BC First-Time New Home Buyers' Bonus

For several years the Real Estate Board has been petitioning the government to help first time buyers with the property transfer taxes that add to the cost of a home. It looks like they have listened. On February 21, 2012 the government implemented a temporary BC First-Time New Home Buyers' Bonus.

Effective immediately to March 31, 2013, the bonus is a one-time grant for eligible first-time new home buyers. It is equal to 5% of the purchase price of a new home, or if you are building your own home, 5% of the land and construction costs subject to HST. The maximum bonus is $10,000 and it will come in the form of a cheque from the Ministry of Finance.

How to qualify:

1. It must be an eligible home in BC
2. You can never have owned a primary residence
3. You must have filed a 2011 BC resident personal income tax return or, if you moved to BC in 2012, you must file a 2012 tax return.
4. You must enter into a written agreement after February 21, 2012
5. You have to live in the home as your primary residence

All types of housing are eligible including float homes and homes in a cooperative housing corporation.

Individual home buyers are eligible for the full bonus based on a net income of up to $150,000. The bonus is reduce by 20 cents for every dollar earned above $150,000 and is zero if you earn more than $200,000. Four couples buying the bonus is reduced by 10 cents for every dollar in income over $150,000 and reduces to zero for couples earning over $250,000.

Read more here...