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On February 21, 2012, the BC Provincial Government announced an exciting temporary bonus for first-time homebuyers who purchase a newly constructed home, effective February 21, 2012 through to March 31, 2013.
This bonus is calculated as 5% of the purchase price of a new home (condominiums are eligible as well) up to a maximum of $10,000! This bonus from the government is tax-free.
So what does this actually mean for first-time homebuyers? Let’s do some math:
Assuming you meet all of the applicable criteria and your annual net income is less than $150,000: If you purchase any suite in BC you will receive a $10,000 tax-free cheque from the government*.
You should keep in mind that if you qualify for this new Bonus you would also qualify for the existing New Housing Rebate. Click here to download and read more about the Enhanced New Housing Rebate.
Some fine print – Only one credit can be claimed per home and the credit will be reduced for high-income individuals and families earning over $150,000 net. Click here for full details. It should also be noted that this bonus has not been approved by the legislature yet, but the government is anticipating approval sometime this spring. The bonus would be retroactive to all purchases from February 21, 2012 and remain through to March 31, 2013. To qualify for the bonus you must make your new purchase your primary residence and you can’t have previously owned a primary residence before.