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Buying your first home in Langley or Surrey? Check out these first time buyer tax incentives

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Blog by Liz Penner | October 29th, 2015

thumbThere are many great programs out there for first time home buyers. Below is a list of some of the tax savings and incentives for first time home buyers

Home Buyers’ Plan: Registered Retirement Savings for down payments

Canada Revenue Agency’s Home Buyers' Plan lets qualifying home buyers use up to $25,000 of their Registered Retirement Savings Plan (RRSP) to buy a home. Couples can use up to $50,000. The home must be the principal residence, the home buyers must not have owned a home within the past five years and the loan must be repaid with 15 years.

Disabled home buyers upgrading to a more accessible home also qualify as do relatives helping   disabled home buyers. Home buyers who have already used the plan and have fully repaid their RRSP may be eligible to use the plan a second time.

Canada Revenue Agency For information: Home Buyers' Plan 1-800-959-8287


First-Time Home Buyers' Tax Credit

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.

It’s calculated by multiplying the lowest personal income tax rate for the year by $5,000.

Canada Revenue Agency For information: www.cra.gc.ca/hbtc  1-800-959-8281

GST Rebate on new homes

New home buyers can   apply for a rebate of the 5% GST if the purchase price is $350,000 or less. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000.

Canada Revenue Agency For information: GST-New   housing rebate 1-800-959-8287

BC Property Transfer Tax (PTT)

Home buyers in BC pay a provincial Property Transfer Tax (PPT) when they buy a home. The tax is charged at a rate of 1% on the first $200,000 of the purchase price and 2% on the remainder.

First-time home buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $475,000. There is a proportional exemption for between $475,000 and $500,000. At $500,000 and above the rebate is nil.

BC Ministry of Finance For information: Property   Transfer Tax 250-387-0604

BC property tax   deferment programs

Seniors Qualifying home owners aged 55+ may be eligible to defer property taxes.

Financial hardship Qualifying home owners may be eligible to defer property taxes.

Families with   children Qualifying home owners who financially support children under age 18 may be eligible to defer property taxes.

BC Ministry of Finance For information: Property tax deferment programs and enter ‘Property tax deferment’   in the search box or contact your   municipal tax office.

BC Home Owner Grant

Reduces property taxes for home owners with an assessed value of up to $1,100,000. The basic grant gives home owners:

• 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 verterans of certain wars

BC Ministry of Finance For information:  Home Owner   Grant Or contact your local municiple tax    office.

Information Courtesy of the Vancouver Real Estate Board


Go to LizPenner.com to get your home search started. Call Liz Penner at 604-376-3350