Homeownership can seem out of reach for many first time homebuyers in British Columbia. With housing prices skyrocketing, saving enough for a down payment is no easy feat. But take heart – there are numerous programs and incentives to help you buy your first home in BC!

This comprehensive guide will walk you through the key programs, rebates, grants, and tax credits available from both the federal and provincial governments. Read on to find out what you may qualify for as a BC resident buying your first home.

Key Takeaway

• BC and federal governments offer property tax exemptions, down payment loans, tax credits, and more to help first time homebuyers
• Major programs include the First Time Home Buyer Incentive, BC First Time Home Buyers’ Program, and Home Buyer’s Plan
• Eligibility depends on criteria like income, property value, residency status, and if you’ve owned before
• Combined savings from these programs can total $10,000+ for BC first time homebuyers

Federal First Time Home Buyer Programs

The federal government provides incentives that all Canadian first time homebuyers can access, including BC residents. Here are some of the key programs:

First-Time Home Buyer Incentive

This program from the Canada Mortgage and Housing Corporation (CMHC) offers qualifying buyers a shared equity mortgage. The government invests 5% or 10% of the home price (10% for new builds, 5% for resale), reducing your mortgage amount. It’s repaid when you sell the home or after 25 years.

Home Buyer’s Plan

Through this, you can withdraw up to $35,000 from your RRSP tax-free for a down payment. You’ll need to repay it over 15 years.

First-Time Home Buyer’s Tax Credit

Get a federal tax credit of up to $750 when you buy your first home through this. It’s non-refundable but helps offset closing costs.

Provincial Programs for BC First Time Homebuyers

In addition, the BC government offers several incentives exclusively for residents buying their first home in the province.

BC First Time Home Buyers’ Program

Get a full or partial exemption from the property transfer tax through this, potentially saving you thousands. It depends on the property value and your eligibility.

Property Tax Deferment Programs

Defer paying property taxes through low-interest loans if you have children or are over 55. The tax amount is repaid later.

Home Renovation Tax Credit

If you’re renovating your first home for accessibility, you may get 10% back on up to $10,000 in expenses. Certain criteria apply.

Newly Built Home Exemption

Receive full or partial exemptions from the property transfer tax when buying a newly constructed home under $750,000. This can save first time buyers thousands.

Grants and Rebates for Your New BC Home

Along with loans and tax breaks, the provincial and federal governments also offer grants and rebates to help offset the costs of buying and upgrading your first home in BC.

Down Payment and Closing Cost Assistance

• BC HOME Partnership: Get an interest-free loan for your down payment through this BC government program. The loan is repaid when you sell. (Not currently accepting applications but check for updates).
• First Home Savings Account (FHSA): Like an RRSP, this allows tax-free savings of up to $8,000 annually for a home down payment.

Home Energy Upgrades and Renovations:

• Greener Homes Grant: Get up to $5,000 from the federal government for renovations like insulation, solar panels, efficient windows, and more.
• CMHC Green Home: Receive a refund of up to 25% on your mortgage loan insurance premium when you make energy efficient upgrades.
• Home EnergyCoach: BC Hydro offers rebates up to thousands through this program when you install energy efficient heating, water, and more in your new home.

Additional BC First Time Homebuyer Rebates:

• BC Hydro and FortisBC: Get a free home energy evaluation and upgrades like insulation and LED lights through their Conservation Assistance Program if you meet income qualifications.
• GST New Housing Rebate: Receive up to 36% of the GST paid on a new home purchase back as a rebate. This depends on the purchase price.
• Oil to Heat Pump Rebate: Switch from oil to an electric heat pump and get up to $1700 back through this BC incentive.

Tips for Affording Your First Home in BC

Even with all the government assistance available, buying your first home in BC can still feel financially daunting. Here are 5 tips to stretch your budget:

• Save aggressively for your down payment through an FHSA or RRSP using tax-free growth
• Shop around for the best mortgage rates and negotiate with banks
• Consider a less expensive neighborhood or smaller home to keep costs down
• Apply for every applicable rebate and program – it can add up!
• Have realistic expectations about size, location, etc. Compromise on “nice to haves”

While prices are high in BC, rest assured that homeowners have gained significant equity, even just a few years after purchasing. With strategic saving and leveraging these first time homebuyer incentives, you can make homeownership possible!

Key First Time Home Buyer Program Eligibility

Here’s a quick overview of eligibility for some of the main programs:

Program	First Time Buyer Status	Residency Requirement	Income Threshold	Property Value Limit	Other Criteria
First Time Home Buyer Incentive	Yes	No	$120K household max	Varies	Min 5% down
BC First Time Buyers	Yes	Lived in BC 1+ years Or filed taxes in BC 2+ years	No	<$500K for full exemption, <$525K for partial	Must occupy as principal residence
Home Buyer’s Plan	In last 4 years	No	No	No	Min 5% down
GST New Housing Rebate	No	No	Yes, based on income	<$450K	Must occupy as primary residence

The key is understanding the eligibility requirements for each program and incentive. Connect with your real estate agent, mortgage broker, or other housing professionals to determine your options as a first time homebuyer in BC. With the right preparation and research, you can make your first home purchase more affordable.

Frequently Asked Questions

Q: What are BC First Time Home Buyer Programs?

A: BC First Time Home Buyer Programs are programs and incentives offered by the province of British Columbia to assist first-time home buyers with their home purchase. These programs include grants, rebates, and tax credits.

Q: Who is considered a first-time home buyer?

A: A first-time home buyer is someone who has never owned a home before, or has not owned a home within the past few years. Each program may have its own definition of a first-time home buyer, so it’s important to check the specific eligibility requirements.

Q: What is the home owner grant in BC?

A: The home owner grant is a program in B.C. that provides a reduction in property taxes for eligible homeowners. The amount of the grant varies depending on factors such as the assessed value of the home and the homeowner’s age.

Q: How do I qualify for the home owner grant?

A: To qualify for the home owner grant, you must be a Canadian citizen or permanent resident, live in British Columbia, and meet certain income and residency requirements. You must also have filed at least one income tax return as a B.C. resident.

Q: What is the property transfer tax?

A: The property transfer tax is a tax that is payable when you purchase a property in British Columbia. The amount of the tax is based on the fair market value of the property at the time of purchase.

Q: Are there any exemptions or rebates available for first-time home buyers?

A: Yes, there are exemptions and rebates available for first-time home buyers in B.C. For example, there is a newly built home exemption that may exempt certain newly built homes from the property transfer tax. There is also the BC Home Partnership program that offers a down payment assistance loan to eligible first-time home buyers.

Q: Can I use my RRSP for a down payment on my first home?

A: Yes, you can use your Registered Retirement Savings Plan (RRSP) for a down payment on your first home. The home buyers’ plan allows you to withdraw up to a certain amount from your RRSP, tax-free, to put towards the purchase of your first home.

Q: How much property transfer tax do I have to pay as a first-time home buyer in B.C.?

A: As a first-time home buyer in B.C., you may be eligible for a partial or full exemption from the property transfer tax. The amount of the exemption will depend on the fair market value of the property and whether it is newly built or not.

Q: What is the BC Home Partnership program?

A: The BC Home Partnership program is a program offered by the Province of British Columbia to assist first-time home buyers with their down payment. Eligible first-time home buyers can apply for a government loan that matches their down payment, up to a maximum amount.

Q: Are there any tax credits available for first-time home buyers in B.C.?

A: Yes, there are tax credits available for first-time home buyers in B.C. One example is the First-Time Home Buyer Tax Credit, which allows eligible first-time home buyers to claim a non-refundable tax credit on their income tax returns.

Conclusion

If you are thinking about home buying in British Columbia, there are several programs available to help first-time buyers purchase their first home. One of these programs is called the BC Home Partnership, which provides a tax rebate on the amount of property transfer tax paid when you purchase a home in BC.

To qualify for this program, the property must be your qualifying home, meaning it is your first-time home purchase and the mortgage is where the government shares in the upside of the home’s value. 

The program also reduces the minimum down payment required and provides a property transfer tax refund to eligible first-time home buyers. To be eligible for the program, you must have filed at least 2 income tax returns, including your first-time home buyers’ tax return, and the property must be located in the Fraser Valley or anywhere in the world.

 So if you’re a first-time home buyer in BC, these programs can help make your dream of homeownership a reality.

The wide array of grants, rebates, tax credits, and financing options highlighted here are designed to assist responsible, hard-working Canadians realize the dream of first time homeownership. While climbing onto the property ladder presents challenges, thoughtful planning, budgeting, and leveraging these resources can make the aspiration of owning your own piece of BC a reality. Work within your means, exercise patience and discipline, and your efforts will be rewarded with the pride, stability, and wealth-building benefits that come with owning your first home.

Key Takeaway: BC and federal governments offer property tax exemptions, down payment loans, tax credits, and more to help first time homebuyers. Combined savings can total $10,000+ for eligible BC residents buying their first home.

Ready to get started on your home search? Visit Strawhomes.com today and find your perfect dream home! With First Time Home Buyers Grant in hand, you can search confidently and make the most of this amazing opportunity!

Sources:

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2022-plan-grow-economy-make-life-more-affordable/first-time-home-buyers-tax-credit.html

https://www.td.com/ca/en/investing/direct-investing/articles/home-buyers-plan