First Time Buyers Bonus

BC First-time new home buyers bonus

This is a one time payment worth up to $10,000 for BC residents who are first time home buyers and who purchase an eligible new home.

Definition of BC resident

  • filed a 2011 BC residential personal income tax return
  • you file a 2012 BC resident personal income tax return
  • moved to BC after Dec 31, 2011

– not eligible for the bonus if you moved to BC after Dec 31, 201

Definition of a first time home buyer
  • an individual who has never previously owned a primary residence (where you live) anywhere in the world. If there are multiple buyers, each must be a first time home buyer.

Definition of eligible new home

  • new homes purchased from a builder and are owner-built
  • contract of purchase and sale is entered into on or after Feb 21st, 2012
  • HST is payable on the home
  • no one else can claim a bonus in respect of the home
  • construction of the home is complete, or the home is occupied, before April 1st, 2013

How much is the bonus?

5% of the purchase price up to $10,000

ex… If the place you are looking to buy is $150,000 (obviously not in the Lower Mainland) you would receive ($150,000 * .05%) $7,500. If the place you were looking to buy was $450,000 you would receive ($450,000 * .05%) = $10,000 b/c the bonus pays up to $10,000 and not a penny higher.

The bonus is reduced if your income is too high.

  • For individuals, bonus is reduced by $.2 for every $ in net income over $150,000 (bonus is reduced to zero at $200,000 net income)
  • For Couples, bonus is reduced by $.1 for every $ in family new income over $150,0000 (bonus is reduced to zero at $250,000 family new income)

The Bonus is not taxable. It is a check written by the Government and given to you to do what you please with it.

For more information click the link below. It will take you to the Government page which provides more information about the Bonus, or contact me at 604 561 6716 or by email at [email protected]. I would be more than happy to talk with you and see if you are eligible for the bonus.

Thanks and have a great day.