First Time Home Buyer's Guide

Benefits of Home Ownership?

Pride of Home Ownership

Pride of home ownership is the number one reason why Canadians desire their own home. There is no landlord looking over your shoulder. You are able to make home improvements knowing that any appreciation that results, will be to your benefit. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.


In Canada, especially in the last few years, homes have appreciated considerably and in doing so have added substantially to owners net worth. Unlike stocks and bonds, you get to live in your real estate investment. Also, in Canada your principal residence is exempt from capital gains taxes.

Mortgage Reduction Builds Equity

Each month, part of your monthly payment is applied to the principal balance of your home loan, which builds your equity. You can borrow against a home's equity for a variety of reasons such as home improvement, sending your kids to university or college, or starting a new business. Why pay-off your landlord’s property when you can own your own?

Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they have can use, improve and sell. Their home is a safe haven for investment.

Costs to Expect When Purchasing a Home

          Conveyancing/Legal approximate fees are $1200 - $1350

          House Inspection approximate fees are $450 - $650

          Septic and Well Water Inspection approximate fees are $350 - $500 each

          BC Property Transfer Tax 1% on the first $200,000 and 2% on the potion of the fair market value greater than $200,000 and up to and including $2,000,000, and 3% on the portion of the fair market value greater than $2,000,000. If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000. First time home buyers are exempt up to $500,000 half hectare or smaller, and must be used as your permanent residence (Canadian Citizen or Perm Res). There is a partial exemption for properties that are larger than .5 hectare and less than $525,000.

          Newly Built Home Exemption from PPT must be used as your principal residence and have a fair market value of $750,000 or less and be 1.24 acres or smaller.

          GST on New Construction -  There is 5% GST on new construction; however, new home buyers can apply for a rebate of the 5% GST if the purchase price is $350,000 or less. The rebate is up to 36% of the 5% GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000.

          Property Tax At time of possession property taxes are adjusted and they become part of your home ownersexpense.

Nicole and Shea
Nicole and Shea
2230-A Cliffe Ave Courtenay BC V9N 2L4