Leanne Drolet

Royal LePage Sterling Realty

Office 604-421-1010

Cell 778-840-7211

Email: Leanne@realtygal.ca

Categories

New 1st time home buyers & HST changes!

The B.C. First-Time New Home Buyer's Bonus

 

As was announced last week, the BC government intends to implement a temporary BC first-time new home buyers' bonus up to $10,000 (subject to approval by the legislature).  Effective date February 21, 2012 to March 31, 2013.  

 

The requirements to qualify for an eligible first-time new home buyer.


Qualification for a first-time new home buyer are: 

  • You purchase or build an eligible new home located in BC.
  • You, or for couples, you and your spouse or common-law partner, have never previously owned a primary residence;
  • You file a 2011 BC Resident Personal Income Tax Return, or if you move to BC after December 31, 2011, you file a 2012 BC Resident Personal Income Tax Return (you will not be eligible for the bonus if you move to BC after December 31, 2012);
  • You are eligible for the BC New Housing Rebate; and
  • You intend to live in the home as your primary residence.

Further Clarity:

  • This is a $10,000 income tax credit -not cash.
  • The tax credit is equal to 5% of the home price, maximum of $10,000.
  • The tax credit is pro-rated based on your/family income and phases out for higher income earners.
  • Tax Credit is applied at the time you file your annual income tax return. Not to be construed as funds that is available at closing date of purchase. The $10,000 tax credit is effectively applied as an offset against your income. Since this is a BC tax credit, not federal, it only applies to the BC tax paid on your personal income. The typical BC tax rates for individuals are 7.7%. So in this case you would receive a tax payment of $770.

HST/GST Rebates in BC

 

Buyers of new homes are eligible for a rebate of 71.43% of the Provincial portion (7% PST) of the HST paid on a new home up to a maximum rebate of $26,250. These rebates are available with respect to newly constructed or substantially renovated homes purchased or constructed as a place of primary residence. Current Homes prices more than $525,000 will be eligible for a maximum rebate of $26,250. However as of April 1st, 2012 the Purchase Price threshold increases to $850,000 with a maximum rebate of $42,500, home prices above will still also be eligible for the maximum of $42,500.

 Also as of April 1st, 2012 certain purchases of new housing used as a second or recreational residence will be eligible; this is limited to purchases made outside of Greater Vancouver Regional District area.

 

Currently still available is the Federal GST new housing rebate, which is 36% of the Federal portion (5% GST) maximum rebate $6,300, on a Purchase Price of $350,000.For homes above $350,000 but no higher than $450,000.00, the rebate is gradually reduced and is calculated by using the following formula: $6,300 x [$450,000 - the purchase price] / $100,000. In this example New Housing Rebate would be $3,150.00, for a net tax payable of $16,850.00. There is no GST New Housing Rebate on homes valued at over $450,000.00.

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.