Good news for first time buyers!
New Support for Homeowners
For many people, the most secure and stable housing option is ownership…which can also be a challenge in a growing economy. Prices are high, and they keep going up. In 2006 alone, total residential property values increased by 24 per cent province wide.
That says a lot about the strength of our economy, and the confidence people have in our future.
But what about young people, just starting out…wondering how on earth they will ever afford their first home?
Imagine…planning, saving your money, budgeting carefully…and then, when you think you might just have enough money for a down payment…prices jump another 10 to 20 per cent.
We do have a First Time Home Buyers’ Program to help people get a foot in the door…by exempting them from the Property Transfer Tax. But it’s time to adjust the program to better reflect what’s happening in the market.
Today we are announcing two key changes…which, together, will make the dream of owning a home a lot more accessible for many young people.
First, we are raising the threshold for the First Time Home Buyer’s Program effective immediately, first-time buyers can receive the full benefit when they buy a home valued up to $375,000.
That’s an increase of $50,000 in the Lower Mainland and Greater Victoria.
In addition, for the first time, the threshold will be uniform – right across B.C. – meaning an increase of $110,000 for first time home buyers in other parts of the province.
Property values are soaring in every part of the province…with some of the biggest increases in places like the Okanagan, the Kootenays, the Shuswap and the North. In fact, statistics released this Fall showed that average selling prices were higher in Kelowna than in places like Toronto and Calgary…and second to the city of Vancouver.
That’s the new reality. And these changes – raising the threshold, and making it uniform across B.C. – will help more of our young people buy their first home…saving them as much as $5,500.
With this budget, we are also providing new support for first-time buyers whose homes are built by volunteers with Habitat for Humanity. These are lower-income working families who contribute sweat equity…in return for affordable, interest free mortgages.
As a government…we want to encourage and support those people and organizations that help make affordable housing a reality for more B.C. families.
And all these changes to the First Time Homebuyers’ Program will help more people get into the market.
But what about those who already own homes and…as their assessments rise…are worried about losing their Home Owner Grant?
We must never be dismissive of these genuine concerns of B.C. homeowners. Losing the grant can make the difference between dependence and independence…between staying in your home verses being forced to move.
As a result, we are making improvements to the Home Owner Grant.
As the government announced in January, the full grant will now be available for homes worth up to $950,000. This new, higher threshold means that 95 per cent of B.C. homeowners will continue to be eligible for the full grant of $570 … or $845 for seniors, veterans and people with disabilities, saving homeowners $14 million per year.
However, even this adjustment does not take into account the low-income senior whose home…perhaps bought just after the war…is now valued at more than our stated limit for the Home Owner Grant.
In the breath of one assessment, that senior can go from receiving over $800 to nothing. That’s a big hit for someone on a fixed income.
I’ve personally talked to people in this situation…and I have received a letter from a member of the opposition on this matter. I have seen the distress that these high assessments have caused some of our seniors who are worried about losing their homes.
This is not something that our seniors…who have given so much…should have to endure. So we are going to change it.
Starting now, low-income seniors, veterans and people with disabilities will be eligible for a Home Owner Grant…regardless of their home’s assessed value. Eligibility will be based on thresholds for premium assistance under the Medical Services Plan.
Seniors will also continue to have the option of deferring their property taxes…until their home is sold.
This option is currently available to homeowners aged 60 and older. Uptake has risen fivefold since 2001. However, we believe this program could benefit even more people.
Since many British Columbians are choosing to retire earlier, we will introduce legislation to lower the age for property tax deferral from 60 to 55.
Best Wishes to all of our Home Owners in beautiful British Columbia!
There is so much to see and do in the North Okanagan!