First-Time Home Buyer in Surrey, BC? 9 Tax Mistakes That Could Cost You Thousands in 2026
Buying your first home in Surrey, BC is exciting—but it can also come with a long list of financial decisions, paperwork, and tax considerations.
Between the purchase price, closing costs, mortgage, property taxes, and other expenses, it is easy to overlook tax benefits that could potentially save you thousands of dollars.
In 2026, first-time home buyers have several important programs and tax considerations to understand, including the First-Time Home Buyers’ GST/HST Rebate, First Home Savings Account (FHSA), Home Buyers’ Plan (HBP), and BC’s property transfer tax rules.
Here are nine common tax mistakes Surrey first-time home buyers should avoid.
Important: Tax rules and eligibility requirements can change. The information below is general educational information and should not be considered personalized tax advice. Speak with our CPA or any tax professional about your specific situation.
1. Assuming You Don't Qualify as a First-Time Home Buyer
One of the biggest mistakes is assuming that owning a home in the past automatically means you can never qualify as a first-time home buyer again.
For the federal First-Time Home Buyers’ GST/HST Rebate, eligibility generally considers whether you or your spouse or common-law partner lived in a home you owned during the year of purchase or the previous four calendar years.
That means your circumstances—and the timing of your previous home ownership—can matter.
For example, someone who previously owned a home but has been renting for several years may need to look carefully at the specific eligibility rules before assuming they don't qualify.
Don't make assumptions. Check the rules for the specific program you're applying for.
2. Missing the New First-Time Home Buyers’ GST/HST Rebate
This is one of the most important 2026 changes for eligible first-time buyers purchasing a qualifying new or substantially renovated home.
The federal First-Time Home Buyers’ GST/HST Rebate can provide eligible buyers with up to $50,000 of GST relief.
For qualifying new homes valued at or below $1 million, the rebate can cover up to 100% of the GST. For homes valued between $1 million and $1.5 million, the rebate is gradually reduced. Homes valued at $1.5 million or more aren't eligible for this particular rebate. CCanada+1
The rules are detailed, and not every home purchase qualifies.
If you're buying a new condo, townhouse, or other newly constructed property in Surrey, don't simply assume the GST rebate is already being handled correctly.
Ask your builder, lawyer, and CPA how the rebate applies to your transaction.
3. Forgetting About the FHSA
The First Home Savings Account (FHSA) can be a valuable tool for Canadians saving for their first home.
Eligible individuals can generally contribute up to $8,000 per year, with a lifetime contribution limit of $40,000.
One important benefit is that qualifying FHSA contributions can provide a tax deduction, while qualifying withdrawals used to purchase a first home can be tax-free.
If you're planning to buy a home in Surrey and haven't looked into an FHSA, it's worth understanding how the account works before making your purchase.
The earlier you plan, the more opportunities you may have to use available contribution room.
4. Not Understanding the RRSP Home Buyers' Plan
Another program first-time buyers should know about is the Home Buyers' Plan (HBP).
The HBP allows eligible individuals to withdraw up to $60,000 from an RRSP to buy or build a qualifying home. CCanada
And in certain circumstances, you can use both an FHSA qualifying withdrawal and an RRSP HBP withdrawal for the same home.
However, an RRSP withdrawal under the HBP isn't simply free money. There are repayment requirements.
For first HBP withdrawals made between January 1, 2026 and December 31, 2028, the temporary repayment relief means the repayment period begins in the fifth year following the year of the withdrawal. For example, a first withdrawal in 2026 would have a first repayment year of 2031. CCanada
Understanding these rules before withdrawing money can help you avoid an unexpected tax or repayment issue later.
5. Assuming Every Home Purchase Gets the Same Tax Benefits
A newly built Surrey condo and a resale Surrey townhouse can have very different tax considerations.
For example, the federal first-time home buyers’ GST/HST rebate applies to qualifying newly constructed or substantially renovated homes, not simply every property purchased by a first-time buyer. CCanada
This distinction is particularly important when you're comparing:
New construction
Pre-construction condos
Resale homes
Substantially renovated properties
Owner-built homes
Before signing a purchase agreement, understand which tax programs may apply to the type of property you're buying.
6. Overlooking BC Property Transfer Tax Rules
Federal tax programs aren't the only consideration for a Surrey home purchase.
BC has its own Property Transfer Tax (PTT) rules, including a first-time home buyer exemption for qualifying purchasers who meet the applicable requirements. BB.C. Laws
The exemption isn't automatic simply because you're buying your first home.
There are eligibility conditions and filing requirements to consider.
Your lawyer or notary typically handles the property transfer process, but it's still important to understand whether you may qualify before closing.
7. Waiting Until Tax Season to Think About the Tax Implications
A common mistake is waiting until you file your tax return to ask questions about home-buying tax benefits.
By then, some planning opportunities may already have passed.
Ideally, tax planning should start before you buy, particularly if you're deciding:
How much to contribute to an FHSA
Whether to use the RRSP Home Buyers' Plan
Whether you're purchasing a new or resale property
Whether you may qualify for a first-time buyer program
How ownership will be structured between spouses or partners
A conversation with a CPA before closing can help you understand the tax implications before you commit to a transaction.
8. Not Keeping Your Documents
Home buyers can accumulate a surprising amount of paperwork.
Don't throw away documents simply because the purchase has closed.
Depending on your circumstances and the tax program involved, you may need records such as:
Purchase and sale agreements
Closing documents
GST documentation
Legal documents
FHSA records
RRSP withdrawal information
Receipts and invoices
Proof of occupancy
For the federal first-time home buyers’ GST/HST rebate, the CRA says applicants should keep relevant records for six years, including the rebate application, supporting documents, purchase and sale agreement, and proof of occupancy. CCanada
Keeping organized records can make future tax filings and CRA questions much easier to handle.
9. Trying to Navigate Everything Without Professional Advice
Buying your first home is one of the biggest financial transactions many people will make.
Tax rules can become particularly complicated when you combine:
A new construction purchase
Multiple buyers
Spousal or common-law ownership
FHSA contributions
RRSP withdrawals
GST rebates
Property transfer tax
Rental or home-office considerations
A small mistake can potentially result in a missed tax benefit, an incorrect claim, or an unexpected tax bill. We can review your circumstances before or during the home-buying process and help you understand which tax rules may apply to you.
Buying your first home in Surrey doesn't have to mean navigating the tax system alone.
The key is to plan before you close, rather than discovering potential tax benefits—or mistakes—when you file your return.
Contact Bouchard & Co. at 604-591-3193 today and let our team help you make informed tax decisions with confidence.
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