Simplify The Home Buying Experience!
Your journey to homeownership is our top priority! Buying a home can be a challenging process, especially for first-time buyers, and having an experienced agent by your side is crucial. From the initial pre-approval stage to the final closing and beyond, I am here to guide you through every step. With intricate knowledge of the real estate market and a commitment to your unique needs, I ensure a smooth and informed experience, making your dream of owning a home a reality.
As a first-time homebuyer, you have access to valuable incentives that can significantly impact your financial investment.
First Tome Home Buyer Property Tax Exemption:
The first time home buyers' program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax. This could equate to $8,000 in savings.
To qualify the property must:
- Only be used as your principal residence
- Have a fair market value of $500,000 or less
- Be 0.5 hectares (1.24 acres) or smaller
Newly Built Home Exemption:
The newly built home exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home.
newly built home includes:
- A house constructed and affixed on a parcel of vacant land
- A new apartment in a newly built condominium building
- A manufactured home that is placed and affixed on a parcel of vacant land
- An already constructed house that is removed from one parcel of land and affixed to another parcel of vacant land, as long as the house hasn’t been occupied since it was placed on the new parcel of vacant land
- A house resulting from the division of an existing improvement affixed to a parcel of land that was also subdivided, as long as this house hasn’t been occupied since the subdivision of the parcel
- A house converted from an existing improvement on the land. The previous improvement couldn’t have been used as residential (e.g. a warehouse converted into apartments)
To Qualify The Property Must:
- Be located in B.C.
- Only be used as your principal residence
- Have a fair market value of $750,000 or less
- Be 0.5 hectares (1.24 acres) or smaller
RRSP Home Buyers Plan :
With the federal government's Home Buyers' Plan, you can use up to $35,000 of your RRSP savings ($70,000 for a couple) to help finance your down payment on a home.
To qualify, the RRSP funds you're using must be on deposit for at least 90 days. You must also provide a signed agreement to buy or build a qualifying home. The best part is the withdrawal is not taxable as long as you repay it within a 15-year period. The payback amount is at least one-fifteenth a year of the amount you withdrew from your RRSP. So make sure you set up an automatic monthly, bi-weekly or even weekly contribution to your RRSP, to ensure you do not miss any repayments!
FSHA (First Home Savings Account)
The First Home Savings Account (FHSA) is a type of registered savings plan introduced by the federal government in 2022. An FHSA is designed to help you save for your first home, tax-free and help you reach your vision of owning a home faster!
- Annual contributions are capped at $8,000 up to a $40,000 lifetime contribution limit.
- A maximum of $8,000 unused contribution room can carry forward to the following year.
- The account can stay open for a maximum 15 years4 or until the end of the year you turn 71
Down Payment Requirements:
- For homes priced at $500,000 or less, the minimum down payment is 5%. For example, if you're eyeing a home with a price tag of $450,000, your minimum down payment would be $22,500 (5% of $450,000).
- Now, when considering homes above $500,000, the minimum down payment structure changes. The first $500,000 follows the 5% rule, while any amount above that requires a 10% down payment. So, if your dream home is $700,000, your calculation would be 5% of the first $500,000 ($25,000) plus 10% of the remaining $200,000 ($20,000), resulting in a total minimum down payment of $45,000.
- When purchasing a home priced at $1,000,000 or more, it's crucial to note that the minimum down payment is 20% of the total purchase price. For instance, if you're eyeing a $1,000,000 home, the minimum down payment would amount to $200,000. This requirement ensures a solid financial foundation for both buyers and lenders, emphasizing the significance of a strategic approach to high-value property investments.
