When a property changes hands in British Columbia the provincial government levies a tax (the Property Transfer Tax). All buyers of real estate in Vancouver must pay the Property Transfer Tax when they make their purchase. However, there is an exception to this tax and that is for the first-time home buyer.
To qualify for the exemption, there are requirements for first-time home buyers. I wrote about these requirements in my blog last year. Since that time, there were changes made to the First-Time Home Buyers program in the 2008 provincial budget.
The increase in the threshold for first-time buyers to qualify for the program was garnered the majority of the attention. This amount was raised from $375,000 to $425,000. What was lost in the shuffle was that they did away with any of the financing requirements.
“If a property purchase is registered on, or after, February 20, 2008, the purchaser is no longer required to meet any financing requirements to qualify for the FTHB program.
If a property purchase is registered before February 20, 2008, the purchaser must meet the financing requirements that were in place when he or she purchased the property. However, effective February 20, 2008, all purchasers (including persons who purchased their property before February 20, 2008) are free to pay down any amount owing on their mortgage. For details, please see the section below, Requirements that Must be Met During the First Year the Property is Owned.”
The preceding information on the First time home buyers’ program was taken from the this provincial government document.
What this means is that first-time home buyers are no longer required to put less than 30% down when they make their purchase. They are also no longer limited to paying a maximum of $13,000 down in the first year. First-time buyers are no longer being punished for saving their money.
Amazingly, most people are still not aware of this information. Despite the rules having changed over one year ago (in February, 2008) many buyers, realtors and lawyers are still operating under the old set of rules. If you are a first-time home buyer, you need to make sure that you are working with a realtor that understands the unique situation you are in. A realtor that has the experience and knowledge to get you the best possible deal on the home that you really want.
More Info for Vancouver First Time Home Buyers
Are you a first time home buyer? Finding it hard to get the information that you need to make an informed decision in today’s real estate market? You’ll find the resources that you need tailored for you, the Vancouver First Time Home Buyer here.
Give me a call, or email me if you have further questions…or if you’d like let me help you begin your search.
Copyright © 2009 Vancouver First Time Buyers in the Vancouver Real Estate Blog by Sebastian Albrecht, Vancouver Realtor with Royal LePage Westside ”First-Time Home Buyers With Large Downpayments No Longer Punished”
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