Grants and Rebates list
March 12, 2014 | Posted by: Patrick Mulhern
Top grants and rebates for property buyers and owners
- 1. HOME BUYERS' PLAN:
Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time. For more information: www.cra.gc.ca Enter 'Home Buyers' Plan' in the search box.
- 2. GST REBATE:
If the Purchaser (or a certain related family member) is planning to reside in the new home as their primary place of residence, they may be eligible for a G.S.T. New Housing Rebate. This rebate equals 36% of the G.S.T., but only applies for homes under a certain price point.
Assume the purchase price of a new home is $350,000 excluding G.S.T. The gross G.S.T. is $17,500 (5% of $350,000). The G.S.T. New Housing Rebate is 36% of $17,500, which is $6,300. Thus, the applicable G.S.T. is $17,500 less $6,300, which equals $11,200.
The full G.S.T. New Housing Rebate is available for new homes priced up to $350,000. There is no G.S.T. New Housing Rebate on homes valued at over $450,000.00 so the full 5% will be paid.
For homes valued between $350,000.00 and $450,000.00, the rebate is gradually reduced and is calculated by using the following formula (get ready to brush up on your high school math):
$6,300 x [$450,000 - the purchase price] / $100,000
For example, assume the purchase price of a new home is $400,000 excluding G.S.T. The G.S.T. New Housing Rebate is
$6,300 x [$450,000 - $400,000.00] / $100,000
which equals $3,150. The gross G.S.T. would be 5% of $400,000.00, which equals $20,000.00, less the partial G.S.T. New Housing Rebate of $3,150.00, for a net tax of $16,850.00.
Please note that the Developer may agree in the Contract to credit the Purchaser on completion for the rebate, but not all Developers allow this. If they do not, the Purchaser will have to pay the full 5% G.S.T. on completion and will then have to apply directly to C.R.A. for the G.S.T. New Housing Rebate after closing. This means the Purchaser will have to ensure that they have additional funds to cover the 5% G.S.T. on completion. Note the G.S.T. New Housing Rebate is not available to a corporation or a partnership.
Are there any rental rebates?
If a Purchaser is planning to rent out the new home, they may be eligible for a G.S.T. New Residential Rental Rebate (“G.S.T. NRR Rebate”).
Like the G.S.T. New Housing Rebate, the full G.S.T. NRR Rebate is only available on new homes priced up to $350,000. A partial G.S.T. NRR Rebate is available for homes priced between $350,000 and $450,000. The actual rebate calculations are identical to rebate calculations for the G.S.T. New Housing Rebate.
To be eligible for the G.S.T. NRR Rebate, the Purchaser must meet certain conditions which include:
- The Purchaser must not be entitled to claim input tax credits in respect of any part of the tax payable on the acquisition of the rental unit.
- the rental unit must be a “qualifying residential unit” which means the person applying for the rebate must be the owner of the unit and the unit must be a self-contained residence as defined in the Excise Tax Act;
- the unit must be held by the owner for the purpose of making exempt supplies (for example, a residential tenancy);
- The unit must be used as a primary place of residence by the tenants and must be so used for at least one year and the Purchaser will have to provide a copy of the tenancy agreement showing a term of at least one year.
Please note that the Developer is not allowed to credit the Purchaser on completion with the G.S.T. NRR Rebate. This means the Purchaser will have to pay the full 5% G.S.T. on completion and then claim the G.S.T. NRR Rebate afterwards directly from C.R.A.. The Purchaser will have to ensure that they have the necessary funds to cover the 5% G.S.T. on completion.
What is the Transition Tax?
Where the purchase of a new home is between April 1, 2013 and April 1, 2015, AND the property is at least 10% constructed as at April 1, 2013, Purchasers will pay a temporary transitional provincial tax of 2% on the full purchase price. This tax will not apply if the closing is after March 31, 2015 OR if the construction is not 10% complete as at April 1, 2013. There are no rebates for this tax.
- 3. BC PROPERTY TRANSFER TAX (PTT) FIRST TIME HOME BUYERS' PROGRAM:
Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $475,000. You may qualify for a partial exception for homes priced up to $500,000. For more information:
- 4. FIRST-TIME HOME BUYERS' TAX CREDIT (HBTC):
This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. The calculation: multiply the lowest personal income tax rate for the year (15% in 2010) x $5,000. For the 2010 tax year, the maximum credit is $750. For more information: http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html
- 5. BC HOME OWNER GRANT:
Reduces property taxes by up to $570 on properties with an assessed value up to $1,100,000. You may qualify for a reduced grant amount if your property value is more than $1,100,000. The grant amount is reduced by $5 for every $1,000 your property value is over $1,100,000. If your property value is $1,214,000 ($1,254,000 in a northern and rural area) or more the grant amount will be reduced to $0.
The basic grant gives home owners:
- a maximum reduction of $570 in property taxes on principal residences in the Capital, Greater Vancouver and Fraser Valley regional districts;
- an additional grant of $200 to rural homeowners elsewhere in the province; and
- an additional grant of $275 to seniors aged 65+, those who are permanently disabled and war veterans of certain wars.
Please visit www.rev.gov.bc.ca/hog for more information.
- 6. BC PROPERTY TAX DEFERMENT PROGRAMS:
Property Tax Deferment Program for seniors. Qualifying home owners aged 55+ may be eligible to defer property taxes. Financial Hardship Property Tax Deferment Program. Qualifying low-income home owners may be eligible to defer property taxes. Families with Children Tax Deferment Program is a low interest loan program that allows you to defer paying all or part of your property taxes on your principal residence if you are financially supporting a child under certain circumstances: http://www2.gov.bc.ca/en/index.page and enter 'Property tax deferment' in the search box or contact your municipal tax office.
7. CMHC-ELIGIBLE ENERGY-EFFICIENT BUILDING PROGRAMS:
CMHC encourages the development of more energy-efficient homes by making eligible a broader range of home building programs. Homes built under the following programs qualify for a 10 per cent mortgage loan insurance premium refund and a premium refund for a longer amortization period (if applicable) when CMHC Mortgage Loan Insurance is used to finance their purchase or construction.
- ENERGY STAR (National)
- R-2000 (National)
- LEED Canada For Homes EGH 82*+ (National)
- Power Smart New Homes (British Columbia)
- Built Green™ BC Platinum Label Homes (British Columbia)
(Note: Gold, Silver and Bronze label homes are only eligible if they receive an EnerGuide evaluation indicating they meet CMHC’s minimum score of 82*)
- 8. CMHC- MORTGAGE LOAN INSURANCE PREMIUM REFUND FOR GREEN HOME PORGRAM:
A 10% CMHC mortgage loan insurance premium refund, and a premium refund for a longer amortization period (if applicable) may be available when you use CMHC insured financing to purchase an energy-efficient home or make energy-saving renovations.
Visit http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_008.cfm for more information.
- 9. BC HYDRO APPLIANCE REBATES:
Check back when the program returns in spring 2014. If you have an old fridge to recycle, find out where to recycle it in your area through the Recycling Council of British Columbia.
- BC HYDRO APPLIANCE REBATE PROGRAM:
Check back in 2014 for new appliance offers or apply for a rebate on purchases made on or before October 31, 2013.
For more information: https://www.bchydro.com/powersmart/residential/rebates_savings.html
- 11. FORTIS BC FIREPLACE REPLACEMENT:
Add some warmth to the ambience
Purchase an EnerChoice fireplace between January 1, 2014 and December 31, 2014 and you may qualify for a $300 rebate from FortisBC.
What is an EnerChoice fireplace?
All fireplaces sold in Canada have an EnerGuide™ label that tells you how energy efficient it is. There is no ENERGY STAR® rating for fireplaces, so in BC, manufacturers developed the EnerChoice designation to identify the most efficient models.
When shopping for a new fireplace, look for this logo. It means that the model is among the top 25 percentile of efficiency.
To qualify for EnerChoice status hearths must have minimum efficiency ratings of:
- 62.4% or higher for fireplaces
- 61% or higher for inserts
- 66% or higher for free-standing stoves
- 12. FORTIS BC HOT WATER TANK REBATE:
Replace your aging water heater with a qualifying natural gas ENERGY STAR model and you could save on energy costs, plus you’ll be eligible for a rebate of up to $1,000.
Water heater type
0.67 - 0.69 EF
0.82 - 0.89 EF
0.90 - 0.99 EF
90 - 99% TE
Condensing storage tank
90 - 99% TE /.80 EF**
- FORTIS BC – JUST ADD WATER AND SAVE:
Get a $1,000 rebate* when you switch your oil or propane heating system to natural gas and install an ENERGY STAR® high-efficiency** heating system.
Then add an ENERGY STAR water heater and you could receive up to an additional $1,000 rebate.
- City of Vancouver- RAIN BARREL SUBSIDY PROGRAM:
Conserve water - use a rain barrel
Make rain a resource! Rain water collection is a brilliant way to give your lawn and garden chlorine-free liquid sunshine. A rain barrel allows you to store rain, and use it as needed to take care of your lawn, helping keep a useful resource from running down the storm drain.
The City of Vancouver sells rain barrels for half the regular price. The City subsidizes the other half.
A rain barrel:
- Measures 107 cm high x 54 cm wide.
- Holds 341 L of water.
- Weighs 20.5 kg when empty.
The City has also a limited time offer on short rain barrels for smaller yards.
- Limited time offer: short rain barrel for small spaces
How a rain barrel works
The City sells rain barrels made of recycled plastic. Barrels are designed with a flat side, so that the barrel will sit flush against a wall. Additional features are:
- Overflow to storm drain
- Childproof opening
- Garden hose connection
- Faucet (for filling watering cans)
- Screen (to keep debris out)
Important: Rainwater is not for human consumption. Collected rainwater is suitable for plants and grass only.
Rain barrel price
$75 (plus taxes)
Buy a rain barrel
Pay for and pick up your rain barrel at the Vancouver South Transfer Station at 377 West Kent Avenue North.
- Bring your driver’s license, or a utility bill that shows your address.
- Bring cash, a debit card, cheque, or credit card.
- Approach the transfer station from the east on Kent Avenue. Left turns are not allowed if you come from the west. Use the weigh scales line up.
There is a limit of two rain barrels per household.
- Get directions to the transfer station
- Get details on your payment options
Visit http://vancouver.ca/home-property-development/rain-barrels.aspx for more information
The rain barrels can be purchased from:
377 W. North Kent Ave.
- Please bring proof of residency.
- Limit of two rain barrels per household.