Government incentives for first time home buyers in Canada
The Canadian government has a few incentives available to first time home buyers. If you are considering buying your first home in Nanaimo you might want to take advantage of one or more of the following offerings:
The Home Buyers Plan:
One of the best known and most utilized programme is the Home Buyers Plan. This plan allows eligible people to withdraw up to $25,000 tax free from their RRSP to purchase or build a home. People using this plan have to start repaying the amount two years after withdrawing the funds and the quantity must be fully repaid within 15 years.
Tax free savings account:
This is a great incentive to people saving for their down payment. The tax-free savings accounts allow people to save money and not pay any tax on interest accrued.
The BC First-Time New Home Buyers' Bonus
The BC First-Time New Home Buyers' Bonus is a one-time bonus payment worth up to $10,000 for first-time new home buyers in BC.
Applicants can receive a cheque of up to $10,000, if they qualify, and the amount of the bonus is not taxable. Here are the requirements for eligibility
Property Transfer Tax First Time Home Buyers' Program
Introduced in 1994, the First Time Home Buyers' Program is designed to help British Columbians purchase their first home. Under the program, eligible purchasers can claim an exemption from Property Transfer Tax if the fair market value of the home is less than the threshold amount..
These Government programmes assist first time home buyers to get their financial footing. If you would like any additional information on purchasing your first home in the Nanaimo area please give me a call.