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A first-time buyer will be exempt from paying $4,920 on a $8,200 property transfer tax bill. A low-income grant supplement is not available in respect of any property for the 2006 tax year or any tax year before 2006. The program respecting veterans supplements established under subsection , the provisions of this section relating to that program and sections 2.1 and 7.1. An eligible occupant who received the benefit of the grant has not compensated the owner for the amount of the benefit. If the grant administrator determines that an applicant for a grant was, for a tax year, entitled to a grant in an amount greater than the amount of the grant approved, subject to subsection , the grant administrator may refund to the applicant, out of the consolidated revenue fund, an amount equal to the difference. 12 To enable a municipality to exercise a power under section of the School Act or to perform a duty under this Act, the grant administrator must, subject to the regulations, report to the municipality information relating to grants approved under section 10 of this Act in respect of the properties located within the municipality.
The Application for Home Owner Grant, in Schedule 1 of this regulation, must be printed in full on the portion of the tax notice to be retained by a collector after receipt of the tax for which the notice is prepared. If you wish to start optional early repayment, during the first five years of the mortgage term, please complete and submit the Pre-Authorized Debit Agreement form. The form must be received prior to the 15th of the month to be effective the following month. During the first five years, before mandatory repayment commences, the program will send you an Annual Mortgage Statement and a Principal Residence Declaration. For each individual on the title of the property, the declaration must be signed and sent back to BC Housing along with supporting documentation. If you wish to start optional early repayment, please complete and submit theEarly Repayment Pre-Authorized Debit Agreement form.The form must be received prior to the 15th of the month to be effective the following month.
Water, Land and Resource Stewardship
18 An applicant is not eligible to receive a supplement if the amount of the supplement would be less than $25. The primary purpose of the modification is not to increase the value of the principal residence or the land. A person is considered to receive help for the purposes of subsection if, in the tax year, costs of at least $150 per month on average are incurred to obtain the help. In the case of a $400,000 home, the foreign national will need to pay $6,000 property transfer tax. If the value of the home that you are purchasing has a fair market value of less than $500,000, then the First Time Home Buyers’ Exemption would cover the full amount of the transfer tax.
For homes with prices between $500,000 and $525,000, the amount of the tax exemption is gradually reduced. First-time home buyers purchasing a home that costs $525,000 or more will not receive any property transfer tax refund amount. Subsection does not apply if, in the tax year for which the new grant is claimed, the new applicant became an owner of the property in respect of which the new grant is claimed. Who has applied for and received a supplement for the tax year in which the eligible person ceases to occupy the residence, in each of the subsequent 2 tax years that the period of the eligible person's absence from the residence continues on an uninterrupted basis. 3 An owner of an eligible building is entitled to a grant with respect to that eligible building in an amount equal to the total of all amounts that the owner is entitled to under subsections to (3.1).
What is the BC Home Owner Grant?
5 An owner of a multi dwelling leased parcel that contains eligible multi dwelling leased parcel residences is entitled to a grant with respect to that multi dwelling leased parcel in an amount equal to the total of all amounts that the owner is entitled to under subsections to (3.1). Despite subsections to (3.1), if the net taxable residential value for school purposes of an eligible apartment or eligible housing unit as assessed exceeds the threshold amount, the amount of the grant must be reduced at the rate of $5 for every $1 000 of residential value in excess of the threshold amount. Late payment penalties may apply to your property taxes if your grant application isn't received before the tax due date. The grant is a form of payment towards your property taxes and it's considered a late payment if you apply late. Despite subsections to (3.1), if the net taxable residential value for school purposes of an eligible land cooperative residence as assessed exceeds the threshold amount, the amount of the grant must be reduced at the rate of $5 for every $1 000 of residential value in excess of the threshold amount.
All home owner and retroactive grant applications must be submitted directly to the Province using their online system at /homeownergrant. If you own multiple properties, you can only claim one as your principal residence and it must be your primary home – where you live and conduct your daily affairs. It is typically the address that you use for your government records (income tax, driver’s licence, etc.). 20 For the purposes of the definition of "applicable amount" in section 1 of the Act, the amount prescribed is 25% of the assessed value of the housing unit that is, or is located in, a housing society building determined at the time the right to occupy the housing unit was acquired. 14 Section 13 applies in relation to an application for a low-income grant supplement that is made in the subsequent tax year as if the application had been made on December 31 of the relevant tax year. Certifies that, if the person with disabilities is not the person claiming the additional grant, the person claiming the grant resides with and is the spouse or a relative of the person with disabilities.
About the home owner grant
This is something for new home buyers to keep in mind when planning out a BC home purchase, especially in Vancouver’s housing marketwhere the average price of a home is well over $1 million. Homes with a price under $500,000 are fully exempt from the BC property transfer tax for first-time buyers, but what about homes over $500,000? There is a small window between $500,000 and $525,000 where first-time home buyers in BC can receive a partial property transfer tax exemption. In the case of a $510,000 home, the first-time buyer’s exemption amount would be $4,920.
Approximately 6 months before the first mandatory payment is due, you will receive a Loan Repayment Notice from BC Housing showing the outstanding balance of your loan and the minimum monthly payment. The home is no longer the purchaser’s principal residence in the first five years. You can also apply by phone using our automated self-serve system or with the help of an agent. If you qualified for the grant last year and didn’t apply, you may be able to claim the grant retroactively for up to one year. You may also be able to apply for a retroactive grant if you qualified last year but didn't apply.
Subject to section 5.1, occupies that residence as the eligible occupant's principal residence. In subsection , "other residence" means a detached house, cottage or other self-contained residential dwelling unit that has cooking, sleeping, bathroom and living room facilities, but does not include a suite or other accommodation in the owner's principal residence. "Structural modifications" means structural changes to the principal residence that are necessary for the person with disabilities to manage normal daily functioning in the principal residence .
The first-time home buyer incentive will take off $6,000, meaning that there will be $0 property transfer tax payable. A veterans supplement is not available in respect of any property for the 2011 tax year or any tax year before 2011. Seek verification of any information given by an applicant or recipient under paragraph or an owner under paragraph , including requesting any additional information or making any inquiries that the grant administrator considers necessary in order to determine eligibility for or entitlement to a supplement. If, before the expiry of the limitation period that applies under subsection to an amount claimed, a person acknowledges liability in respect of the amount claimed, the date of the notice of disentitlement is deemed to be the day on which the acknowledgement is made.
However, if you pay your property taxes through your financial institution, your financial institution will not apply for the home owner grant on your behalf. 12 A qualifying low-income individual who wishes to apply to the grant administrator for a low-income grant supplement for a tax year must do so on or before December 31 of the subsequent tax year. $3 000 for each person in respect of whom the eligible individual or the shared-income partner claimed a deduction under section 118.3 of the Income Tax Act for the previous tax year.
Sections 2 to and 7 to , and section 18.1 as it relates to the program established under subsection of that section. Despite the cancellation, the previously approved grant applied or otherwise dealt with under this Act is deemed to have been applied or otherwise dealt with in relation to the new applicant as if the amount of the previously approved grant were part of an amount of the new grant. "new grant" means the grant in the amount to which the new applicant is entitled. Within 14 days after making a determination under subsection or , the grant administrator must give to the applicant written reasons for the determination. The grant administrator may require an applicant to provide any information or records the grant administrator considers necessary for the purpose of determining entitlement to a grant or the amount of a grant. The condition in subsection or , as the case may be, does not apply if section 2 or operates to eliminate the grant.
There is no need for the agent to provide proof that they have permission from the homeowner to complete the application, however, must identify themselves as the agent by providing their name and contact phone number on the lines provided. This option is limited to the HOG application form only and does not give the person authority to act as the agent for any other matters. The Home Owner Grant must be claimed by the Tax Due Date noted on your Tax Notice to avoid penalty. In the case of a multi dwelling leased parcel in the northern and rural area, section 5 (3.1) of the Act. BC’s definition of a first-time home buyer is more stringent than the definition used for some federal government programs. For example, BC only considers someone to be a first-time home buyer if they have never owned a home at any time.
4 An owner of a land cooperative that contains eligible land cooperative residences is entitled to a grant with respect to that land cooperative in an amount equal to the total of all amounts that the owner is entitled to under subsections to (3.1). You may be able to claim home owner grants on behalf of residents living on your property. The grant is available only to those who are Canadian citizens or permanent residents, who are ordinarily resident in British Columbia, who make their principal residence on your property and who meet the other requirements of the Home Owner Grant Act (the "Act"). If you claim and receive a grant, section 7 of the Act requires that you must pass on the benefit of the grant to the qualifying residents on your property. To be eligible for a grant, the home must be used as the owner’s principal residence. The homeowner grant is automatically calculated on a homeowner’s property tax notice.
To qualify, each residence must have cooking, sleeping, bathroom and living room facilities. If you meet all requirements but your property’s assessed or partitioned value is over $1,975,000, you may qualify for a grant at a reduced amount. If you arebuying or selling your property, ensure you meet all requirements before claiming the home owner grant. Up to $1,045 for homeowners who are 65 years or older, or the homeowner is a person with a disability if the home is in a northern or rural area.
If you own more than one home, you can't designate which one is your principal residence. Your grant amount may be adjusted to ensure the minimum amount of annual taxes are paid. The B.C. Public Service acknowledges the territories of First Nations around B.C.
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