“How will I ever afford to buy a home in Vancouver?!!”
Taking that first leap into home ownership can be a daunting prospect in a market of near record highs. Tempered only by historically low interest rates, likely nowhere is the conversion of renter to homeowner more challenging than right here on the West Coast.
But thanks to new legislation recently passed in Victoria, the horizon is looking a little brighter for first time new homebuyers in B.C.
The B.C. First Time New Home Buyers’ Bonus is a one-time bonus payment of up to $10,000 for 1st time buyers of new homes in the province. Here are some of the qualifications needed to convert yourself from renter to owner!:
- You cannot have owned a primary residence anywhere in the world.
- You must file a 2011 Income Tax return (if moved here anytime during 2012, then a 2012 BC resident personal income tax return).
- You must intend to live in the home as their primary residence.
- The construction must be complete or the home occupied by April 1st of next year.
The bonus ends March 31, 2013, when harmonized sales tax is replaced by the GST.
$10,000 may not seem like much in Canada’s priciest back yard. But consider this: A condo purchase at $400,000 with ten percent ($40,000) down. That $10,000, then, actually represents 25% of the down payment, a significant amount. Combined with our historically low interest rates, mortgage payments and strata fees would come in at around $2,000/month. It begs the question, “How much rent are you paying now?”