The government has a number of programs in BC that offer additional funding or cost exemptions to make your home buying process more affordable. Here’s what you need to know:
1. First-Time Home Buyers Program:
Property Transfer Tax Exemption. Eligible first-time homebuyers may qualify for a partial or full exemption from the property transfer tax, saving you thousands of dollars on your home purchase
If you are a first time home buyer that is planning on using the home as your primary residence and purchasing a home for less than $830,000 then you may be eligible for a full exemption.
Here are more details for the Property Transfer Tax exemptions for first time home buyers.
2. RRSP Home Buyer’s Plan (HBP): With the HBP, you can withdraw up to $35,000 from your RRSP tax-free to put towards your down payment, providing a valuable source of funds to help you get into your dream home sooner.
The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $60,000 tax-free in a calendar year from your registered retirement savings plans (RRSPs) to fund your down payment for buying or building a qualifying home for yourself or for a related person with a disability. The money must be in your RRSP for at least 90 days before the purchase of your house for it to be valid.
The Home Buyer’s Plan is advantageous for Canadians because generally speaking, early withdrawals from RRSPs are considered taxable income. In this case, they’re exempt but you must start repaying the amount borrowed from the RRSP five years after you buy over a 15-year period.
Here are more details of the RRSP Home Buyer’s Plan.
3. First Time Home Buyer’s Tax Credit
This credit allows first-time buyers in Canada the opportunity to recover some of the costs associated with their purchase. It helps offset legal fees, inspections, and other similar closing costs.
The First-time Home Buyer’s Tax Credit is a non-refundable credit of $10,000, which equates to a maximum tax rebate of $1500 as of 2023.
Here are more details for the First Time Home Buyer’s Tax credit.
4. GST New Housing Rebate
For newly built homes, first time home buyers are able to apply for a GST credit from the government and/or the developer. The GST in BC is equal to 5%, and as a home buyer you may be eligible for a rebate of 36% of the 5% GST. There is a full general rebate for homes that are under $350,000 that a buyer intends on living is an his/her permanent residence, and there are partial rebates up to $450,000.
Here are more details of the GST New Housing Rebate.
Don’t miss out on these incredible opportunities to turn your dream of owning a home into a reality! Contact us today to learn more about the incentives available in BC and how you can take advantage of them. We are here to help!
Jennifer Heckert & Bronwyn Lawton