The Victoria Real Estate Board has been made aware of increased confusion over the interpretation of the new BC First-Time New Home Buyers’ Bonus.
Board Staff are in regular contact with the Ministry of Finance to ensure have current updates.
To clarify:
(1) The bonus of a maximum $10,000 is not linked to the buyer’s taxable income unless the individual/couple’s net income from line 236 of their tax return is over $150,000 annually. At that stage the bonus gradually reduces until the annual income reaches $200,000.
(2) The bonus will be issued as a cheque by the BC Ministry of Finance.
(3) The purchaser will have to apply for the bonus on a form to be available in a few weeks from the provincial government. The application will be processed, and then a cheque will be issued.
(4) The amount of the bonus is to be calculated as follows:
“The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a maximum $10,000.” (Source: BC Ministry of Finance, The BC First-Time New Home Buyers’ Bonus fact sheet)
For further information, see the BC Ministry of Finance website for their Fact Sheet and “Q&A” documents.
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