The Mike and Will Team (www.mikeandwill.com) : Government Incentives

There are actually 20 grants and rebates for Vancouver property buyers and sellers.

1. Home Buyers' Plan

Home buyers can withdraw up to $25,000 (for couples it's $50,000) from their RRSP's for a downpayment. Homebuyers who have repaid their RRSP may be eligible to use the program a second time. View the Government's website and enter "home buyers plan' in the search box

2. GST Rebate on New Homes

New home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for the new homes costing between $350,000 and $450,000. View the Government's website and enter 'RC4028' in the search box.

3. BC New Housing Rebate (HST)

Buyers of new or substantially renovated homes priced up to $525,000 are eligible for a rebate of 71.43% of the provincial portion (7% of the 12% HST) paid to a maximum rebate of $26,250. Homes priced at $525,000 + are eligible for a flat rebate of $26,250. View the Government's website

4. BC New Rental Housing Rebate (HST)

Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250 per unit. View the website

5. Property Transfer Tax (PTT) First Time Home Buyer's 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 th epurchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000.

6. First time Home Buyers Tax Credit (HBTC)

This is a non refundable income tax credit for qualifying buyers of detached, attached and apartment condominiums , mobile homes or shares on a co-operative housing corporation. It's calculated by multiplying the lowest personal income tax rate for the year (15% oin 2009) by $5,000 . For 2009, the maximum credit was $750. Federal tax credit.

7. BC Home Owner Grant

Reduces school property taxes by up to $570 on properties with an assessed value up to $1,050,000. For 2010, the basic grant is reduced by $5 for each $1,000 of value over $1,050,000 and eliminated on homes assessed at $1,164,000+. An additional grant reduces property tax by a further $275 for a total of $845 for seniors, veterans and the disabled. This is reduced by $5 for each $1,000 of assessed value over $1,050,000 and eleiminated on homes assessed at $1,219,000+.

8. 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. Property Tax Deferment Program for Families with Children - qualifying low income home owners who financially support children under age 18 may be eligible to defer property taxes.

9. Canada Mortgage & Housing (CMHC) Residential Rehabilitation Assistance Program (RAP) Grants

The federal program provides financial aid to qualifying low income home owners to repair substandard housing. Eligible repairs include heating, structural, electrical, plumbing and fire safety. Grants are available for seniors, persons with disabilities, owners of rental properties and for the creaton of secondary and garden suites.

10. CMHC Mortgage Loan Insurance Premium Refund

Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient home or make energy savings renovations.

11. LiveSmart BC: Efficiencty Incentive Program

Home owners improving the energy efficiency of their homes who hire a certified energy advisor may qualify for cash incentives through this provincial program provided in partnership with Tersan Gas, BC Hydro and FortisBC.

12. BC Residential Energy Credit

Home owners and residential landlords buying heating fuel receive a BC government point of sale rebate on utility bills equal to the provincial component of the HST.

13. BC Hydro Appliance Rebates

Mail in rebates of $25-50 for purchasers of ENERGY STAR clothes washers, refrigerators, dishwashers or freezers between June l, 2010 and March 31, 2011 , or when funding for the program exhausted

14. BC Hydro Fridge Buy Back Program

This ongoing program rebates BC Hydro customers $30 to turn in spare fridges measureing 10-24 cubic feet in working condition.

15. BC Hydro Mail in Rebates/Savings Coupons

To save energy, BC Hydro offers rebates including 10% off an ENERGY STAR cordless phone, 50% off an E2 dualflush toilet, $15 off a clothes drying rack and 50% off Earth Massage shower heads. Check for deadlines.

These items can be found on BC Hydro's website.

16. Tersan Gas Rebate Program

A range of rebates for home owners include a $25 gift cards for furnace servicing: $50 rebates for upgrading a water heater, $150 rebate on an EnerChoice fireplace $1,000 rebate for switching to natural gas and installing an ENERGY STAR heating system

17. SolarBC Incentives

Contractors will provide home owners buying a solar hot water system with a $2,000 discount at the point of sale until Dec 31, 20110.

18. City of Vancouver Solar Homes Pilot

Offers $3,500 (about 50% of the cost) towards the cost of a solar hot water system for anyone building new homes in Vancouver. Offered by the City of Vancouver, SolarBC, Terasen Gas and Offsetters to 50 new homes on a first come, first served basis. January 2010 to March 2011 with building permits issued in 2010.

19. RBC Energy Saver Mortgage

Home owners who have a home energy efficient audit within 90 days of receiving an RBC Energy Saver Mortgage may qualify for a $300 rebate credited to their RBC account

20. Vancity Green Building Grant

In partnership with the Real Estate Foundation of BC, Vancity provides grants up to $50,000 each to qualifying charities, not for profit organizations and co-operatives for building renovations/retrofits, regulatory changes that advance green building development, and education to increase the use of practical green building strategies.

There are several useful incentives that the government offers to make purchasing a home more affordable. Understanding the fine print in what you are eligible for and how to apply can be overwhelming. The Mike and Will team is very well versed in these programs and can advise you as to what to take advantage of and how to go about doing so.

Using RRSP Savings for Down Payments

Canada Revenue Agency’s Home Buyers Plan lets qualifying home buyers use up to $25,000 of their Registered Retirement Savings Plan to buy a home. The home must be a principal residence, the home buyers must not have owned a home within the past five years and the loan must be repaid with 15 years. Home buyers who have already used the plan and have fully repaid their RRSP may be eligible to use the plan a second time. Talk to your lender for more information.

Mortgage Brokers notes:

The most efficient way to pay the RRSPs back is to pay off the recommended minimum payments and not exceed them

This recommended re-payment plan is to repay at a rate of 1/15th/yr

Ex: $25,000 ÷ 15yrs = $1,666.66/yr annual payment.

Do to the new FINTRAC regulations the funds used must be in your RRSP account for a minimum of 90 days.

Property Transfer Tax Exemption

To qualify for a FULL exemption to the Property Transfer Tax as a First Time Home Buyer, the following criteria must be met:

· You have never owned an interest in a principal residence anywhere in the world at any time. **

· Purchaser must be a citizen of or a resident of Canada and have resided in B.C for at least one year prior to the purchase.

· To obtain a full exemption, the purchase price must not exceed $425,000. There are partial exemptions between $425,000 & $450,000.

· Purchaser of the property must reside and utilize the property as their principal residence for at least one year.

For more information on Property Transfer Tax please visit this link

**B.C lenders recognise this as meaning (Purchaser must have not owned any interest in a principal residence anywhere in Canada at any time in the past 5 years)

Basic Home Owners Grant

The basic grant can reduce your property tax by as much as $570 on properties assessed up to $1,050,000 & continues on a sliding scale up to $1,164,000. The tax ensures that all homeowners contribute towards the funding of local services such as road maintenance and police protection.

For further information please call the Government (small business & revenue Dep) toll-free direct at 1-888-355-2700.

To be eligible for the grant, you must meet the following criteria:

· You are a Canadian citizen or landed immigrant and ordinarily reside in British Columbia

· You are the registered owner or eligible occupant of the home. The home must be located within the province.

· The home is your primary residence – where you live and conduct your daily activities. The grant does not apply to summer cottages, second homes or rental properties.

· Spouses who live together, including those who are married or who live together in a marriage-like relationship, including same-gender partners, can qualify for a grant on only one residence in the province in a calendar year.

· Spouses who live apart can each claim a grant on their principal residence if they have a written separation agreement or a court order recognizing the separation.

For more information on the home owners grant please visit this link

HST New Housing Rebate

BC will provide a rebate for new housing purchased as a primary residence to ensure that, on average, purchasers of new homes up to $525,000 do not pay any additional tax due to harmonization. That is, they will pay no more in provincial HST than is currently embedded as PST in the price of a new home.

The rebate is available whether the new housing is to be owner occupied or rented.

The HST only applies to “new” residential housing; used (i.e., resale) residential housing is not subject to HST.

For more information and FAQ's, visit this link