First time home buyer? What can you expect?

Buying a home can be overwhelming… there are so many terms and expressions that you may not have heard before. That is why you need a team to help you throughout the process… A realtor, a mortgage broker and a lawyer/notary

Find homes under $500,000 ....click here Quick Search

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Need a mortgage broker?  

Contact Debbie Twitchell & Patti Wheatley of the Mortgage Group

https://www.dtwitchell.com/
https://pattiwheatley.com/

For the lastest rates click here Mortgage Rates

Property taxes are paid yearly to your municipal or rural tax office. (You will be able to claim a Homeowners Grant of $570 every year as long as you live in the home)

Did you know – When you purchase a home you are responsible for a property transfer tax? This tax should not be confused with annual property taxes.

Property transfer tax – is paid when you acquire an interest in real estate. There is an exemption available for First time homebuyers if….

Property transfer tax exemption for BC First Time Homebuyers

• Property purchase price must be $500,000 or less for a full exemption.
• Between $500,000 and $525,000 there is partial exemption
• You must be a Canadian resident that has lived in BC for at least 1 year
• You must never have owned a property that was your principal residence anywhere in the world
• You must never have received a First-Time homebuyer exemption or refund

If your purchase price is over $525,000, you need to budget for a hefty tax bill.

• 1% of the first $200,000
•  2% of the rest, up to $2,000,000
•  3% of the value over $3,000,000
•  Example - $600,000 purchase – equals a transfer tax of $10,000

Did you know - while saving up for your down payment, you can put your money in your RRSP, this reduces your taxable income for the year of deposit and can produce a tax refund. Your savings will grow tax free, and you can borrow from your RRSP for your down payment.

First Time Homebuyers Plan 

• Allows you to withdraw up to $35,000 from your RRSP’s as a tax-free loan
• You then have 15 years to repay the loan. You repay it back to your RRSP account.
• You are considered a First-time homebuyer if in the last 4 years you have not lived in a home owned by you or your current spouse/common law partner.

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