Whether you’re buying your first house, adding on a secondary suite, or looking to upgrade into your dream home, there are a number of government incentives available to lessen the financial burden. We’ve already done a post on government incentives for first-time buyers, so the following will be available for all qualifying homebuyers.
1. Increased Price Cap for Insured Mortgages
An increased price cap for insured mortgages was announced in September 2024. Previously capped at $1 million, mortgages up to $1.5 million can now be insured (if the down payment is 20% or less of the purchase price), effective December 15, 2024. This price cap hasn’t been adjusted since 2012, and the new guidelines will make qualifying for a mortgage easier for many Canadians.
2. 30 Year Mortgages for New Builds
Homebuyers purchasing newly built homes and condos can now take advantage of 30 year mortgage amortizations, as of December 15, 2024, if they qualify. This program gives an additional 5 years to pay back a mortgage, helping to reduce monthly payments for Canadians. Between August and December 2024, this program was only available to first-time home buyers of new builds, however the program has expanded to include all first-time home buyers and all buyers of new builds. A news release from September 2024 discusses all of the changes to this program.
3. BC Residents’ New Housing Property Transfer Tax Exemptions
Another benefit for BC residents purchasing a newly built home! Buyers of newly constructed homes (including condos) up to $1,100,000 in value are exempt from the Property Transfer Tax, with partial reductions available for homes between $1,100,000 and $1,150,000. Find out if you qualify on the BC Government’s website.
4. Federal GST/HST New Housing Rebate
Purchasers of newly constructed homes can also benefit from the federal GST/HST New Housing rebate. Your eligibility for this rebate depends on various factors, all of which can be found on the Government of Canada’s website here.
5. Federal Incentive for Building Secondary Suites
Starting January 15, 2025, homeowners will be able to access the equity in their homes to finance the construction of secondary suites. Up to 90% of the home’s value may be financed, including the value added by the secondary suites. The refinanced mortgage may be amortized over a 30 year time period, and mortgage insurance can also be obtained in this situation if the home price does not exceed $2 million dollars. There are some restrictions that apply; more information can be found in the Government of Canada’s news release from October 2024.
6. OSFI Stress Test Eliminated When Switching to Another Lender
Effective November 21, 2024, the federal banking regulator OSFI (Office of the Superintendent of Financial Institutions) is allowing borrowers who are switching lenders at renewal to no longer be required to meet the stress tests’ minimum qualifying rate requirement for uninsured mortgages. This change will apply so long as the borrower maintains their current amortization schedule and loan amount. The result will be greater choice of lenders for the borrower as they navigate their options at renewal time.
7. BC Home Owner Grant
After purchasing a home, the BC Home Owner Grant helps reduce the amount of property tax paid each year. For many homeowners who have homes valued up to $2,150,000, the grant offers:
- Up to $770 in property tax relief for most homeowners
- Up to $1,045 for seniors, veterans, and people with disabilities
Partial grants are available for most homeowners with homes valued up to $2,264,000. This grant applies to both detached homes and strata properties. More information can be found on the BC Government Home Owner Grant webpage.
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