The path to homeownership in Canada’s most expensive province is often a long and winding road. With the average B.C. home price sitting at over $1,000,000, first-time homebuyers in British Columbia will likely have to rely on a combination of very careful saving strategy and sheer luck. However, it’s well worth all the work it takes.
British Columbia is arguably the most desirable place to live in Canada. With its picturesque natural landscapes – from its mountains and old growth forests to its beaches and bustling urban centres – the West coast has something for just about everyone.
First-time homebuyers need all the help they can get with buying a house in British Columbia. Here are some programs that can help reduce the overall cost of homeownership in the province.
BC First-Time Home Buyer’s Program
The B.C. First-Time Home Buyer’s Program can help first-time buyers reduce their general costs. The program aims to reduce or eliminate the provincial land transfer tax usually incorporated into the closing cost of buying a home.
First-time buyers purchasing a home worth up to $835,000 can receive an exemption from the tax. Buyers pay no tax on the first $500,000 of the home’s value, and even if the home exceeds the price limit, partial exemptions are still available for homes up to $860,000.
Newly Built Homes Exemption
Purchasing a new build or pre-construction home in B.C. has its perks. The Newly Built Homes Exemption can reduce or erase the provincial property transfer tax on new construction or pre-construction homes, saving first-time buyers a bit of cash upon closing.
Newly built homes worth up to $1.1 million that sit on 1.24 acres of land or less can qualify for a full exemption of the property transfer tax. Homes worth more than $1.1 million but less than $1.5 million may receive a partial exemption.
B.C. Home Owner Grant
The B.C. Home Owner Grant offers eligible buyers an annual property tax reduction up to $770 per year. Tax reductions for homes within the Metro Vancouver, Victoria or Fraser Valley regions are capped at $570 per year.
This program is designed to provide a little bit of relief for any eligible homebuyer – not just first-time buyers. In order to qualify for the program, one must:
- Live in B.C.
- Be a Canadian citizen or permanent resident
- Be the registered owner of the home
- Use the property as a principle residence.
Qualifying homes must not exceed a value of $2,125,000. Homes valued over the threshold will have the grant reduced by $5 for every $1,000 over the threshold.
All of these programs aim to reduce the overall cost of homeownership through tax relief and reduced closing costs. For assistance with saving for a down payment, look to federal programs such as the First Home Savings Account.
These three provincial incentives may be combined with federal programs, such as the Home Buyers’ Plan and GST/HST New Housing Rebate. Before purchasing a home, it’s important to do some research and ensure eligibility criteria for combined programs is met.
If you’re ready to start your searching for your first home in British Columbia, Livabl has all the resources you need.
