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BC First Time Home Buyers’ Program
The real estate market is at its heyday across Canada, and this is just the right time to be a first time homebuyer in British Columbia. If you are planning to buy or build your dream home, you are going to meet your pure luck! The government has introduced First Time Home Buyers’ Program that will offer you a number of resources, grants, and rebates. Yes, but only the first time homebuyers will qualify for the benefits of this program!
Your home sweet home is no more a distant dream now! Purchase or build your house without exceeding your budget in British Columbia. Here’s how-
Home Buyer’s Plan is the biggest opportunity to minimize or remove the amount of property transfer tax for first time homebuyers in BC. Embark on your home buying journey and get prepared for the most precious investment of your life. For owning a home, people sacrifice most of their needs to save up for the deposit! But things are getting easier now as the government has given some great reasons to cheer for the first time home buyers. Unburden yourself from the tensions of paying heavy taxes as the most amazing program has just arrived! Do you qualify? Get to know the facts!
Want to check if you are eligible for the first time homebuyers’program in British Columbia? Find out here-
For a full exemption from the tax:
- You must be a Canadian citizen or permanent resident
- Must have lived in British Columbia for a year immediately before you register the property or filed a minimum of 2 income tax returns as a B.C. resident in the last 6 years
- Must have not lived in a home owned by you anywhere and anytime
- Must have never benefitted from the program earlier
Also, it is important that the property you buy:
- Must be within B.C.
- Should be the primary location that you inhabit
- Should have a market price equal to $425,000 or less (if registered before February 18, 2014), or equal to $475,000 or less (if registered after February 19, 2014)
- Should be equal to 1.24 acres or smaller
Want to file your tax? Get tax filing service now!
Don’t be disheartened, if you do not match the above requirements; you can still enjoy the benefit of partial exemption from the tax if:
- Your property is larger than 1.24 acres
- Your property’s fair market value is less than $450,000 (if registered on or before February 18, 2014), or less than $500,000 (if registered on or after February 19, 2014)
- You have another building on the property other than the home you reside in
Moreover, if you are a first time homebuyer, and are buying a new property, you may qualify for the B.C. First Time New Home Buyers Bonus. If until now, nobody else has claimed a bonus for your eligible new home, you have the privilege of saving potentially up to an extra $10,000.
How to arrange money for a down payment for a new home?
If you qualify for a first time homebuyers program, you can use your Registered Retirement Savings Plan contribution towards a down payment. You can withdraw up to $25,000 from an RRSP account so long as the money was deposited more than 90 days prior, and pay it back within 15 years. If you are a couple planning to buy a house in British Columbia, then this program is even better for you! How? You and your partner can withdraw a total amount of $50,000 combined from your RRSP accounts to make a huge contribution towards a down payment for your home!
Save a huge chunk of money with first time home buyer’s tax credit
If you have not owned a home within the last four years, you may take the benefits of credits and tax breaks and make your first home purchase affordable. Unlike a tax deduction, a tax credit enables you to enjoy a dollar-for-dollar reduction in the taxes you owe to the government.
Buying a home in British Columbia just became cheaper for the first time homebuyers! Whether your property is 100% eligible or 50% eligible for the first time home buyers’ exemption, you can find out the amount of tax payable below:
100% Eligible
| Fair Market Value | Exemption Amount | Tax Payable |
| Less than $475,000.00 | Full amount of tax normally due | $0 |
| $475,000.00 | $7,500.00 | $0.00 |
| $476,000.00 | $7,219.20 | $300.80 |
| $477,000.00 | $6,936.80 | $603.20 |
| $478,000.00 | $6,652.80 | $907.20 |
| $479,000.00 | $6,367.20 | $1,212.80 |
| $480,000.00 | $6,080.00 | $1,520.00 |
| $481,000.00 | $5,791.20 | $1,828.80 |
| $482,000.00 | $5,500.00 | $2,140.00 |
| $483,000.00 | $5,208.80 | $2,451.20 |
| $484,000.00 | $4,915.20 | $2,764.80 |
| $485,000.00 | $4,620.00 | $3,080.00 |
| $486,000.00 | $4,323.20 | $3,396.80 |
| $487,000.00 | $4,024.80 | $3,715.20 |
| $488,000.00 | $3,724.80 | $4,035.20 |
| $489,000.00 | $3,423.20 | $4,356.80 |
| $490,000.00 | $3,120.00 | $4,680.00 |
| $491,000.00 | $2,815.20 | $5,004.80 |
| $492,000.00 | $2,508.80 | $5,331.20 |
| $493,000.00 | $2,200.80 | $5,659.20 |
| $494,000.00 | $1,891.20 | $5,988.80 |
| $495,000.00 | $1,580.00 | $6,320.00 |
| $496,000.00 | $1,267.20 | $6,652.80 |
| $497,000.00 | $952.80 | $6,987.20 |
| $498,000.00 | $636.80 | $7,323.20 |
| $499,000.00 | $319.20 | $7,660.80 |
| $500,000.00 | $0 | $8,000.00 |
50% Eligible
| Fair Market Value | Exemption Amount | Tax Payable |
| $475,000.00 | $3,750.00 | $3,750.00 |
| $476,000.00 | $3,609.60 | $3,910.40 |
| $477,000.00 | $3,468.40 | $4,071.60 |
| $478,000.00 | $3,326.40 | $4,233.60 |
| $479,000.00 | $3,183.60 | $4.396.40 |
| $480,000.00 | $3,040.00 | $4,560.00 |
| $481,000.00 | $2,895.60 | $4,724.40 |
| $482,000.00 | $2,750.40 | $4,889.60 |
| $483,000.00 | $2,604.40 | $5,055.60 |
| $484,000.00 | $2,457.60 | $5,222.40 |
| $485,000.00 | $2,310.00 | $5,390.00 |
| $486,000.00 | $2,161.60 | $5,558.40 |
| $487,000.00 | $2,012.40 | $5,727.60 |
| $488,000.00 | $1,862.40 | $5,897.60 |
| $489,000.00 | $1,711.60 | $6,068.40 |
| $490,000.00 | $1,560.00 | $6,240.00 |
| $491,000.00 | $1,407.60 | $6,412.40 |
| $492,000.00 | $1,254.40 | $6,585.60 |
| $493,000.00 | $1,100.40 | $6,759.60 |
| $494,000.00 | $945.60 | $6,934.40 |
| $495,000.00 | $790.00 | $7,110.00 |
| $496,000.00 | $633.60 | $7,286.40 |
| $497,000.00 | $476.40 | $7,463.60 |
| $498,000.00 | $318.40 | $7,641.60 |
| $499,000.00 | $159.60 | $7,820.40 |
| $500,000.00 | $0 | $8,000.00 |
Table from BC Government – First Time Home Buyers’ Exemption Amounts
Want to apply for the First Time Home Buyers’ Program? Simply fill in the First Time Home Buyers’ Property Transfer Tax Return at the time of registering your property.
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