BURNABY – British Columbia families buying a new home may take advantage of new housing relief measures that take effect on April 1, 2012.
“It’s hard for young families to get ahead,” said Premier Christy Clark. “We’re helping them to do that by making the cost of new homes a little bit more affordable for young families just getting started, while at the same time protecting and creating stable jobs in the home construction industry.”
Newly built homes purchased as a primary residence are eligible for a provincial rebate of 71.43 per cent of the provincial portion of the HST to a maximum amount. For new homes where the HST becomes payable on or after April 1, 2012, the maximum rebate amount will increase to $ 42,500. Before April 1, 2012, the maximum rebate amount was $ 26,250.
First-time homebuyers of newly built homes may also be eligible to receive the B.C. First-Time New Home Buyers’ Bonus of up to $ 10,000.
“The $ 10,000 bonus for first time homebuyers will enable those buying their first home to make that giant step,” said Doug Wittal, president of the Canadian Home Builder’s Association of B.C. and Kamloops builder. “Each new home built because of this bonus will create 3.8 person-years of employment and over $ 60,000 in spinoff spending, a true economic booster.”
In addition, purchasers of newly constructed secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts may be eligible to claim a provincial grant of up to $ 42,500. The HST does not apply to resale housing.
The Province also announced the transition rules for returning to the PST. These can be found at the following website: http://www.pstinbc.ca/media/2012_housing_rules_FEB.pdf
- Raising the B.C. HST rebate threshold to $ 850,000 is expected to save purchasers about $ 60 million in 2012-13. The maximum rebate amount rises to $ 42,500 from $ 26,250, a 60 per cent increase.
- More than 90 per cent of newly built homes sold in B.C. are below the new higher rebate threshold.
- Provincial HST paid by purchasers on an $ 850,000 newly built home after the increase in the maximum HST rebate: two per cent.
- The increase in the new housing rebate threshold will be administered by the Canada Revenue Agency on behalf of B.C. The Province is administering the grant for new secondary vacation and recreational homes.
For more information about these measures:
- Visit: www.pstinbc.ca
- For B.C. tax questions, call 1 877 388-4440