Facts about BC Home Buyers Bonus & First Time Buyer’s Tax Credit

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

http://www.cra-arc.gc.ca

For more information, please contact us here at Invis West Coast Mortgages.  We are here to help.