As a renter in Victoria, it’s your dream to one day purchase your very own house or condo. No more writing rent checks and dealing with landlords—when you own a home, all of the time and money you put in is directly benefitting YOUR house, not somebody else's.
Fortunately, you can never go wrong buying a home in Victoria. First of all, we live on an island—there’s a limited supply of land, and demand is only going to increase (which means the value of your home will, too). Second, buying your first home may actually be a lot easier than you’d think, as long as you can set achievable goals, do some basic research, and take advantage of the opportunities available to you right now.
For first-time homebuyers, the government of B.C. offers three incredible perks to help you purchase your first home.
1. With the Home Owner Mortgage and Equity (HOME) partnership launched in January of this year, first-time homebuyers are able to receive a down payment loan for 5% of the purchase price, or up to $37,500. This loan is interest-free, backed by the B.C. Government, and you can take as long as 25 years to pay off the loan. And in case that’s not enough, your first payment isn’t due for five years!
2. There’s also the First Time Home Buyers program, which exempts first-time homebuyers from paying the property transfer tax on homes valued $500,000 or less. This means that, if you’re a first-time homebuyer purchasing a home for $475,000 (before taxes and fees), this program would exempt you from paying the $7,500 in taxes that you would otherwise owe if this weren’t your first home purchase.
3. If you’re looking to purchase a home valued more than $500,000, you could also benefit from the Newly Built Home Exemption as long as the home you’re purchasing is newly constructed. The property value for this exemption maxes out at $750,000, and utilizing it could save you from having to pay $13,000 in property transfer tax on a home of that value.
These perks are designed to make purchasing your first home in B.C. a far less daunting process. If you're a potential first-time homebuyer and would like to find out more information about how you could qualify for these fantastic perks, feel free to contact Ray or Rob for more information.