1. Home Buyers’ Plan
Qualifying home buyers can withdraw up to $35,000 (couples up to $70,000) from their RRSPs for a down payment. Must repay within 15 years. Eligibility to use the program a second time: home buyers who’ve experienced a breakdown in their marriage/common-law partnership and those who have repaid their RRSP. Can be used together with the First Home Savings Account program. Canada Revenue Agency.
2. First Home Savings Account
Qualifying first-time buyers can contribute up to $8,000 yearly to a maximum of $40,000 towards a downpayment. Contributions are tax deductible; capital gains (earnings) and interest are tax-free. Can be used together with the Home Buyers’ Plan.
3. CMHC First-time Home Buyers’ Incentive
Qualifying first-time home buyers with annual household incomes less than $120,000 and a 5% down payment, a 10% shared equity mortgage for a newly constructed home OR a 5% shared equity mortgage for an existing home. Buyer repays the incentive later or at re-sale. Incentive reduces the amount of monthly mortgage payments.
4. BC Property Transfer Tax (PTT) First-Time Home Buyers’ Program
Effective April 1, 2024 Qualifying first-time buyers may be exempt from paying the PTT (1% on the first $200,000 and 2% on the remainder of the purchase price of a resale home priced up to $835,000. Foreign entities, taxable trustee ineligible.
5. BC PTT Newly Built Home Exemption
Qualifying buyers of new homes may be exempt from paying the PTT on a newly built home or newly subdivided unit priced up to $850,000 and a partial exemption on newly built homes priced $1,1000,000.
6. First-Time Home Buyers’ Tax Credit
Eligible persons who bought a qualifying home can claim the home buyers’ amount of $10,000 on Line 31270 of Schedule 1 when filing their 2022 income tax and benefit returns.
7. GST/HST New Housing Rebate
New home buyers can apply for a rebate for the 5% GST if the purchase price is $350,000 or less. The rebate is equal to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000. There is no rebate for homes priced at $450,000+.
8. BC Home Owner Grant
Reduces property taxes for home owners with an assessed or partitioned value up to $2.125 million. Grant reduced by $5 for each $1,000 above the threshold. The home owner grant threshold applies across the province. The amounts are:
- $570 for the basic grant;
- $770 if the home is located in a northern or rural area;
- Up to $845 for home owners age 65 and more or a home owner with a disability; and
- Up to $1,045 for home owners age 65 and more or a home owner with a disability where the home is in a northern or rural area.
9. BC Property Tax Deferment Programs
- Property Tax Deferment Program for Seniors: qualifying home owners aged 55+ can defer property taxes.
- Financial Hardship Property Tax Deferment Program: qualifying low-income home owners can defer property taxes.
- Property Tax Deferment Program for Families with Children: qualifying home owners who financially support children under age 18 can defer property taxes.
** Strictly taken from the website of Real Estate Board of Greater Vancouver
A Canadian Certified Immigration Consultant, Certified Senior Advisor and a Notary Public in the City of Burnaby, Editha Corrales Nelson’s preferred areas of practice are Powers of Attorney, Wills Preparation, International Legal Documents, Name Changes, Affidavits, Letters of Invitation, Statutory Declarations, Drafting of Business Contracts and other notarial services. For an appointment, please call: 604-777-2757.
The following should not be construed as providing legal advice and information in this column is intended only as a general guide and should not be applied to specific circumstances without further consultation. For more information on the subject, contact Editha Corrales Nelson at 604-777-2757 or email: corrales@shaw.
