First Time Home Buyers Savings
To Qualify for the PTT Exemption a First Time Home Buyer must:
- Be a Canadian Citizen or Permanent Resident
- Have lived in BC for 12 consecutive months OR filed income tax returns for at least 2 of the last 6 years in BC
- Never have owed an interest in a principal residence anywhere in the world; and
- Never have previously received a First Time Home Buyers Exemption
- 1.24 acres or smaller
- You must move in within 92 days
- You must stay for a year
If you qualify, on homes valued up to $475,000, a First Time Home Buyer will be exempt from paying Property Transfer Tax (a savings of $7,500 in PTT). The tax exemption diminishes on higher priced homes and is not available on any homes priced over $500,000.
This program allows First Time Home Buyers to “loan themselves” previously claimed RRSP contributions tax free to assist in the purchase of a home.
To Qualify for the RRSP First Time Home Buyers Plan:
- You must have entered into a binding agreement to build or buy a home
- You intend to occupy your home as a principal residence and be a resident of Canada
- You are a first time home buyer
- You must not have a “repayable Home Buyers Plan” balance on your tax return
- You must repay the loan over the next 15 years
- This program will allow you to withdraw up to $25,000 from your RRSP to assist in your home purchase. This is withdrawn at your financial institution immediately prior to closing and you complete form T1036.
C. Homeowner's Tax Credit
- Buy after January 27, 2009
- Must be principle Residence
- Approx. $750 personal Income Tax Credit
- Cannot have owned for 4 years prior to completion
- Simply fill in Line 369 on a personal Tax return
CENTURY 21 Executives Realty Ltd.