First Time Home Buyers Savings

A. Property Transfer Tax Exemption for First Time Home Buyers

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.

 

B. RRSP First Time Home Buyers Plan

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 This is withdrawn at your financial institution immediately prior to closing and you complete form T1036.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

 

Russell Armstrong

Russell Armstrong

REALTOR®
CENTURY 21 Executives Realty Ltd.
Contact Me

Blog

Bank of Canada holds rates steady as signs of recovery emerge
Okanagan Real Estate Market -higher prices predicted
Bank rate cut/Loonie dips
Read More