Blog by Izabela Wasiela

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First time homebuyers info

As a first timehome buyer you are eligble for:

Home Buyers' Plan (HBP)

The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability .

Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year.

Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year.


 

You pay property transfer tax each time you register a property at the Land Title office. (1% on the first $100,000 and 2% on the balance.)

The First Time Home Buyers’ Program

If you are purchasing your first home, you may qualify for an exemption from property transfer tax

if certain requirements are met.

WHAT ARE THE REQUIREMENTS?

Purchaser

You qualify for the exemption if:

you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada,

you have lived in British Columbia for 12 consecutive months immediately before the date

you register the property, or you have filed 2 income tax returns as a British Columbia

resident during the 6 years before the date you register the property,

you have never owned an interest in a principal residence anywhere in the world at anytime,

and you have never received a first time home buyers’ exemption or refund.

Property

The property you purchase qualifies if:

the fair market value of the property is not more than the current threshold of $425,000, (there is a partial exemption upto $450,000)

the land is 0.5 hectares (1.24 acres) or smaller, and

the property will only be used as your principal residence.

If the property does not meet all of these requirements, you may still qualify for a partial

exemption.

 

Property Transfer Tax