Do You Qualify for First-Time Home Buyer Programs?

Kim PhillipsReal Estate, Homeowner Hacks, Inside Fraser Valley, Langley House Market, Surrey, Tips

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Buying a new home is exciting, especially when it’s your first time purchasing real estate. Not only is it a great investment for your future, but buying a home gives you limitless opportunities to create your dream space. As many BC residents know, the luxury of becoming a homeowner involves an investment of time, effort, and money.

To maximize on your investments as a new buyer, the team at Kim Phillips Real Estate can provide guidance and assistance to create a seamless experience for you. Seeking professional help in real estate is especially helpful when you’re a first-time buyer. There are many factors that contribute to the homeowner’s experience and potential money saving opportunities available for you.

If this is your first time buying a home, you may be eligible for an array of first-time buyer’s programs. Many of these free government programs can help minimize costs when purchasing your first home. Find out if you qualify for any of these money saving federal and provincial programs as a first-time buyer:

BC’s First-Time Buyer Program

As a first-time buyer, the provincial government of British Columbia has set up a program to make the transition from renter to owner a little less taxing – literally. With BC’s first-time buyer program, the amount of property transfer tax that buyers owe when purchasing a new home is reduced or all-together eliminated.

When you purchase a new home, there’s a property transfer tax that’s required with that purchase. For BC residents who qualify as first-time home buyers, this program provides the option to receive a full or partial exemption from this tax payment.

In accordance with the BC government’s qualifications, you must:

  • Be a Canadian citizen or permanent resident
  • Be a first-time homeowner/ never owned a registered interest in a property anywhere in the world
  • Have yet to receive an exemption or refund as a first-time buyer
  • Prior to registering your new property, have either:
    • Lived in BC for at least one or more year(s)
    • Filed at least 2 income tax returns as a BC resident within the last 6 taxation years

Along with these restrictions, certain factors about the property itself affect first-time buyer’s eligibility for this program. Details such as market value and property size will determine whether you are exempt from the property transfer tax.

If you’re a first-time buyer but you’re co-purchasing with an individual who has previously owned property, you can still qualify for partial tax exemption.

As there are a lot of moving parts that affect your eligibility for government programs, it’s normal to feel overwhelmed. Therefore, it’s best to work with an experienced and well-versed real estate company who can inform you of these money saving opportunities.

If you’re looking for the best realtor in Langley, Cloverdale, or South Surrey, the team at Kim Phillips Real Estate puts your financial well-being first. When working with Kim and her team, you’ll receive first-hand expertise on how to maximize your investment and reduce costs.

Federal First-Time Buyer’s Tax Credit

If you’re a first-time homebuyer, you may be eligible to receive up to $750 in tax rebates. The federal government has a tax credit in place for Canadian citizens to receive a rebate on your next federal tax return when buying a qualifying home in BC.

To receive this tax rebate, you need to:

  • Qualify as a first-time buyer
    • You or your spouse/ common-law partner have acquired a qualifying home
    • Neither you nor your spouse/ common-law partner have lived in a home owned by either party
  • Fill out your tax form
    • Write off $5,000 on the correct line of your tax form (currently line 31270) which will calculate a $750 dollar rebate accredit to you the following year

Federal First-Time Buyer Incentive

In September of 2019, the federal government launched interest-free loans that don’t require monthly payments. This incentive reduces the cost of new homeowner’s monthly mortgage payments without inflating the cost of the initial down payment.

To qualify, you must:

  • Be a first-time homebuyer or have not occupied a home owned by you for at least 4 years prior
  • Be a Canadian citizen, permanent resident, or non-permanent resident who’s eligible to work legally in Canada
  • Possess 5 per cent of the minimum down payment
  • have a maximum annual pre-tax income of $120,000

There are more factors that affect your eligibility for this incentive as a first-time buyer. To find out if you qualify, click here or consult the experienced real estate team at Kim Phillips Real Estate.

What’s Next?

As a first-time buyer, it’s best to consult an experienced real estate team to help you navigate the field. To ensure that you’re not missing out on any money-saving opportunities, the team at Kim Phillips Real Estate can provide industry knowledge and exceptional service. To work with a dedicated team of agents who are experts in Cloverdale, South Surrey, and Langley real estate, reach out today.