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Who Qualifies as a First-Time Home Buyer?

It depends on the program. The term is defined differently by the CRA (for tax/savings programs like HBP and FHSA) and by B.C. (for the Property Transfer Tax exemption).

Federal Definition (CRA – Tax & Savings Programs)

Under the Canada Revenue Agency (CRA), you’re considered a first-time home buyer if:

  • You did not live in a home you or your spouse/common-law partner owned during the current year (before the purchase or withdrawal) or in the four previous calendar years.

  • You’re not living with a spouse or partner who owned a home during that same period.

  • If you’re divorced or separated, you may still qualify if you’ve been living apart for at least 90 days and no longer occupy a home that you or your former spouse owned.

Programs You Qualify For

1. Home Buyers’ Plan (HBP)
Withdraw up to $60,000 (effective April 16 2024) from your RRSP to buy or build a qualifying home.

  • No tax on the withdrawal.

  • Must repay the amount to your RRSP within 15 years.

2. First Home Savings Account (FHSA)
A new savings program that combines features of an RRSP and TFSA.

  • Contribute up to $8,000 per year (to a $40,000 lifetime limit).

  • Contributions are tax-deductible, and qualifying home-purchase withdrawals are tax-free.

Provincial Definition (British Columbia)

In B.C., “first-time home buyer” status applies to the Property Transfer Tax (PTT) exemption only.

You qualify if you:

  • Are a Canadian citizen or permanent resident;

  • Have lived in B.C. for 12 consecutive months before the registration date or filed two B.C. income-tax returns in the past six years;

  • Have never owned a registered interest in a principal residence anywhere in the world; and

  • Will use the home as your principal residence within 92 days of registration.

In Summary

Authority Core Rule Programs / Benefits
CRA (Federal) No owned or occupied home in the current year or prior 4 years; some separation exceptions RRSP Home Buyers’ Plan ($60k limit)
First Home Savings Account ($8k/year to $40k total)
 Province of B.C. Never owned a principal-residence interest anywhere; must meet residency or tax-filing test Property Transfer Tax Exemption

Key Takeaways

  • The CRA definition resets after 4 years — you may re-qualify even if you previously owned a home.

  • The B.C. exemption is one-time only — once you’ve owned property, you cannot re-establish first-time status provincially.

  • Divorcees and long-term renters often regain federal eligibility but not the B.C. PTT exemption.

  • First-time buyers can combine federal programs (HBP + FHSA) with provincial tax savings for maximum benefit.

Further Reading