First-Time Home Buyer Incentive in Surrey BC Explained

Navigating the path to homeownership in Surrey can be challenging, especially with BC's high property prices. Understanding the First-Time Home Buyer Incentive and other available programs is essential to making homeownership more affordable and accessible. While the federal First-Time Home Buyer Incentive (FTHBI) program closed to new applications in March 2024, several other valuable programs and incentives remain available to first-time buyers in Surrey throughout 2026.

At the Rob Visnjak Real Estate Group, we help first-time buyers throughout Surrey and the Fraser Valley understand and access all available programs to make homeownership achievable. While the FTHBI program itself is no longer accepting new participants, British Columbia offers robust provincial incentives, and the federal government continues to provide several other programs that can save you between $20,000-$40,000 or more when combined strategically. Understanding what you qualify for directly affects how much home you can afford and how much cash you'll need at closing.

This comprehensive guide will explain what happened to the FTHBI program, detail all current programs available to Surrey first-time buyers in 2026, and show you how to maximize your savings by combining multiple incentives. Whether you're looking in Newton, Cloverdale, South Surrey, or other Surrey neighborhoods, these programs can make a significant difference in your ability to purchase your first home.

Key Takeaways

• FTHBI Closed: The federal First-Time Home Buyer Incentive stopped accepting applications in March 2024.

• BC Property Transfer Tax Exemption: Worth up to $14,000+ for qualifying first-time buyers in Surrey.

• RRSP Home Buyers' Plan: Withdraw up to $60,000 tax-free from your RRSP for a down payment.

• First Home Savings Account: Save up to $40,000 tax-free specifically for buying your first home.

• GST/HST Rebate: Recover some tax paid on new home purchases under $450,000.

What Happened to the First-Time Home Buyer Incentive (FTHBI)?

The First-Time Home Buyer Incentive (FTHBI) was a shared equity mortgage program launched by the Canadian government in 2019 to help make homeownership more affordable for qualifying buyers. Under this program, the government would provide 5-10% of the purchase price as a shared equity mortgage—10% for newly constructed homes and 5% for existing (resale) homes. This reduced the amount buyers needed to borrow and lowered monthly mortgage payments by approximately $100-$300 per month.

However, CMHC stopped accepting new applications for the FTHBI on March 21, 2024. The program has been discontinued and is no longer available to new applicants. If you already have an existing FTHBI loan on a property you purchased before the closure, your obligations remain unchanged, including repayment requirements when you sell the property or after 25 years.

The federal government discontinued the program as part of broader housing policy changes. While this shared equity approach is no longer available, several other valuable programs remain active and can provide substantial assistance to Surrey first-time home buyers in 2026. The combined value of remaining programs can actually exceed what the FTHBI alone provided.

BC Property Transfer Tax Exemption for First-Time Buyers

The most valuable program for Surrey first-time home buyers is the BC Property Transfer Tax (PTT) exemption. Property transfer tax is normally paid when you purchase property in British Columbia, calculated as 1% on the first $200,000, 2% on the portion between $200,000 and $2 million, and 3% on amounts over $2 million. For first-time buyers, BC offers a full or partial exemption.

First-time home buyers are exempt from paying property transfer tax on the first $500,000 of the purchase price on properties valued up to $835,000. For properties between $835,000 and $860,000, a partial exemption applies. This exemption can save Surrey buyers up to $8,000 on a $500,000 home, and up to $14,000+ on properties approaching the upper threshold.

To qualify for this exemption in Surrey, you must be a Canadian citizen or permanent resident, have lived in BC for 12 consecutive months immediately before the date you register your property, or have filed at least 2 income tax returns as a BC resident in the past 6 years, never have owned a principal residence anywhere in the world, and occupy the property as your principal residence within 92 days of registration.

Home Buyers' Plan (HBP) - RRSP Withdrawal

The Home Buyers' Plan allows you to withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home without paying tax on the withdrawal. If you're buying with a spouse or partner who also has RRSPs, you can each withdraw up to $60,000, providing up to $120,000 combined for your down payment.

The funds must be repaid to your RRSP over 15 years, starting the second year after withdrawal. For withdrawals made by the end of 2025, there's an extended 5-year grace period before repayment begins. If you don't make the required annual repayment, that amount is added to your taxable income for that year.

To use the HBP for a Surrey home purchase, you must be a first-time home buyer (no home ownership in the past 4 years), the funds must have been in your RRSP for at least 90 days before withdrawal, and you must have a written agreement to buy or build a qualifying home. This program works especially well if you've been contributing to RRSPs for several years and have accumulated savings that can be redirected toward your down payment.

First Home Savings Account (FHSA)

The First Home Savings Account is Canada's newest savings tool specifically designed for first-time home buyers. Introduced in 2023, the FHSA combines the best features of RRSPs and TFSAs, offering both a tax deduction for contributions and tax-free withdrawals for qualifying home purchases.

You can contribute up to $8,000 per year with a lifetime contribution limit of $40,000. Contributions are tax-deductible (like an RRSP), reducing your taxable income, while qualified withdrawals for purchasing your first home are tax-free (like a TFSA). The account remains open for 15 years or until the year you turn 71, whichever comes first.

The FHSA can be combined with the Home Buyers' Plan, potentially giving Surrey buyers access to $100,000+ tax-advantaged savings ($40,000 from FHSA + $60,000 from HBP) for their down payment. If you're planning to buy in Surrey within the next few years, opening an FHSA now and contributing the maximum annually should be a top priority.

First-Time Home Buyers' Tax Credit

The First-Time Home Buyers' Tax Credit (HBTC) is a non-refundable federal tax credit that allows you to claim $10,000 on your tax return for the year you buy your home, resulting in up to $1,500 in federal tax relief. While modest compared to other programs, it's an easy credit to claim and every dollar helps when buying in Surrey's market.

To qualify, neither you nor your spouse/common-law partner can have lived in another home owned by either of you in the year of purchase or the preceding four calendar years. The home must be registered in your name under the land registration system and located in Canada. You must intend to occupy it as your principal residence within one year of purchase.

Claim this credit when you file your income tax return for the year you purchased your Surrey home. The credit can be split between spouses if the home is jointly owned, but the maximum total benefit is still $1,500.​

GST/HST New Housing Rebate

If you're purchasing a newly constructed home or condo in Surrey, you may be eligible for the GST/HST New Housing Rebate, which can recover a portion of the GST paid on qualifying new homes. The federal rebate provides up to 36% of the federal portion of the GST paid, with the maximum rebate available on homes priced up to $450,000 (partial rebate available up to $500,000).

For new residential rental properties in BC, the government recently announced a rebate that could return up to 100% of the GST paid. This applies specifically to qualifying purpose-built rental housing to incentivize new rental construction.​

To qualify for the standard new housing rebate in Surrey, the home must be newly constructed or substantially renovated, purchased for use as your primary residence, and meet the price thresholds. On a $400,000 new condo in Surrey, this rebate could save you approximately $6,300, making it a significant benefit for buyers considering new construction.

Multi-Generational Home Renovation Tax Credit

The Multi-Generational Home Renovation Tax Credit is a newer program that provides up to $7,500 in tax credits for renovations that create a secondary suite for a senior or person with a disability. This applies if you're creating a self-contained unit (with its own bathroom, kitchen, and entrance) within or attached to your home for a qualifying relative.

This credit is particularly relevant in Surrey where many families purchase homes with the intention of housing multiple generations. If you're buying a home in Surrey that you plan to renovate to include a suite for parents or grandparents, this credit can offset some of the renovation costs.​

Eligible expenses include creating or renovating a secondary unit, adding or modifying entrance, kitchen, or bathroom facilities, and structural modifications to allow accessibility. Keep all receipts and documentation for qualifying renovations completed in 2023 or later.​

CMHC-Insured Mortgages with Low Down Payments

While not a direct incentive, understanding CMHC mortgage insurance rules is crucial for Surrey first-time buyers who don't have a full 20% down payment. With CMHC insurance, you can purchase a home with as little as 5% down on the first $500,000 and 10% down on the remaining amount, up to a maximum purchase price of $1.5 million.

The minimum down payment requirements are: 5% on the first $500,000 of the home price, 10% on the portion between $500,000 and $1 million, and 20% on any amount over $1 million. For example, on an $800,000 home in Surrey, you would need a minimum down payment of $55,000 (5% of $500,000 = $25,000 + 10% of $300,000 = $30,000).

CMHC insurance premiums range from 0.6% to 4.50% of the mortgage amount depending on your down payment percentage. While this is an additional cost, it allows you to enter the Surrey housing market sooner rather than waiting years to save a full 20% down payment.​

How to Maximize Your Benefits in Surrey

The key to maximizing first-time home buyer benefits in Surrey is understanding how to combine multiple programs strategically. Here's an example of how a Surrey buyer could potentially save: BC Property Transfer Tax exemption saves up to $8,000-$14,000, RRSP Home Buyers' Plan provides $60,000 tax-free for down payment, First Home Savings Account contributes $40,000 tax-free, First-Time Home Buyers' Tax Credit reduces taxes by $1,500, and GST/HST Rebate on new homes saves up to $6,300.

Start planning early by opening an FHSA as soon as possible to maximize contributions, contributing to RRSPs if you plan to use the HBP, researching qualifying Surrey properties in your price range within the PTT exemption limits, and getting pre-approved for a mortgage to understand your buying power.

Work with professionals who understand these programs including a realtor familiar with first-time buyer needs, a mortgage broker who can structure financing to maximize benefits, and an accountant to ensure you claim all eligible tax credits. Understanding the home buying process in Surrey while leveraging these programs sets you up for success.

Important Considerations for Surrey Buyers

When using these programs to buy in Surrey, remember that property values in Surrey vary significantly by neighborhood. Areas like South Surrey and Panorama Ridge have higher prices that may exceed PTT exemption limits, while Newton and parts of Whalley offer more affordable options that qualify for full exemptions.​

Surrey's competitive market means you need to be ready to move quickly when the right property appears. Having your FHSA, HBP withdrawals, and mortgage pre-approval in place before you start house hunting puts you in a strong position to make competitive offers.​

Consider future repayment obligations when using the HBP. While the funds are tax-free initially, you must repay them to your RRSP over 15 years. Budget for these future contributions when calculating long-term affordability.

Frequently Asked Questions (FAQ)

1. Is the First-Time Home Buyer Incentive (FTHBI) still available in 2026?
No, the FTHBI stopped accepting new applications in March 2024 and is no longer available to new buyers.

2. What is the most valuable first-time buyer program in Surrey?
The BC Property Transfer Tax exemption, which can save you $8,000-$14,000+ depending on your purchase price.

3. Can I use both the FHSA and Home Buyers' Plan together?
Yes, you can combine both programs to access up to $100,000 in tax-advantaged savings for your down payment.

4. What is the minimum down payment for first-time buyers in Surrey?
5% on the first $500,000 and 10% on the remaining amount up to $1.5 million total.

5. Do I have to repay money withdrawn from my RRSP under the Home Buyers' Plan?
Yes, you must repay the full amount to your RRSP over 15 years, starting the second year after withdrawal.

6. What is the maximum purchase price to qualify for the full PTT exemption?
Properties up to $500,000 are fully exempt, with partial exemptions available between $835,000 and $860,000.

7. Can I claim the First-Time Home Buyers' Tax Credit if my spouse owned a home?
No, neither you nor your spouse can have owned a home in the past 4 years to qualify.

8. Are new condos in Surrey eligible for the GST/HST rebate?
Yes, if the purchase price is under $450,000 for the full rebate, or up to $500,000 for a partial rebate.

Conclusion

While the First-Time Home Buyer Incentive program is no longer available to new applicants in Surrey, numerous other valuable programs remain that can save you tens of thousands of dollars when purchasing your first home. By strategically combining the BC Property Transfer Tax exemption, RRSP Home Buyers' Plan, First Home Savings Account, and other available programs, Surrey first-time buyers can significantly reduce the financial barriers to homeownership. The key is understanding what you qualify for, planning ahead to maximize benefits, and working with professionals who can guide you through the process.

The Rob Visnjak Real Estate Group specializes in helping first-time buyers navigate Surrey's housing market and access all available programs and incentives. Our experience working with buyers throughout Surrey's diverse neighborhoods—from affordable options in Newton to family-friendly communities in Cloverdale—ensures you find the right home while maximizing your available benefits. If you're ready to start your first-time home buying journey in Surrey, we invite you to connect with us today. Let us help you turn your homeownership dreams into reality by leveraging every available advantage.