Buying your first home can feel overwhelming, especially with rising real estate prices in BC. The First Home Savings Account (FHSA) is a new tool designed to help first-time homebuyers save more efficiently while enjoying tax benefits.

What is the FHSA?
The FHSA is a registered account that combines the benefits of an RRSP and a TFSA. Canadians can contribute up to $8,000 per year (with a lifetime limit of $40,000) toward their first home. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free.

Who Can Open an FHSA?

• Must be a Canadian resident
• 18 years or older
• First-time homebuyer, meaning you haven’t owned a home in the past four years

Qualifying Withdrawals
To use your FHSA funds tax-free, withdrawals must meet certain criteria:

1. First home purchase: The money must be used to buy or build your first home.
2. Written agreement to buy or build: You must have a purchase or construction agreement.
3. Timing: Funds must be withdrawn in the same calendar year as the home purchase or within a short period around the purchase date.
4. Lifetime limit: You cannot withdraw more than your available FHSA balance.

Non-qualifying withdrawals are taxable, so it’s important to plan carefully.

Why the FHSA is Useful

• Tax Savings: Contributions reduce your taxable income, and qualifying withdrawals are tax-free.
• Flexibility: Unused contribution room carries forward, and FHSA funds can even be transferred to an RRSP or RRIF if unused.
• Combine with Other Programs: Can be used alongside the Home Buyers’ Plan (HBP) for additional savings strategies.

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Check out the official link from the Government of Canada or speak to your bank for more details.

It’s official! The GST Rebate for First-Time Home Buyers has received Royal Assent, and the CRA is now processing claims that could save you up to $50,000! Canada’s new government has eliminated the GST on new homes up to $1 million and reduced it for homes up to $1.5 million for agreements signed between March 20, 2025, and 2031. To get your rebate as fast as possible, simply log into your MyCRA account to apply online; while we are happy to assist with the paperwork, please note that manual applications will take slightly longer to process. 

Check out our link here and the official site from Government of Canada for more information about this program, including how to apply for the rebate.

The Government of British Columbia has announced changes to the Property Transfer Tax (PTT) to improve housing affordability. The changes, effective April 1, 2024, include raising the exemption threshold for first-time homebuyers from $500,000 to $835,000 and increasing the exemption for newly built homes to $1.1 million.  Click here to read more.

Source: www2.gov.bc.ca

The new B.C. housing law, aimed at increasing housing units on single-family lots, does not override existing restrictive covenants on land titles that limit multi-unit construction. Many properties have old covenants without expiry dates, and homeowners affected are encouraged to seek legal advice.  Click here to read more.

Source: Vancouver Sun

British Columbia has been able to develop one of the best land survey and title registration systems in the world.  

British Columbia, including the colonies before the province came into existence, has always maintained a system for recording ownership and interests in private land.   For a short while, the colonies maintained Deeds Registries.  However, a Deeds Registry results in a complicated, unreliable system for recording interests in land.   In order to gain an opinion on ownership of interests in land, an unbroken chain of documentary evidence over long periods of time or possibly from the original granting of the land from the Crown is required.   If any one of those documents was not properly executed, or if all documents in the chain cannot be obtained, then a shadow of doubt is cast upon the claim of ownership.

This question has been asked numerous times.  And my answer is – it depends on your purpose.
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Most parents, as they get older, would want to add their adult children on title of their home to save on probate fee when they pass.  Yes, although it is true that you can “save” on probate fee, but it can cost you more financially and have significant legal impact down the road.

In many instances, banks and financial institutions require the borrowers to obtain a title insurance.  However, this policy only protects the bank’s interest and insures against financial loss in the event of a defects in title to the property.

In British Columbia, title defects rarely happen.  When a land title is transferred, the new owner can be assured that his/her title is “indefeasible” (meaning the title transfer cannot be defeated, revoked, or made void) under the Torrens system, as long as the owner acquires the interest in good faith and for value consideration.