Ten Ways You Can Save Money When Buying
1. Home Buyers’ Plan
Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to
$50,000) from their RRSPs for a down payment. Home buyers who have repaid their
RRSP may be eligible to use the program a second time. Canada Revenue Agency www.cra.gc.ca. Enter ‘Home Buyers’
Plan’ in the search box | 1.800.959.8287
2. GST Rebate on New Homes
New home buyers can apply for a rebate of the federal portion of the HST (the
5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of
the GST to a maximum rebate of $6,300. There is a proportional GST rebate for
new homes costing between $350,000 and $450,000. Canada Revenue Agency www.cra.gc.ca. Enter ‘RC4028’ in
the search box | 1.800.959.8287
3. BC New Housing Rebate
(HST)
Buyers of new or substantially renovated homes priced up to $525,000 are
eligible for a rebate of 71.43% of the provincial portion (7%) of the 12% HST
paid to a maximum rebate of $26,250. Homes priced at $525,000+ are eligible for
a flat rebate of $26,250. www.hstinbc.ca/making_your_choice/faqs/new_housing_rebate | 1.800.959.8287
4. BC New Rental Housing
Rebate (HST)
Landlords buying new or substantially renovated homes are eligible for a rebate
of 71.43% of the provincial portion of the HST, up to $26,250 per unit. http://www.hstinbc.ca/making_your_choice/faqs/new_housing_rebate | 1.800.959.8287
5. BC Property Transfer Tax
(PTT) First Time Home Buyers’ Program
Qualifying first-time buyers may be exempt from paying the PTT of 1% on the
first $200,000 and 2% on the remainder of the purchase price of a home priced
up to $425,000. There is a proportional exemption for homes priced up to
$450,000. BC Ministry of Small Business and Revenue www.rev.gov.bc.ca/rpt | 250.387.0604
6. First-Time Home Buyers’
Tax Credit (HBTC)
This federal non-refundable income tax credit is for qualifying buyers of
detached, attached, apartment condominiums, mobile homes or shares in a
cooperative housing corporation. The calculation: multiply the lowest personal
income tax rate for the year (15% in 2010) x $5,000. For the 2010 tax year, the
maximum credit is $750. Canada Revenue Agency www.cra.gc.ca/hbtc | 1.800.959.8281
7. BC Home Owner Grant
Reduces school property taxes by up to $570 on properties with an assessed
value up to $1,150,000. For 2011, the basic grant is reduced by $5 for each
$1,000 of value over $1,150,000, and eliminated on homes assessed at
$1,264,000. An additional grant reduces property tax by a further $275 for a
total of $845 for seniors, veterans and the disabled. This is reduced by $5 for
each $1,000 of assessed value over $1,150,000 and eliminated on homes assessed
at $1,319,000+. BC Ministry of Small Business and Revenue www.rev.gov.bc.ca/hog or contact your
municipal tax office.
8. BC Property Tax Deferment
Programs
Property Tax Deferment Program for Seniors. Qualifying home owners aged 55+ may
be eligible to defer property taxes. Financial Hardship Property Tax Deferment
Program. Qualifying low-income home owners may be eligible to defer property
taxes. Property Tax Deferment Program for Families with Children. Qualifying
low income home owners who financially support children under age 18 may be
eligible to defer property taxes. BC Ministry of Small Business and Revenue www.sbr.gov.bc.ca and enter ‘Property
tax deferment’ in the search box or contact your municipal tax office.
9. CMHC Mortgage Loan
Insurance Premium Refund
Provides home buyers with CMHC mortgage insurance, a 10% premium refund and
possible extended amortization without surcharge when buyers purchase an energy
efficient mortgage or make energy saving renovations. www.cmhc.ca/en/co/moloin/moloin_008.cfm#reno | 604.731.5733
10. LiveSmart BC: Efficiency
Incentive Program
Home owners improving the energy efficiency of their homes may qualify for cash
incentives through this provincial program provided in partnership with Terasen
Gas, BC Hydro, and FortisBC. Rebates are for energy efficient products which
replace gas and oil furnaces, pumps, water heaters, wood stoves, insulation,
windows, doors, skylights and more. The LiveSmart BC program also covers $150
of the cost of a home energy assessment, directly to the service provider. www.livesmartbc.ca/rebates | 1.866.430.8765
Source: Real Estate Board of Greater Vancouver