While the thought of making such a significant purchase as a new home is daunting for everyone – it is particularly so for first time buyers coming from their parent's home or from a rental unit where they were free to pack up and go. At the same time, it can be one of the most exciting and financially beneficial experiences of a lifetime.
Everything we've said in our 'Buying Tips' applies to you, but as a first time buyer you are also fortunate in that there a certain financial concessions available under provincial government programs that can help make it easier to finance your home.
Here's how:
Everyone who registers a property at the Land Title Office must pay a Property Transfer Tax. However, as a First Time Home Buyers you may be eligible for an 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
Eligible Properties
The property you purchase qualifies if:- the fair market value of the property is not more than the current threshold of $425,000,
- the land is 0.5 hectares (1.24 acres) or smaller, and
- the property will only be used as your principal residence.
Even if the property does not meet all of these requirements, you may still qualify for a partial redemption.
When do I apply?
You apply when you register the property with the Land Title Office - which is usually done through your lawyer or notary public.
For full information on this program, visit the Province of BC website at http://www.gov.bc.ca/sbr