Over the next couple of blogs, we'll be providing a list of grants and rebates for property buyers and owners to make the purchasing process a little more affordable. Follow along to see how you can keep your wallet feeling a little fuller!
(1) Home Buyers' Plan
Qualifying home buyers can withdraw up to $25,000 (or $50,000 for couples) from their Registered Retirement Savings Plans (RRSP) for a down payment. It allows you to buy or build a qualifying home for yourself or a related person with a disability. Home buyers who have repaid their RRSP may be eligible to use the program a second time.
Additional Information: CRA Home Buyers' Plan
(2) GST Rebate on New Homes
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 paid to a maximum rebate of $6,300. For homes between $350,000 and $450,000, there is a proportional GST rebate available.
Additional Information: CRA GST Rebate
(3) BC Property Transfer Tax (PTT) First Time Home Buyers' Program
For properties purchased in BC, the government has levied a tax payable called the Property Transfer Tax (PTT). The tax is 1% on the first $200,000 of the property value and 2% on the remaining balance. However, first-time home buyers may be qualified for $7,500 in tax savings on the purchase of a home up to $475,000 (Effective as of February 19,2014).
Additional Information: BC Property Transfer Tax Program
(4) First-Time Home Buyers' Tax Credit (HBTC)
This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. To calculate the tax credit, you will multiply the lowest personal income tax rate for the year (15% in 2012) x $5,000. The maximum credit is $750 in 2013.
Additional Information: Home Buyers' Tax Credit
(5) BC Home Owner Grant
This grant reduces property taxes for home owners with an assessed value of up to $1.1M. You (or your spouse) can only claim the home owner grant for your principal residence each year. The grant is available to qualified residents that pay property taxes to a municipality or the province in a rural area.
With this grant, home owners are able to receive:
- A maximum reduction of $570 in property taxes on principal residences in the Capital, Greater Vancouver and Fraser Valley regional districts;
- An additional grant of $200 to rural homeowners elsewhere in the province; &
- An additional grant of $275 to seniors aged 65+, those who are permanently disabled and war veterans of certain wars.
Additional Information: BC Home Owner Grant
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