10 Government Plans that Save You Money When Buying a Home
KellyHudsonMortgages • May 4, 2017
Spring is a busy, busy time in the BC Real Estate market. This BLOG is to let potential home buyers know that both the federal and the BC provincial government offer resources, grants and rebates for new and current home owners.
There are several savings programs available. You need to be aware of all the government programs available to you when making financial decisions.
I’ve included a Top 10 list of these programs… there are others available.
- L ast day to apply March 31, 2018 – Home Owner Mortgage and Equity (HOME) Partnership program: Assists eligible first-time homebuyers by providing repayable down payment assistance loans. It contributes to your personal down payment, up to a maximum of 5% of the purchase price. The loan is interest-free and payment-free for the first five years.
- Property Transfer Tax (PTT) First-Time Home Buyers Program : Qualifying first-time home buyers may be exempt from paying the PTT – 1% on the first $200,000 and 2% on the remainder of the purchase price of a resale home priced up to a maximum of $525,000.
- Home Buyers Plan (HBP) : Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs to assist with the purchase of a home. The funds are not required to be used only for the down payment, but for other purposes to assist in the purchase of a home.
- First-Time Home Buyers Tax Credit (HBTC) : Eligible individuals who bought a qualifying home in 2017 can claim the home buyers amount of $5,000 when filing their 2017 income tax return. The maximum tax credit is $750.
- Seniors Home Renovation Tax Credit : Assists eligible seniors 65+ with the cost of some permanent home renovations to a principal residence to improve accessibility. The maximum refundable credit is $1,000 per tax year.
- CMHC Mortgage Loan Insurance Premium Refund : Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient home or make energy saving renovations.
- Property Transfer Tax Newly Built Home Exemption : Qualifying buyers of new homes may be exempt from paying the Property Transfer Tax on a newly built home or newly subdivided unit priced up to a maximum of $750,000.
- Home Adaptations for Independence (HAFI): A program jointly sponsored by the provincial and federal governments provides up to $20,000 to help eligible low income seniors and disabled home owners and landlords finance modifications to their homes to make them accessible and safer.
- Home Owner Grant: Reduces property taxes for home owners with an assessed value up to $1,650,000 (in 2018). The basic grant is $570 in BC plus and additional grant of $200 to rural home owners. There is also an additional grant of $275 for seniors aged 65+ and veterans of certain wars.
- Property Tax Deferment Programs : Qualifying home owners aged 55+ can defer property taxes. Qualifying low-income home owners can defer property taxes and qualifying home owners who financially support children under the age of 18 can defer property taxes.
Are you looking at buying a home? As you can tell there is lots to discuss including government programs, give me a call and let’s have a chat!
Kelly Hudson
Mortgage Expert
Mobile: 604-312-5009
Kelly@KellyHudsonMortgages.com
www.KellyHudsonMortgages.com
Kelly Hudson
MORTGAGE ARCHITECTS
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