First time home buyers
The federal and provincial governments have implemented programs to assist first time home buyers and the following programs are in place.
First Time Home Buyers' Program
This program is to assist people in BC to buy their first home with an exemption from Property Transfer Tax. If you are a first time home buyer, you may be qualified for an exemption from property transfer tax if the purchase price of the property is no more than $425,000. And if the purchase price of the property is between $425,000 and $450,000, you'll get a partial exemption from property transfer tax. To learn more about this program, click here.
First Time Home Buyers' Tax Credit
This is a tax credit for homebuyers who acquire a qualifying home. The First Time Home Buyers' Tax Credit is calculated by multiplying the lowest personal income tax rate for the year by $5,000. This tax credit was $750 ($5,000 x 15%) in 2011. This saving is not as significant as Property Transfer Tax exemption but worth to know about. For more about First Time Home Buyers' Tax Credit, click here.
Home Buyers' Plan
The Home Buyers' Plan is a program that allows first time home buyer to withdraw RRSP funds up to $25,000 (per buyer) from his registered retirement savings plan to buy a home. For couples, the funds can be up to $50,000. To learn more about Home Buyers' Plan, click here.