Unlocking Your Dream Home: Incentives and Credits for First-Time Home Buyers in Squamish, BC

Hey, future homeowners!

If you're dreaming of owning your first home in beautiful Squamish, BC, you're in the right place. As a local real estate advisor, I've seen many first-time home buyers navigate this process, and I’m here to share some of the credits and incentives that are available as first time buyers.

1. FIRST- TIME HOME BUYERS’ TAX CREDIT (HBTC) 

One of the most popular incentives is the First-Time Home Buyers’ Tax Credit. This non-refundable tax credit can help reduce your tax burden in the year you purchase your home. For the 2024 tax year, you can claim an amount of $10,000, resulting in a maximum tax rebate of $1,500.

How to qualify:

• You or your partner must be purchasing a home for the first time.

• The home must be in Canada and must be intended to be your principal residence within a year of purchase.

2. HOME BUYERS’ PLAN (HBP)

The Home Buyers' Plan allows you to withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. The best part? You have up to 15 years to repay this amount, interest-free.

How to qualify:

• You must be a first-time home buyer.

• The home must be your principal residence within one year of purchase.

• You must repay the amount withdrawn according to the plan’s repayment schedule.

3. BC PROPERTY TRANSFER TAX (PTT) EXEMPTION

In British Columbia, first-time home buyers can benefit from a full or partial exemption from the Property Transfer Tax. This can be a substantial saving, especially considering the high property values in Squamish. 

How to qualify:

• You must be a Canadian citizen or permanent resident.

• The property must be your principal residence.

• The fair market value of the property must be below $835,000 for a full exemption. This can be a significant benefit to buyers of up to $8,000.

4. BC HOME OWNER GRANT 

The BC Home Owner Grant can help reduce the amount of property taxes you pay. While this grant isn’t exclusively for first-time buyers, it’s definitely worth mentioning because it can ease the financial strain of homeownership.

How to qualify:

• You must be a Canadian citizen or permanent resident.

• The home must be your principal residence.

• The property must meet certain value thresholds to qualify for the grant.

5. NEWLY BUILT HOME EXEMPTION

If you’re considering buying a newly constructed home in Squamish, you may be eligible for the Newly Built Home Exemption may allow you to avoid property transfer tax on a new builds. 

How to qualify:

• The home must be newly constructed and smaller than .5 hectares

• It must be your primary place of residence. 

• Newly built homes with a fair market value below $1,100,000 have an exemption amount the same as the property transfer tax amount. There are specific thresholds and conditions to meet, so it's a good idea to consult with a tax professional to ensure eligibility.

Tips for First-Time Home Buyers in Squamish

1. Get Pre-Approved: Before you start house hunting, get pre-approved for a mortgage. It gives you a clear budget and shows sellers that you're a serious buyer.

2. Work with a Local Agent: Squamish has its own unique market dynamics. A local real estate agent (like me!) can provide valuable insights and help you find the perfect home.

3. Consider Future Growth: Squamish is growing rapidly. Look for properties in areas with strong future potential to maximize your investment. 

4. Budget for Additional Costs: Remember to account for closing costs, moving expenses, and any immediate repairs or renovations.

If you have any questions or need further guidance, feel free to reach out. 778-970-5573 or cass@squamish.com

Happy house hunting!

**The information provided in this blog is for general informational purposes only. Readers are encouraged to conduct their own research and seek professional advice from qualified experts before making any decisions. Every real estate transaction is unique, and what may be applicable in one situation may not be applicable in another. In addition, please note that laws and regulations regarding real estate matters may vary by jurisdiction, and it is your responsibility to ensure compliance with applicable laws and regulations in your area.