A Few Ways To Save Money When Buying a Home

(February 11, 2017 )

BC Home Owners Grant
Reduction of property taxes on homes assessed up to $1,200,000. This includes up to $570 on property taxes for home owners' principal residence within the Capital, Greater Vancouver and Fraser Valley regional districts. Additionally, $200 granted to those with rural homes across the province. (Learn more at www2.gov.bc.ca)

First Time Home Buyer's Tax Credit (HBTC)
Federal non-refundable income tax credit for qualifying buyers of mobile homes, condos, detached and attached homes or shares in CO-OP housing corporation. To calculate, multiply the lowest personal income tax rate for the year by $5,000. For example for 2014, (15%) x ($5000). For 2015, the maximum tax credit was $750. (Learn more at www.cra-arc.gc.ca or call 1-800-959-8281)

GST Rebates on new homes
New home purchases $350,000 or less are eligable for GST rebate up to 36% of that 5% GST for a maximum rebate for $6,300. Homes costing between $350,000 and $450,000 can apply for a proportional rebate as well, however homes $450,000 and over will not be eligable for a GST rebate.

Home Buyer's Plan
Qualifying home buyers can withdraw up to $25,000 from their RRSP's for a down payment (Couples up to $50,000) and if they pay their RRSP's back, they may be eligable a second time.

BC Property Transfer Tax (PTT) First Time Buyer's Program
On homes purchased for $475,000 or less, qualifying home buyers can be exempt from paying PTT of 1% of the first $200,000 and 2% on the balance. For homes purchased between $475,000 and $500,000 there may be a proportional exemption. Finally, for houses purchased for over $500,000 will not be eligable for this rebate.

BC tax deferment programs
Financial Hardship Property Tax Deferment Program - available for qualifying low income home owners to defer property taxes.
Property Tax Deferment Program for Families with Children - available for qualifying home owners financially supporting children under the age of 18 to defer property taxes.