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2024 Update: Discover British Columbia’s First Time Home Buyer Programs!

2024 Update: British Columbia’s First-Time Home Buyer Programs

Understanding First-Time Home Buyer Programs in BC

Are you embarking on the exciting journey of becoming a first-time homeowner in British Columbia? Understanding the array of first-time home buyer programs available can significantly impact your home buying experience, making it more affordable and accessible.

The BC government offers several programs aimed at providing additional funding or exemptions to ease the financial burden of purchasing your first home. While not every program may suit your needs, being well-informed about these options can potentially save you money along the way.

RRSP Home Buyer’s Plan

The Home Buyers’ Plan (HBP) allows you to withdraw up to $35,000 tax-free from your registered retirement savings plans (RRSPs) in a calendar year. This money can be used for the down payment on a qualifying home for yourself or a related person with a disability. It’s crucial to note that the funds must be in your RRSP for at least 90 days before the purchase of your house to be valid.

First Time Home Buyers Program: Property Transfer Tax Exemption

Under this program, eligible first-time home buyers may receive a full exemption from the property transfer tax, provided the purchase price falls below certain thresholds. For instance, if you plan to use the property as your primary residence and the purchase price is under $830,000, you could qualify for a full exemption. Partial exemptions are also available for properties up to $865,000.

First Time Home Buyer’s Tax Credit

This non-refundable credit allows first-time buyers in Canada to recover some of the costs associated with their home purchase, such as legal fees and inspections. The credit is currently set at $10,000, offering a maximum tax rebate of $1500 as of 2023.

First Time Home Buyer Incentive

The First Time Home Buyer Incentive is a shared equity mortgage offered by the government, wherein they invest in the property alongside you. This incentive is not interest-bearing and does not require ongoing payments. However, you must repay the loan within a 25-year period or when the property is sold, whichever comes first. The loan amount is calculated based on the property’s fair market value at the time of repayment, typically ranging from 5% to 10% of the property value.

Example Scenario:

Let’s consider John, whose annual qualifying income is $83,125. With the First-Time Home Buyer Incentive, John can purchase a condominium unit priced up to $350,000. He has the minimum down payment of 5%, or $17,500. With a shared equity mortgage of $35,000 (10% of the home’s value), John’s mortgage payments are reduced by $200 per month or $2,401 annually. Upon selling the unit for $320,000, John would repay 10% of the current home value, amounting to $32,000.

It’s essential to note the recent replacement of the BC HOME Partnership with the First Time Home Buyer Incentive, offering new opportunities for aspiring homeowners.

By familiarizing yourself with these programs and exploring your eligibility, you can navigate the home buying process with confidence, making your dream of homeownership in British Columbia a reality.

Interested in purchasing your first home in the Greater Vancouver or Fraser Valley and utilizing one or more of the first time home buyer programs?

Aman Nanda specializes in first-time home buyers and is well aware of the programs and options available specific to first-time buyers!

Call/text us at 778-321-0074 or email to start a conversation with a Aman today.