FIRST TIME HOME BUYER PROGRAMS:
Property Transfer Tax (PPT)– The British Columbia Provincial Government imposes a property transfer tax which must be paid before any home can be legally transferred to a new owner. The current Property Transfer Tax rate is 1% on the first $200 000 and 2% on the remainder.
If you are purchasing your first home, you may qualify for an exemption from property transfer tax
if certain requirements are met.
WHAT ARE THE REQUIREMENTS?
Purchaser
You qualify for the exemption if:
ƒ- you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada,
ƒ- you have lived in British Columbia for 12 consecutive months immediately before the date
you register the property, or you have filed 2 income tax returns as a British Columbia
resident during the 6 years before the date you register the property,
ƒ- you have never owned an interest in a principal residence anywhere in the world at anytime,
and
ƒ- you have never received a first time home buyers’ exemption or refund.
Property
The property you purchase qualifies if:
ƒ-the fair market value of the property is not more than the current threshold of $425,000, (A proportional exemption is provided for eligible residences with a fair market value of up to $25,000 above the threshold)
ƒ- the land is 0.5 hectares (1.24 acres) or smaller, and
ƒ- the property will only be used as your principal residence.
If the property does not meet all of these requirements, you may still qualify for a partial
exemption.
For additional information, please visit:
http://www.sbr.gov.bc.ca/business/property_taxes/property_transfer_tax/first_Time_home_buyer.htm
Home Buyers' Plan (HBP)
The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.
Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year.
Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year.
For additional information, please visit:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/hbp-rap/menu-eng.html
First-time Home Buyers Tax Credit (HBTC)
This is a non-refundable income tax credit for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation.
It’s calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the maximum credit was $750.
For additional information, please visit:
Canada Revenue Agency
www.cra.gc.ca/hbtc
First Time Home Buyer Progams:
Property Transfer Tax (PPT)– The British Columbia Provincial Government imposes a property transfer tax which must be paid before any home can be legally transferred to a new owner. The current Property Transfer Tax rate is 1% on the first $200 000 and 2% on the remainder.If you are purchasing your first home, you may qualify for an exemption from property transfer tax if certain requirements are met.
WHAT ARE THE REQUIREMENTS? Purchaser You qualify for the exemption if: ƒ- you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada, ƒ- you have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property, ƒ- you have never owned an interest in a principal residence anywhere in the world at anytime, and ƒ- you have never received a first time home buyers’ exemption or refund. PropertyThe property you purchase qualifies if: ƒ-the fair market value of the property is not more than the current threshold of $425,000, (A proportional exemption is provided for eligible residences with a fair market value of up to $25,000 above the threshold)ƒ- the land is 0.5 hectares (1.24 acres) or smaller, and ƒ- the property will only be used as your principal residence. If the property does not meet all of these requirements, you may still qualify for a partial exemption.
For additional information, please visit: BC GOV for more information.
Home Buyers' Plan (HBP)- The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year.Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year.For additional information, please visit: BC GOV for more information.
First-time Home Buyer's Tax Credit (HBTC)- This is a non-refundable income tax credit for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. It’s calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the maximum credit was $750.
For additional information, please visit: Canada Revenue Agency for more information.
