What Programs are Available for First Time Home Buyers?
If you have never purchased a condo, townhome or single family in Victoria, British Columbia you may qualify for several programs that can help you get into the real estate market.
According to Terri Hitchcock, a Greater Victoria Mortgage Specialist with the Mortgage Group, there are several first-time home buyer programs & exemptions:
Property Transfer Tax
Property Transfer Tax (PTT) is a land registration tax which is paid for by the home buyer in BC.
Here’s how It’s calculated
- 1% of the fair market value up to and including $200,000
- 2% of the fair market value greater than $200,000 and up to and including $2,000,000
- 3% of the fair market value greater than $2,000,000
First Time Home Buyer’s Exemption on the Property Transfer Tax:
As a first time home buyer you are exempt from this tax on the first $500,000 as long as the total purchase price does not exceed $835,000. There is a partial exemption between $835,000-$860,000
Newly Built Home Property Transfer Tax Exemption
Regardless of if you are a first time buyer or not, newly built homes are fully exempt from PTT up to $1,100,000 + GST. There is a partial exemption between $1,100,000 and $1,150,000 +GST.
RRSP Home Buyers Plan
As a first time home buyer you are allowed to withdraw up to $60,000 from your RRSPs to use towards your down payment.
For this program along with the others mentioned below the definition of a first time buyer is a little different. You would be considered a first time buyer if you did not occupy a home that you owned, or one that your current spouse or common law partner owned in the four year period leading up to applying for the program.
The home must be your primary residence in order to qualify and you must also pay the funds back within a 15 year period.
First-Time Home Buyers Tax Credit (HBTC)
This is a $10,000 non-refundable tax credit for eligible first-time home buyers, offering up to $1,500 in tax relief.
First-time homebuyers or those who haven’t owned a home in the previous four years, including the buyer’s spouse or common-law partner.
GST New Housing Rebate
Regardless of if you are a first time buyer or not, you may be eligible for a GST/HST rebate if you purchase a new or substantially renovated property to use as your primary residence. The exemption applies to houses with a completed fair market value of less than $450,000
First Home Savings Account (FHSA)
A first home savings account (FHSA) is a registered plan which allows you, if you are a first-time home buyer, to save to buy or build a qualifying first home tax-free (up to certain limits). For all programs and exemptions, it is important to review the detailed criteria posted on the Government websites to ensure you qualify.
In addition, knowing what programs and exemptions there are for first-time home buyers, it is a good idea to familiarize yourself with the cost of buying a property in Victoria.
If you are a first-time home buyer and have questions about buying a condo, townhome or house in Victoria or would like us to set you up on a personalized home search system, contact us. We would be delighted to help you open a new door
(This article was updated in April of 2024 and the above information was correct at that time. If government programs change we will update the article as soon as possible)
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Whether you are looking to buy or sell a home in Victoria, Oak Bay, Sidney, Saanich or on Vancouver Island – she’ll be on your side and make the process as stress free and seamless as possible.
