FIRST TIME HOMEBUYER?
HERE’S A FEW TIPS TO HELP GET YOU STARTED
As a first time home buyer in Langley, there’s a whole lot to learn. This is likely the biggest investment you’ve ever made – and the more you know, the better your decisions will be. Whether you’re buying a presale condo in Yorkson, a townhome in Walnut Grove or a detached home in Brookswood, there are a lot of ins and outs to buying your first place.
GOVERNMENT PROGRAMS, TAX BREAKS & MORTgAGE INSURANCE
Both the federal and provincial governments have programs in place to help make home ownership more attainable for first time buyers. It important to speak with your accountant and legal representative to find out if you can make these programs work for you.
First Time Home Buyers’ Program- Government of British Columbia
The First Time Home Buyers’ Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
If one or more of the purchasers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.
For further information and to find out if you qualify for an exemption visit http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/first-time-home-buyers
Home Buyer Plan for First Time Home Buyers (HBP)- Government of Canada
The federal government’s Home Buyers’ Plan (HBP) is a program that allows you to withdraw money from your registered retirement savings plan (RRSPs) to buy or build a qualifying home. This money is not taxed as income as it would normally be, but you do have to pay it back. You have 15 years to repay the money, starting two years after the initial withdrawal. The maximum for such withdrawals is $25,000.
For more info on the HBP, visit the Canada Revenue Agency’s website at http://www.cra-arc.gc.ca/hbp/
First Time Home Buyer Tax Credit (HBTC)
The costs associated with purchasing a home can be a particular burden for first-time home buyers, who must pay these costs on top of saving the money for a down payment. Closing costs include one-time items such as lawyer fees, GST (on newly constructed homes), and adjustments (e.g. taxes or utilities prepaid by the seller) that allow you to complete the house purchase.
To assist first-time home buyers with these costs, the government created the First-Time Home Buyers Tax Credit, a $5,000 non-refundable income tax credit that results in up to $750 in federal tax relief for each eligible individual. The rules to qualify as a first-time home buyer are generally the same as those that apply under the Home Buyers’ Plan (HBP)
For more information visit http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html
Canada Mortgage and Housing Corporation (CMHC)
The Canada Mortgage and Housing Corporation helps buyers by providing mortgage loan insurance so that a buyer can buy a home sooner–with as little as 5% down payment. To find out all about the programs, including the costs of insurance, visit the CMHC website.
For more information visit https://www.cmhc-schl.gc.ca/en/corp/nero/jufa/jufa_033.cfm
Have questions? Get In Touch
Call PORTER GROUP anytime to talk about your home search and to receive our HOME BUYERS GUIDE which will provide you with lots of information to help make the home buying process easier.