The BC Provincial Government as well as the Federal Government have a variety of programs to help home buyers with their purchase. Some of these programs can significantly reduce the cost of purchasing your property. Let’s take a look at a few of these programs.
Eliminates or reduces the amount of Property Transfer Tax (PTT) that a purchaser has to pay. To be eligible you must have lived in BC for at least a year or filed at least 2 income tax returns as a BC resident. You must be a first time home buyer. Eligible properties are $500,000 or less (a partial exemption exists for homes up to $525,000) and must be a principal residence. For more information visit: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers
Reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home. Qualifying homes must be $750,000 or less and under 0.5 hectares. For more information visit: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/newly-built-home-exemption
Reduces the amount of of GST a purchaser pays on a newly built or substantially renovated home. The full rebate applies for homes up to $350,000 and a partial rebate for homes up to $450,000. For more information visit: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4028/gst-hst-new-housing-rebate.html
Allows first time home buyers to withdraw up to $35,000 out of their RRSP to put towards a home purchase. You must intend to live in the home and it must be repaid within the 15 year period. For more information visit: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html
Is a shared equity mortgage that helps to lower the monthly cost of borrowing. It must be repaid either within 25 years or when the hold is sold, whichever comes first. The repayment is based on the home’s current value. If 5% is borrowed then 5% of the sale price is due, essentially. For more information visit: https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive
Qualifying home buyers can claim up to $5,000 on their income tax as a Home Buyer Tax Credit. For more information visit: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31270-home-buyers-amount.html
Qualifying energy-efficient homes can get up to a 25% refund on the CMHC premium. For more information visit: https://www.cmhc-schl.gc.ca/en/professionals/industry-innovation-and-leadership/industry-expertise/resources-for-mortgage-professionals/energy-efficient-housing-made-more-affordable-with-mortgage-loan-insurance
