Unlocking the Benefits: A Complete Guide to Homebuyer and Homeowner Programs in Canada

January 12, 2025

grants and rebates

Navigating the complex landscape of homeownership can be overwhelming, but Canada offers a range of financial programs and incentives to…

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Navigating the complex landscape of homeownership can be overwhelming, but Canada offers a range of financial programs and incentives to support homebuyers and homeowners. Whether you’re a first-time buyer, a renter, or looking to renovate, here’s a breakdown of key programs and how they can help you achieve your goals.

Programs for First-Time Homebuyers

1. Federal Home Buyers’ Plan (HBP)

Eligible homebuyers can withdraw up to $35,000 from their RRSPs ($70,000 for couples) as a down payment. This amount must be repaid within 15 years.

  • Reusability: This can be used again by those who have repaid their RRSP or experienced a marriage/common-law partnership breakdown.
  • Bonus: This can be combined with the First Home Savings Account (FHSA) for greater savings. Learn more.

2. Federal Tax-Free First Home Savings Account (FHSA)

This program allows first-time buyers to save up to $8,000 annually, with a lifetime maximum of $40,000.

  • Key Benefits: Contributions are tax-deductible, and earnings (capital gains and interest) are tax-free.
  • Compatibility: Can be paired with the HBP for added benefits. Learn more.

3. First-Time Home Buyers’ Program

This provincial program exempts first-time buyers from paying Property Transfer Tax (PTT) on homes priced up to $835,000.

  • PTT Breakdown:
    • 1% on the first $200,000.
    • 2% on the remainder up to $835,000.
  • Phase-Out: Partial exemptions for homes priced between $835,000 and $860,000. Learn more.

Tax Benefits and Rebates

4. GST/HST New Housing Rebate

Homebuyers of newly built homes priced under $350,000 can apply for a 36% GST rebate (maximum refund: $6,300).

  • Partial Rebate: Available for homes priced between $350,000 and $450,000.
  • No Rebate: Homes over $450,000 are not eligible. Learn more.

5. Federal First-Time Home Buyers’ Tax Credit (HBTC)

When filing their income taxes, eligible buyers can claim a $10,000 tax credit. This translates to a rebate of up to $1,500. Learn more.

Programs for New Homebuyers

6. Newly Built Home Exemption

Buyers of newly built homes priced up to $1,100,000 can be exempt from paying PTT, with partial exemptions for homes priced up to $1,150,000.

7. BC New Purpose-Built Rental Buildings Exemption

Buyers of purpose-built rental buildings (minimum 4 units) will be exempt from PTT between January 1, 2025, and December 31, 2030.

  • Requirement: Units must be rented for at least 10 years. Learn more.

Incentives for Renovations and Accessibility

8. Multigenerational Home Renovation Tax Credit

Families adding a secondary unit for a family member can claim a 15% tax credit on renovation costs up to $50,000. Learn more.

9. Home Accessibility Tax Credit

Qualifying homeowners can claim up to $3,000 for renovations that improve accessibility, with a doubled expense limit of $20,000. Learn more.

10. BC Rebate for Accessible Home Adaptations

Eligible households in BC can receive up to $17,500 for home adaptations, provided a household member has a disability or reduced ability. Learn more.

11. Expanded Heat Pump Program

This program offers savings of up to $24,000 for installing energy-efficient heat pumps, helping homeowners reduce energy costs. Learn more.

Property Tax and Affordability Programs

12. BC Home Owner Grant

This grant reduces property taxes for homes with an assessed value up to $2.125 million.

  • Grant Amounts:
    • $570 for basic grants.
    • $845–$1,045 for seniors or homeowners with disabilities in rural areas. Learn more.

13. BC Property Tax Deferment Program

Homeowners can defer property taxes under specific conditions:

  • Seniors: Aged 55+ or financially supporting children under 18.
  • Financial Hardship: Available for low-income homeowners. Learn more.

14. BC Renter’s Tax Credit

Renters earning up to $60,000 annually can claim a tax credit of up to $400. Learn more.

15. BC Electricity Affordability Tax Credit

A one-time credit in 2024 will save households approximately $100 on electricity bills. Learn more.

Other Financial Benefits

16. CMHC Mortgage Loan Insurance Premium Refund

Homebuyers using CMHC mortgage insurance can get up to 25% refunded on premiums if they buy an energy-efficient home or make energy-saving renovations. Learn more.

17. Tax Deductions for Moving for Work

Moving at least 40 km closer to a new job may allow you to deduct costs like movers, temporary housing, or lease termination fees. Learn more.

Conclusion

These programs and incentives offer many opportunities for homebuyers and homeowners to save money and reduce financial barriers. Whether buying your first home, investing in energy-efficient upgrades, or planning renovations, understanding these benefits can help you make informed decisions.

Take advantage of these resources and maximize your investment in your home!

Darius Dominczak, leader of the YVR Real Estate Group, brings 30+ years of expertise to Greater Vancouver’s residential market. Known for his results-driven mindset, he and his team deliver personalized service and innovative marketing, ensuring a seamless, stress-free real estate experience for every client.