Deciding to purchase a house is an exciting decision. Kelowna mortgage broker John Antle knows if you’re thinking of moving or purchasing your first home, there are a few tax benefits and credits for homeowners in Kelowna that you should be aware of. The credits and tax benefits can save you money in the long run if you qualify.
First-time Home Buyers Tax Credit (HBTC)
If you’re purchasing a house for the first time, you may be eligible for the HBTC. This grant isn’t refundable and is an income tax credit for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation.
If you’d like to know how much you may qualify for, you just need to multiply your lowest personal income tax rate for this year by $5000. The maximum credit available is $750.
Property Transfer Tax (PTT) For First Time Home Buyers
If you’re purchasing a house for the first time, you may also be exempt from paying property transfer tax. If you qualify, you may be eligible for a full or partial exemption from this tax. Keep in mind this only applies to Canadian citizens or permanent residents who have lived in BC for 12 consecutive months before purchasing, who have never owned a principal residence anywhere in the world at any time, among other qualifiers. If you’d like to learn more about the first time home buyer’s program, check out the provincial government’s page here.
BC Homeowners Grant
If you’re a homeowner in BC, there is a grant available to you that will “reduce school property taxes by up to $570 on properties with an assessed value up to $1,050,0000” according to Hello Vancity. If your home is worth more than $1,050,000, $5 will be deducted for every $1000 your house is assessed at that is over $1,050,000. However, if your home is valued at over $1,164,000 or over, this grant is not available to you.
Additionally, there is a grant that reduces property tax by a further $275 for a total of $845 for seniors, veterans and the disabled. Again, this is reduced by $5 for every $1000 your home is assessed at that is over $1,050,000. However, there is an exception if your home is valued at over $1,219,000, in which case this grant is not available to you.
Renovation Tax Credit For Seniors and Persons with Disabilities
If you’re a senior (65+) or person with disabilities, you may qualify for a home renovation tax credit. This credit helps with necessary home renovations that make your home more functional or accessible. The government of BC’s site specifies that renovations must be “improving access to the home or land, improving mobility and functions within the home or land, or reducing the risk of harm within the home or land”. Examples of qualifying renovations include installing handrails in corridors, lowering existing counters/cupboards, and installing motion-activated lighting. Aesthetic enhancements, appliances, and even home medical monitoring equipment do not qualify. For an exhaustive list, visit the provincial government’s page on Home Renovation Tax Credit for Seniors and Persons with Disabilities.
If you’re considering purchasing a house and would like to know more about tax benefits and credits you may qualify for, feel free to contact us. We’re a Kelowna Mortgage Broker who provides convenient financing processes with unbiased counsel from reputable and informed mortgage professionals.