New Home Buyer Bonus – $10,000

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New Home Buyer Bonus – $10,000

The government of BC recently announced its intention to implement a home buyer bonus of a one-time refundable personal income tax credit worth up to $10,000. This bonus is an incentive to offset the HST costs of buying a new home. Below are some details of this bonus.

  • Purchasers have to enter into a written agreement to purchase a property after Feb 21, 2012
  • The purchase must complete by March 31, 2013.
  • There must be HST payable on the home.
  • The bonus is only valid if no one else has claimed the bonus on the home.
  • The bonus is also in effect for owner built homes as well.
  • If you substantially renovate your home (90% or more) then you may also qualify for the bonus.

The bonus is equal to 5% of the cost of the home up to a maximum of $10,000.  The bonus is also reduced for high income earners. Applications have to go through the government of BC to apply for the bonus.

For further information on this tax credit we suggest you contact your accountant or the Ministry of Finance for the Province of BC at 1-877-387-3332.

Important Reminder Regarding Your Mortgage Renewal

If your mortgage is up for renewal and you are being contacted by your lender to early renew before the maturity date please call or email us before signing the renewal. We are able to give you a quick recap of rates in the market to make sure you aren’t signing for a rate/term that isn’t beneficial for you. Often times your lender will tell you that you only have a very limited time to sign the renewal to pressure you into taking the rate they want. Get in touch with us for a quick 2nd opinion!

If you require any further information regarding this article or any other mortgage matters please contact our office at 604‐556‐3893. Also, as a reminder to anyone looking for a mortgage, we offer 4 month pre-approvals at no cost to you. This means that you can get a rate hold for up to 4 months to protect yourself in case rates rise.

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About the Author:

Alex Kotai
Alex Kotai has worked in the mortgage lending business for over 10 years. His career started at HSBC Bank Canada where he spent most of his time in senior management roles which involved training and managing the sales staff at his branch. After leaving HSBC, Alex decided to open his own mortgage brokerage firm, Your Mortgage Source. Through his company, Alex has access to many lenders across the country with a very expansive list of products.