Buying your first home is be one of the biggest decisions you ever make. It can be scary.
But with Kim’s help this can be both exciting and fun. Here are some of the things you will need to know.

 

What is a First Time Homeowner?

 

You can qualify as a first time homeowner as long as you have not owned directly or indirectly (paid a mortgage on) a home that has been used as your main residence within the last five years.

 

If you purchased a home and then flipped or assigned it before it closed, you are still eligible as a first time homeowner.

 

Can I use my RRSP’s to make a deposit?

 

Yes! A first time homebuyer can withdraw up to $20,000 (or $40,000 per couple) tax free from their RRSP accounts as down payment or for closing costs as long as the funds you withdraw have been invested into the RRSP for a minimum of 90 days prior to withdrawal.

 

The amount you’ve withdrawn needs to be replenished within a 15 year period.

 

Property Transfer Tax

 

As a first time homeowner you will be exempt from paying Property Transfer Tax – following a few conditions:

 

• You are a Canadian citizen and you have lived in BC for a minimum of 12 months.
• The purchase price of your new home, including GST must be less than $425,000 with a partial exemption for properties

up to $450,000.
• You cannot have owned an interest in a principal residence anywhere in the world.
• Must occupy the property within 92 days from the date of registration of transfer in the Land Titles Office.
• Must occupy home as a principal residence for at least one year from date of transfer.

 

Click here for the lastest issuse of the "Informed Buyer/Seller"