M.

• Applies to presales, new construction, substantial renos, new strata lots, or conversions.

• Why it matters: On a $1.1M new home, this saves ~$20,000 in PTT alone.

Federal Programs You Can Stack

• HBTC (Tax Credit) → Up to $1,500.

• FHSA (New Savings Account) → Tax-deductible contributions + tax-free growth + tax-free withdrawals.

• HBP (RRSP Withdrawals) → Up to $60,000 per person; repay over 15 years.

• Federal GST Rebate (2025) → Full 5% rebate up to $1M; partial up to $1.5M (for builder purchases, owner-builds, and co-ops).

Ongoing Savings After You Move In

• BC Home Owner Grant → Save up to $770/year on property taxes (more for seniors, veterans, and people with disabilities).

Real-World Kelowna Examples

Example A — $750,000 Resale Home

• PTT Exemption: $0 PTT (vs. ~$13,000 without)

• HBTC: $1,500

• FHSA Tax Savings: ~$2,400 (30% tax bracket, $8,000 contribution)

• HBP: $20,000 RRSP withdrawal for down payment

• Home Owner Grant: ~$770
  👉 Immediate benefit: ~$17,670 + $20,000 down-payment liquidity.

Example B — $1,050,000 Brand-New Home

• PTT Exemption: Full ($18K–$20K saved)

• GST Rebate: Partial (since between $1M–$1.5M)

• Plus HBTC, FHSA, HBP, and Home Owner Grant
  👉 Total savings easily in the tens of thousands.

Am I Eligible? (Plain-English Checklist)

✅ Canadian citizen/PR
✅ Meet BC residency rules
✅ Never owned a principal residence
✅ Will move in within 92 days & live there 1+ year
✅ Buying a primary residence (not investment)
✅ Purchase within price thresholds for rebates

Common Myths (Busted)

❌ “I can only use one program.” → False. You can stack multiple (PTT, FHSA, HBP, HBTC, GST rebate).
❌ “The FHSA is just a savings account.” → It’s more powerful: RRSP-style deduction + TFSA-style growth.
❌ “Leasehold is always better because no PTT.” → Not always. Leaseholds come with different financing and resale factors.

Disclaimer

Rules and thresholds can change. Eligibility depends on your situation. Always confirm details with your lender, lawyer, accountant, or government sources before making decisions.

Ready to Take the First Step?

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• 👋 Talk to us: 

Mark and Maddie Coons

Selling Kelowna Real Estate Group

Tel: 778-744-0872

email: [email protected]