First Time Home Buyers Grant
Info and tips for the First Time Home Owner Grant in BC
After budgeting and saving, looking through ads and meeting with realtors, seeing home after home and finally closing the deal, the associated taxes and fees can come as an unexpected shock. Luckily for first time buyers in BC, there are programs in place to make the process easier - one of them being the First Time Home Owner Grant. This allows people becoming homeowners for the very first time to pay less property transfer tax - or none at all. This can mean thousands of dollars in savings, exactly when they are most needed.
Just where do these tax savings come from? Any time property changes hands in BC, it is subject to a one percent tax on the first two hundred thousands dollars of value and two percent on any value above that. There is actually another tier beyond that taxed at three percent, but not in a price range that affects the vast majority of first time buyers.
Of course, in order to claim this exemption, a person has to meet certain provisions. As it was hinted earlier, the First Time Home Owner Grant will not eliminate the property transfer tax in everyone’s case. But if an individual does meet the requirements, they simply have to indicate it when filing the requisite Property Transfer Tax Return. Or, the reader can fill out a refund application - also called a FIN 265 form.
Couples can have the opportunity to take advantage of the First Time Home Owner Grant twice, provided they each separately purchase the properties and hold the title in their own names. Even if a person had to get a title transfer to accomplish this, the money saved with the first time home owner grant would more than cover the cost.
Regardless of how a person uses the first time home owner grant, it should be taken along with a sense of accomplishment that only comes from owning a home. A person need only relax for the first time in their new home to fully understand what this can mean.