This list of incentives, rebates, and grants available to current and future homeowners is our version of professional coupon clipping; Home Owner Edition.
Whether you're upgrading an appliance or saving for your first home, saving money where possible and taking advantage of free money is always a good idea.
Two new programs were launched this year: one for seniors (including family members living with seniors) and one for first-time homebuyers. If you can't benefit from any of these, chances are you know someone who can, so please feel free to share!
There are two ways to save on the P.T.T.: be a first time home buyer or purchase a new build. The exemption is available for first time buyers on properties priced up to $500,000 (and a partial exemption on prices up to $525,000) and on purchasing a new build up to $750,000 (and a partial exemption on prices up to $800,000). P.T.T. is a tax on home buyers only (not sellers) and if you qualify it can be a significant saving as rates are 1% on the 1st $100,000 (of the purchase price) and 2% on the remainder. Click here for detailed qualifications.
This new program to help first-time home buyers save for a home began this April 2023. The yearly limit is $8000, contributions are tax-deductible, withdrawals are tax-free and can be combined with your spouse to put towards your new home. Lifetime limits are $40,000 per individual and $80,000 per couple. This can be combined with the HBP.
The HBP allows you to withdraw up to $35,000 from your RRSP to buy a qualifying home for yourself or a related person with a disability, and is required to be paid back in 15 years. This can be combined with the new FHSA.
You can claim up to $10,000 in 2022 ($5,000 in 2021 and previous years) for the purchase of a qualifying home if both of the following apply: You (or your spouse/common-law partner) acquired a qualifying home & you didn't live in a home that you or your spouse owned in the current year or in the 4previous calendar years to be considered a first time home buyer. Our accountant sees A LOT of people missing out on this one and you can claim this retroactively.
Another new program this year is available to families interested in constructing a secondary unit on their property. Eligible families can claim 15% on expenses up to $50,000, so long as the expenses are related to the renovation and incurred after January 1, 2023. The maximum claim is $7,500 and the secondary suite must be for seniors aged 65+ or adults over the age of 18 who are eligible for the disability tax credit within the taxation year that includes the end of the renovation period.
The Canada Mortgage and Housing Corp offers a shared equity mortgage offered by the government, in which they invest in the property with you. The incentive is not interest bearing and does not require on-going payments, but you do have to repay the loan within a 25 year period or when sold, whichever comes first. CMHC will add to your down payment 5% of the purchase price on a resale property and 10% on a new property.
This reduces property taxes for home owners with an assessed or partitioned value up to $1.65 million. Basic grant: up to $570 for principal residences in the Capital, Greater Vancouver and Fraser Valley regional districts; an additional grant of $200 to rural home owners elsewhere in BC; and an additional grant of $275 to seniors aged 65+, those permanently disabled, and veterans of certain wars. (Grant is available but reduced above the threshold of $1.65 million. Grant may be available retroactively if you qualified last year and didn’t apply.)
The Home renovation tax credit for seniors and persons with disabilities (and family members living with seniors and persons with disabilities) assists eligible individuals with the cost of certain permanent home renovations to improve accessibility or be more functional or mobile at home. You can receive up to $1000.00 as a refundable tax credit.
BC Hydro and FortisBC offer home owners rebates for upgrades and improvements, including insulation, space and water heating systems and ventilation to reduce your energy bill. There’s even a bonus offer for completing three or more upgrades, and if you complete all of them, you can get up to $10,000. Click here to see what you can do.
The BC government (along with the Federal Government) offers rebates of up to $9000 for the purchase of a new electric vehicle. The BC Gov offers a rebate of up to $350 for a level 2 charger installed at home, and purchasing a used EV is P.S.T. exempt. BC also offers a program called Scrap-It: if you scrap your old gas vehicle under the program, you can receive a rebate of up to $500 on a qualifying new or used BEV, or up to $400 on a new or used PHEV.
We hope you found this list useful! If you need help accessing any of these opportunities, or have a question, get in touch.
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Steve Here & Selena Here
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