Property Purchase Tax Exemption Ceiling Raised to $425,000

February 2008

To qualify for the FTHB exemption, the transferee (purchaser) must be all of the following:

􀂃 a Canadian citizen or a permanent resident as determined by Immigration Canada,
􀂃 a person who has resided in British Columbia for 12 consecutive months immediately prior to the date of registration of the transfer, or who has filed two income tax returns as a British Columbia resident within the last six years,
􀂃 a person who has never, at any time, held interest in a principal residence anywhere in the world (a principal residence is defined as the usual place where an individual resides), and
􀂃 a person who has not previously received an FTHB exemption or refund

- A partial exemption is available for purchases from $425,000 to $450,000

Highlights of the Canadian Budget January 27/09

-a $5000 increase to the RRSP Home Buyers Plan, meaning first-time home buyers could withdraw up to $25,000 from their RRSP for a down payment tax and interest free.
-a $750 tax credit for first time home buyers to help with closing costs, such as legal fees, disbursements, and land transfer taxes
-a 15% tax credit of up to $1350 on eligible home renovation expenses undertaken before February 1, 2010.
-a $300 million for ecoENERGY Retrofit grants
-up to $50 billion worth of additional mortgage buybacks. The government called this a "successsful program" that "will reassure lenders that stable long-ter, financing will continue to be available..." More
"disclosures" for mortgage insurance designed to "help consumers better understand the mortgage insurance transaction. The Government will also propose new measures to ensure that Canadian consumers are charged no more for mortgage insurance than the true cost of obtaining that insurance."

The BC Government is raising the Threshold for the New Housing Rebate on the HST

New homes will be eligible for a tax rebate when B.C. adopts the HST next year. (CBC) the B.C. Government is raising the maximum value for new homes that will get a rebate on the provincial portion of the coming HST.

Under the proposed changes the threshold for the new housing rebate on the harmonized sales tax will increase to $525,000 from $400,000.

The decision means home buyers will receive a rebate of 71 per cent of the provincial portion of the HST paid on a new home, up to a maximum of $26,250.

New Home Buyer Tax Credit

What is this credit?

The Federal Budget 2009 proposed a tax credit for First Time Home Buyers as an action to provide support for Home Ownership. This proposal was thought to assist first-time home buyers with the costs associated with the purchase of a home (i.e. legal fees, disbursements and land transfer taxes).

For 2009 and subsequent years, the budget proposes to introduce a new non-refundable income tax credit, based on the amount of $5000 for first time home buyers who plan to purchase after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax
relief starting in 2009.

How is the new HBTC calculated?

It is calculated based by multiplying the lower personal income tax rate for the year (15% in 2009) by $5000. So that means, for 2009, the credit will be $750.

Who qualifies for the HBTC?

The individual must meet the below criteria:

# They acquire a qualifying home.
# Neither the individual or spouse/common-law partner has owned and lived in another home in the year of purchase or any of the 4 preceding years.
# A person with a disability or are buying a house for a related person with a disability, you DO NOT have to be a first time home buyer. The home must enable the person with a disability to live in a more accessible dwelling.

The Tax Deductible Mortgage Plan

TDMP is for highly qualified Canadian Homeowners only. You must have a minimum of 20% equity in your home, verifiable income and excellent credit to consider this strategy. In addition to qualifying for the mortgage, net worth & liquidity tests may apply.

http://www.tdmp.com/index.php/MB2300
Qualification Guidelines:

Minimum 20% Equity in Home
Show Verifiable Income
Have Excellent Credit Rating
Meet Net Worth & Liquidity Tests