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The Top Six Incentives for Home Buyers

The Top Six Incentives for Home Buyers

Incentive 1: the BC government’s First-time Home Buyers’ Program

When you buy a home, the BC government charges a tax of 1% on the first $200,000 of the purchase price and 2% on the remainder. Eligible first-time buyers can purchase tax-free. For information visit: http://www.sbr.gov.bc.ca/documents_library/bulletins/Ptt_004.pdf

Incentive 2: The BC Government’s Home Owner Grant

If you own your home, you can claim the Home Owner Grant. For 2009, the ceiling for the phase-out of the grant is $1,050,000. Properties valued higher than this amount have the grant reduced by $5 for every $1,000 of assessed value in excess of the ceiling. The basic grant is eliminated for properties valued at $1,164,000+ and the additional grant, available to seniors, veterans and disabled persons, is eliminated for properties valued at $1,219,000+

Incentive 3: The fFederal Government’s Home Buyers' Plan (RRSPs for down payments)

The withdrawal limit has increased to $25,000 from $20,000. For information, visit www.cra.gc.ca. In the search box, type Home Buyers Plan. Go to Suggested Links and then to:

  • Home Buyers' Plan (HBP): conditions, how to participate, cancel, repay, and a Q & A.
  • The Home Buyers’ Plan Guide: a 22 page guide that covers all aspects of the plan; and
  • Form T1036 Home Buyers’ Plan Request to Withdraw Funds from an RRSP in pdf or text formats. For information: 1-800-959-8281.

Incentive 4: The Federal Government’s Home Renovation Tax Credit

Eligible home owners may qualify for a tax credit of up to $1,350 for home improvement projects. For information, go to www.cra.gc.ca and in the search box type Home Renovation Tax Credit. There is a Q & A with data on eligible dwellings, required documents and more. Your 2009 personal income tax return will include a new line to allow you to claim the credit.

Incentive 5: The Federal Government’s First-Time Home Buyers' Tax Credit

This provides up to $750 in tax relief to buyers with eligible costs associated with buying their first home, including legal fees and land transfer taxes. Details are still to be worked out. For information, go to www.cra.gc.ca. In the search box type First-time Home Buyers’ Tax Credit. There is a Q&A. Your 2009 personal income tax return will include a new line to allow first-time home buyers to claim the credit.

Incentive 6: The Federal Government’s ecoENERGY Retrofit Program

This gives property owners grants of up to $5,000 to offset costs of energy-efficiency improvements. For information on retrofit grants and incentives for residential property owners, commercial, institutional and industrial buildings, go to Natural Resources Canada website http://oee.nrcan.gc.ca/corporate/retrofit-summary.cfm.

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