New Programs of Interest for Homebuyers

February 28, 2012

The province of B.C. has introduced new programs of particular interest to Victoria homebuyers and home sellers, meant to ease the transition out of the HST and back into the PST.
The province increased the threshold for the HST rebate on new homes from $525,000 to $850,000 - a measure the homebuilding industry said would have the immediate effect of kickstarting construction in places such as Victoria and Vancouver, where the average cost of a new home is well above the $525,000 threshold.
Homebuyers at the top end of the scale are now eligible for a rebate of $42,500 - 71.43 per cent of the provincial portion of the HST. Previously exempt from provincial sales tax, new homes are subject to the harmonized tax.
When it introduced the tax, the province provided a rebate of a portion of the HST.
Purchasers of new homes costing up to $525,000 were previously eligible to receive the rebate of 71.43 per cent of the provincial portion of the HST, up to a maximum of $26,250, while homes over $525,000 were eligible for a flat rebate of $26,250, but the buyer had to pay the HST beyond that threshold.
The government also announced that purchasers of new secondary or recreational homes worth up to $850,000 outside Greater Victoria and Vancouver would be eligible for a provincial grant of up to $42,500. Until now, there had been no HST rebate for new second and recreational homes.

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