Buying your first home can be one of the most exciting milestones of your life, but it can also be one of the most financially difficult purchases you make. Fortunately, there are a number of programs in British Columbia to help first-time home buyers reduce costs and make home ownership more accessible.
Whilst not all programs will be applicable to your situation, read below for some of the programs available for first-time home buyers in BC.
First-Time Home Buyers’ Tax Credit
The First-Time Home Buyers’ Tax Credit (HBTC) enables first-time home buyers in Canada to claim a non-refundable tax credit of up to $10,000 resulting in a potential tax reduction of up to $1,500. To claim this tax credit, you simply need to enter the Home Buyer’s Amount of $10,000 on Line 31270 of your income tax return. You can learn more about eligibility here.
First Home Savings Account
The First Home Savings Account (FHSA) allows Canadians who are 18 and older to contribute up to $40,000 into the account over their lifetime, tax-free. Annual contributions are capped at $8,000, with a maximum of $8,000 unused contribution room that can be carried forward to the following year. The account can stay open for a maximum of 15 years, or until the end of the year in which you turn 71. You can learn more about the FHSA here.
Home Buyers’ Plan
The Home Buyers’ Plan (HBP) is a federal program in Canada that allows first-time home buyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to purchase or build a home. You can use up to $60,000 of your RRSP contributions ($120,000 for couples) toward the down payment on a home. The withdrawn money will need to be paid back over 15 years into an RRSP account. You can learn more about the HBP here.
BC Homeowner Grant
The BC Homeowner Grant reduces the amount of property tax you pay for your principal residence. The basic grant is up to $770, whilst seniors, veterans, and persons with disabilities may qualify for up to $1,045. The grant applies to homes with an assessed value of $2,175,000 or less. You can learn more about the grant here.
BC Newly Built Home Exemption
When purchasing a home in BC, buyers are subject to payment of a Provincial Property Transfer Tax (PTT). The amount you pay is based on the fair market value of the property. Learn more here. However, there is a PTT exemption for newly built homes with a fair market value of up to $1,100,000, and partial exemptions for properties with a fair market value of up to $1,150,000. You can learn more about the exemption here.
If you are considering buying your first home, one of our expert VIRANI advisors would be happy to guide you through the process. Give us a call at 604.695.1000 to get started on your home ownership journey today!
First-Time Homebuyer Programs in British Columbia – Your Path to Home Ownership
Buying your first home can be one of the most exciting milestones of your life, but it can also be one of the most financially difficult purchases you make. Fortunately, there are a number of programs in British Columbia to help first-time home buyers reduce costs and make home ownership more accessible.
Whilst not all programs will be applicable to your situation, read below for some of the programs available for first-time home buyers in BC.
First-Time Home Buyers’ Tax Credit
The First-Time Home Buyers’ Tax Credit (HBTC) enables first-time home buyers in Canada to claim a non-refundable tax credit of up to $10,000 resulting in a potential tax reduction of up to $1,500. To claim this tax credit, you simply need to enter the Home Buyer’s Amount of $10,000 on Line 31270 of your income tax return. You can learn more about eligibility here.
First Home Savings Account
The First Home Savings Account (FHSA) allows Canadians who are 18 and older to contribute up to $40,000 into the account over their lifetime, tax-free. Annual contributions are capped at $8,000, with a maximum of $8,000 unused contribution room that can be carried forward to the following year. The account can stay open for a maximum of 15 years, or until the end of the year in which you turn 71. You can learn more about the FHSA here.
Home Buyers’ Plan
The Home Buyers’ Plan (HBP) is a federal program in Canada that allows first-time home buyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to purchase or build a home. You can use up to $60,000 of your RRSP contributions ($120,000 for couples) toward the down payment on a home. The withdrawn money will need to be paid back over 15 years into an RRSP account. You can learn more about the HBP here.
BC Homeowner Grant
The BC Homeowner Grant reduces the amount of property tax you pay for your principal residence. The basic grant is up to $770, whilst seniors, veterans, and persons with disabilities may qualify for up to $1,045. The grant applies to homes with an assessed value of $2,175,000 or less. You can learn more about the grant here.
BC Newly Built Home Exemption
When purchasing a home in BC, buyers are subject to payment of a Provincial Property Transfer Tax (PTT). The amount you pay is based on the fair market value of the property. Learn more here. However, there is a PTT exemption for newly built homes with a fair market value of up to $1,100,000, and partial exemptions for properties with a fair market value of up to $1,150,000. You can learn more about the exemption here.
If you are considering buying your first home, one of our expert VIRANI advisors would be happy to guide you through the process. Give us a call at 604.695.1000 to get started on your home ownership journey today!