Vancouver’s First Time Home Buyers

There is Only One First Time

First timers like old timers, should get a break.

If you are a first time buyer of a new Vancouver home and meet the government’s qualifications – you win!

In contrast, if you are an old timer, it is probably not wise to buy green bananas.

Vancouver’s First Timer Bonus

British Columbia’s FTHB First Rule

The bonus is applied for separately when a first time Vancouver home buyer purchases new construction and pays HST.

FTHB – More Rules

  • Only applies in British Columbia
  • 5% of the purchase price to a maximum of $10,000 bonus payable.
  • Applies only to purchase of new construction or substantially renovated property.
  • All buyers must be first time homeowners, anywhere, ever.
  • Separate form to be completed and applied for once Government form is made available. Buyers must keep all documents related to transaction.
  • Funds sent directly to buyer upon approval.
  • Applies to fewer potential homebuyer’s but big bonus if qualified.
  • Bonus is phased out for higher income earners.

B.C. Reading – First Time Home Buyer

Tax Credits FTHB Bonus

Now for the FED’s – the HBTC

  • Applies Canada wide.
  • Non-refundable tax credit applied against taxable income using the lowest marginal tax rate (15% in 2009 = $750 maximum tax refund) to calculate.
  • Apply using line 369 of Schedule 1 on the Federal tax form
  • Only reduces taxes payable by that amount, not a bonus or grant
  • Applies to purchase of new and existing homes
  • Applicant or spouse (or common law) must be first time home buyers, i.e. not have lived in a home owned by self or spouse in any of the 4 preceding years
  • Apply when filing income taxes in the year of purchase
  • Applies to more people (all first time buyers) but much less money

Fed Reading – Home Buyers Tax Credit

HBTC

Adapted Courtesy Rob Regan-Pollock

Image Credit: Flickr-Mauren Veras

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

When Life Moves You - contact Larry:

*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

Peter Pan Says:
March 17th, 2012 at 9:03 am

A subsidy to BC homebuilders and developers disguised as assistance to first time homebuyers. Gotta love BC’s “free enterprise” and “smaller government” party.

ZRH2YVR Says:
March 18th, 2012 at 12:09 pm

Agree – This is a subisidy to the developers.

Never thought I would vote NDP evet – – but can say that this government has lost my support 100% and most of my co-workers as well. First killing the HST and now this? The government has lost all credibility. Let’s see them take a stand and do something for this province that

Not much of name... Says:
March 18th, 2012 at 12:16 pm

Won’t people be surprised when they don’t get a cheque for $10k, but rather something much smaller. After all, it’s a tax credit.

Peter Pan Says:
March 18th, 2012 at 11:12 pm

Clark doesn’t care what size of a cheque first time homebuyers get… She’s just looking for good publicity and fat donations from the construction companies and developers.

Bubbleboy Says:
March 21st, 2012 at 2:15 pm

Larry,

You’ve been a quiet man lately. You’ve missed a few days on the dailies.

March 22nd, 2012 at 10:52 pm

@bubbles
I died, I went to heaven and then remembered. Oops I said to myself I will upset bubbles cuz I didn’t get to the dailies. St. Peter said go back and keep Bubbles happy. 🙂

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