Ways to save money as a Vancouver homebuyer or homeowner
Whether you are a first time homebuyer, a homeowner looking to upsize/downsize, or you've decided to stay in your current home it's important to know about saving programs available to you.
Homebuyer's
First time Home Buyer's Property Transfer Tax Exemption
People buying a home in Vancouver or anywhere in BC are responsible for paying a property transfer tax (PTT). The amount is 1 percent on the first $200K, and 2 percent on the balance of the purchase price. This is by far the biggest expense typically in any re-sale home purchase.
First time buyers however may be eligible to qualify to buy tax free. Eligibility requirements include having never been "on title" or owning a previous home anywhere in the world, a maximum price of $425,000 for the full exemption, and the down payment cannot exceed 3 percent.
To learn more visit http://www.sbr.gov.bc.ca/individuals/property_taxes/property_transfer_tax/first_time_home_buyer.htm
Homeowners correcting a conveyancing error no longer pay the PTT on land transfers. Transfers required to amend a strata plan are exempt, except where owners receive an increased interest. Then the PTT becomes payable on the interest.
First Time Buyer's Tax Credit
Qualifying home buyer's can claim up to $750 under this federal program
Home Buyer's Plan
RRSP's
Qualifying home buyers can withdraw up to $25,000 for their down payment from their RRSP's under this federal government program. Couples can withdraw $50,000.
Buying a NEW home
If a homebuyer purchased a NEW home before July 1, 2010:
- They can apply for a rebate of 5 percent GST applicable to the purchase price of $8750 for homes costing up to $350,000
- There is a proportional GST rebate for new homes costing between $350,000 and $450,000
- Newly constructed homes or substantially renovated homes completed by July 1, 2010 have the PST embedded in the cost of construction. Home buyers may qualify for a PST transitional rebate for specific types of non-grand parented residential properties.
Property tax help
BC Home Owner Grant
Home owners in BC can reduce property taxes up to $570 for homes assessed up to $950,000 under this provincial program. The grant is reduced on a sliding scale for homes assessed up to $1,064,000.
Seniors, veterans and disabled home owners can claim an additional $275 to a maximum of $845 for homes up to $950,000. The grant is reduced on a sliding scale for homes assessed up to $1,064,000.
Land Tax Deferment
Home owners with children under the age of 18 may be eligible to defer their property taxes if they have at least 15 percent equity in their home. Deferred taxes are charged interest at the prime rate and are repayable when the home has sold.
Seniors and owners facing financial hardship may also be eligible to defer property taxes. Deferred taxes are charged interest at the prime rate and are repayable when the home has sold.
