Government incentives for first time buyers & more and
Government incentives for buyers who haven’t owned in at least 4 years
ZERO PTT for all buyers, first time or not!
Property Transfer Tax. (PTT) This tax is a provincial sales tax on real estate, and is zero for Canadian Citizens or permanent residents who will be using
their new purchase as their primary residence. The price limit is $750,000 for this exemption and it is only available for NEW condos or residences. (Used properties still have to pay PTT) This measure was introduced in the BC provincial budget of February 16, 2016.
Using RRSPs
Any first time buyer or people who haven’t owned property in the past 4 years can borrow up to $25,000 tax free from their RRSP. If two people are buying and one has owned in the past 4 years and the other hasn’t, then the one that hasn’t owned can still use their RRSP funds to buy. These funds must be repaid to your RRSP within 15 years. See your lender for details.
$750 TAX CREDIT
First Time Home Buyers Tax Credit (HBTC). This is a tax credit (cash!) of $750 for both first time buyers and buyers who have not owned in the past 4 years. With HBTC if two people are buying, neither may have owned in the past 4 years. To get this tax credit you must be earning enough income to be paying federal income tax.
(To get this $750 credit, at tax time enter $5,000 on line 369 of Schedule 1 of your personal tax return. The claim can be split between you and your spouse or common-law partner.)
