First Time Home Buyers
	Step by Step Overview

Mortgage Insurance
One of the reasons that our Canadian Banking system is so strong and safe is that financial institutions are not permitted to lend more that 80% of the true value of a property unless that loan is insured against default. There are several Insurers that provide insurance for those who need to borrow more than the statutory limit. With mortgage insurance backing, a qualified borrower can borrow up to 95% of the true value of the property. The cost of such insurance varies depending on the amount borrowed, but is generally in the 2.80% to 4.00% range and is a one time charge that is added on to the mortgage amount.

B.C. PROPERTY TRANSFER TAX EXEMPTION
The BC Property Transfer Tax is calculated as 1% of the first $200,000, and 2% on the amount thereafter.  To be eligible for the B.C. PTT exemption, you must meet all of the other requirements set out in the First Time Home Buyers Instruction Guide.

• Purchaser must never have owned an interest in a principal residence anywhere in the world at any time;

• Purchaser must be a citizen of or a permanent resident of Canada and have resided in B.C. for at least one year prior to the purchase or have filed two income tax returns as a British Columbia resident within the last 6 years; 

• To obtain full exemption, the purchase price must not exceed $835,000.00. A partial exemption is available for homes between $835,000.00 and $860,000.00 (Please refer to the BC government website). 

• When purchasing a newly constructed home First Time Home Buyers are eligigle for an exemption up to $1,100,000 or less ($750,000 if the title is registered before April 1, 2024)

• Purchaser must move into the property within ninety-two days after registration of the purchase of the property and reside in the property for at least one year; 

Pro rata exemption where property exceeds .5 hectares or a portion of the property is not residential (i.e. commercial lofts) - purchase price of entire property must not exceed the price limitations.

Other exemptions exist as well, such as a transfer of a principal residence between family members. Please remember that the Property Transfer Tax Act may frequently change along with the exemptions for payment of this Tax. While we try to keep our website up to date as much as possible, please do not rely upon the information without talking to a professional.

NOTE: These notes are not intended to replace the guide used by the Provincial Government. Please refer to the official guide for detailed instructions or consult your lawyer, banker or mortgage lender.

The RRSP First Time Home Buyers Plan
(HBP) allows BC first time home buyers to withdraw up to $65,000 per person from an RRSP (Registered Retirement Savings Plan) to buy or build a qualifying home. For a person or persons to qualify for the BC RRSP First Time Home Buyers Plan (HBP), people are considered a BC first time home buyer if you own a rental home or property or if you haven't owned a BC home or property within the past 5 years

First-Time Home Buyers' Tax Credit:
First-time home buyers that acquire a qualifying home after January 27, 2009, can claim a 15% non-refundable tax credit on up to $5,000, for a maximum credit of $750. If a home is purchased jointly, the total credit that may be claimed by all purchasers is $750. The unused portion of the credit can be transferred to a spouse or common-law partner.