Here is a recap of the two programs currently in effect:
1. New Home Buyer’s Bonus:
-Deadline is fast approaching. Must purchase before April 1, 2013.
– Amount is 5% of purchase price to a maximum of $10,000
– Applies only to purchase of new construction or substantially renovated property
– All buyers must be first time home owners, anywhere, ever
– Must be a BC resident at the time of purchase
– Must live in the home as primary residence
– Can be used for detached houses, semi-detached houses, duplexes and townhouses, condominium units, mobile homes.
– You must complete the form and apply for the bonus. Form can be found at: http://www.sbr.gov.bc.ca/documents
– Funds are sent to buyer upon approval
– Funds cannot be used to assist in down payment, closing costs or used to qualify for the mortgage in any way.
First Time Home Buyer’s Tax Credit
– Canada wide
– Non-refundable tax credit applied against taxable income using the lowest marginal tax rate to calculate. Maximum $750.00
– Apply using line 369 of Schedule 1 on the Federal tax form
– Only reduces taxes by that amount, not a bonus or grant
– Applies to purchase of new and existing homes
– Applicant or spouse must be first time home buyers, ie not have lived in a home owned by self or spouse in any of the 4 preceding years
– Apply when filing income taxes in the year of purchase
For more information, please contact us here at Invis West Coast Mortgages. We are here to help.
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