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. This program is for all buyers, first time or not.
For First Time Buyers (or People who haven’t owned property in the past 4 years):
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.
First Time Buyers:
INTEREST FREE AND PAYMENT FREE LOANS FOR THE FIRST 5 YEARS
B.C. Home Owner Mortgage and Equity (Home) Partnership. This program will meet the buyer’s contribution up to 5% of the home’s purchase price, to a maximum purchase price of $750,000. After five years, buyers can either repay their loan or enter into monthly payments at current interest rates. Loans through the program become due after 25 years – the same length as most mortgages. This is a way to have a lower monthly payment plus save money for the first 5 years.
First Time Buyers (or People who haven’t owned property in the last 4 years):
$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.)