Plans that save you money

This is a busy time in the real estate market, and both the federal and provincial government offer resources, grants and rebates for new and current home owners.

There are several savings programs available. It’s a great idea to be aware of these programs when making your financial decisions.

Here’s a list of 10 of these programs, but there are probably close to 30 available.

  • B.C. Home Owner Mortgage and Equity (HOME) Partnership program: Assists eligible first-time homebuyers by providing repayable down payment assistance loans. It contributes to your personal down payment, up to a maximum of five per cent of the purchase price. The loan is interest-free and payment-free for five years.
  • B.C. Property Transfer Tax (PPT) First-Time Home Buyer’s Program: Qualifying first-time home buyers may be exempt from paying the PTT of one per cent on the first $200,000 and two per cent on the remainder of the purchase price of a resale home priced up to $475,000.
  • Home Buyers’ Plan: Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs to assist with the purchase of a home. The funds are not required to be used only for the down payment, but for other purposes to assist in the purchase of a home.
  • First-Time Home Buyers’ Tax Credit (HBTC): Eligible individuals who bought a qualifying home in 2016 can claim the home buyers’ amount of $5,000 when filing their 2016 income tax return. For 2016, the maximum tax credit is $750.
  • B.C. Seniors’ Home Renovation Tax Credit: Assists eligible seniors 65+ with the cost of some permanent home renovations to a principal residence to improve accessibility. The maximum refundable credit is $1,000 per tax year.
  • CMHC Mortgage Loan Insurance Premium Refund: Provides home buyers with CMHC mortgage insurance, a 10 per cent premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient home or make energy saving renovations.
  • B.C. Property Transfer Tax Newly Built Home Exemption: Qualifying buyers of new homes may be exempt from paying the PTT on a newly built home or newly subdivided unit priced up to $750,000.
  • Home Adaptations for Independence (HAFI): A program jointly sponsored by the provincial and federal governments provides up to $20,000 to help eligible low income seniors and disabled home owners and landlords finance modifications to their homes to make them accessible and safer.
  • B.C. Home Owner Grant: Reduces property taxes for home owners with an assessed value up to $1,600,000. The basic grant is $570 here in the Okanagan plus and additional grant of $200 to rural home owners. There is also an additional grant of $275 to seniors aged 65+ and veterans of certain wars.
  • B.C. Property Tax Deferment Programs: Qualifying home owners aged 55+ cam defer property taxes. Qualifying low-income home owners can defer property taxes and qualifying home owners who financially support children under the age of 18 can defer property taxes.

If you would like further information on any of these programs or other programs that might be available in your area, please let me know.

More Mortgage Matters articles

About the Author

April Dunn is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects. She has been assisting clients to purchase, refinance or renew their mortgages for over 20 years.

April has experience as a Credit Union manager, a Residential Mortgage Manager with a large financial institution and as a licensed Mortgage Broker. By specializing in Strategic Mortgage Planning she has the tools available to build a customized mortgage plan, with the features and options that meet your needs.

April provides a full range of residential and commercial mortgage financing options for clients all over the province of British Columbia and across Canada through the Mortgage Architects network.

Contact e-mail address: [email protected] or by phone at: 888-561-2679.

Website:  www.reddoormortgage.com

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

Previous Stories