Blog by Patricia Houlihan - Personal Real Estate Corporation

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First Time Home Buyers' Bonus

Unbelievable but TRUE!!!! Did you know that you could get a cheque for up to $10,000 tax-free dollars if you are buying your first home? That’s a pretty big incentive for those looking to make the big step into homeownership. To find out if you qualify for the government grant, simply click on this link: First Time New Home Buyers’ Bonus.

 

This is a relatively new opportunity. It was just rubberstamped on May 31, 2012, so not too many people know about it yet. Of course there are a few qualifiers to make sure the money ends up in the right hands.

 

You must be a first-time homebuyer (it’s right there in the name) but this counts for international properties as well. Also all parts of the partnership have to be home virgins. And you have to be BC residents within the last year and have the income taxes to prove it.

 

There’s one more caveat. The home you are buying must be new. (Again, it’s right there in the name.) Or at least the place must be relatively new. We’re talking 90% renovated (that’s a substantial amount).

 

When they say, “Up to $10,000.” That always raises a few eyebrows, but here’s how they break it down, it’s 5% of the purchase price, not including HST, up to $10,000, and then there are reductions for those who make over $175,000 combined household.

 

Still, pretty good. And that’s not all! If you are a total market newbie, you probably qualify for the Property Transfer Tax First Time Home Buyers' Program as well. With this deal, first time homebuyers can forget all about paying Property Transfer Tax if their home is less than $425,000. That’s a pretty good deal considering the usual Property Transfer Tax Rates work out like this:

 

1% on the first $200,000

2% on the remainder

 

So, on a $425,000 home, you are looking at $2000 + $4500, for a grand total of $6500 in Property Transfer Tax. If you are a first time homebuyer, you’re exempt!

 

$10,000 in First Time Buyer Bonus plus $6500 in exempted Property Transfer Tax works out to be $16,500 tax-free dollars knocked off the initial investment in a new home. That’s over half of your down-payment, taken care of, thanks to the good ol’ government.

 

So go on. Call the spouse. ….and then call me to help you find the perfect place!

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