Did you know there are government programs that can help you reduce the cost of home ownership? Below are two programs designed to help you get the most out of your investment.
The Homebuyers’ Plan
This federal government program allows home buyers to withdraw up to $25,000 from a registered retirement savings plan (RRSPs) to buy or build a qualifying home for themselves or for a related person with a disability. Couples can withdraw up to $50,000.
Qualifying homes include single-family, semi-detached, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings. A share in a co-operative housing corporation that entitles the buyer to possess, and gives them an equity interest in a housing unit also qualifies.
Repayment of borrowed RSP funds must begin two years after the funds were withdrawn.
For information on how to participate, visit the CRA website by clicking here.
The Property Transfer Tax Exemption Program
This BC Government program exempts eligible first-time buyers from the Property Transfer Tax.
The tax, calculated at a rate of one per cent on the first $200,000 and two per cent on the remainder of the purchase price of a home, adds $5,817.98 to the cost of a $390,899 benchmark priced apartment in Greater Vancouver.
To qualify for the full exemption, the fair market value must not exceed $425,000 (there is a proportional exemption for homes priced up to $450,000) and the home buyer be a Canadian Citizen or a permanent resident and must not have previously owned home anywhere.
For more information, click here.