MARIE TAVERNA & KIM TAVERNA

TAVERNA REAL ESTATE GROUP

Direct : 604-802-7759   

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Your tax guide to navigating homeowner and first-time buyer deductions this season

As the April tax deadline approaches, understanding the plethora of tax credits available can be a game-changer for homeowners and first-time buyers. 

Whether you're stepping into your first home or you're a seasoned homeowner, being aware of these deductions and programs can significantly impact your tax filings and maximize your return this season. 

GST/HST new housing rebate

  • What is it? Recoup a portion of the GST or the federal part of the HST paid for new or renovated homes.
  •  Eligibility: Buyers of new homes, constructors of homes, or individuals who have majorly renovated their primary residence.
  •  Qualifying homes: New or substantially renovated primary residences.
  •  Claim process: Submit your claim within two years after the purchase or completion of renovations.

First-Time Home Buyers' Tax Credit (HBTC)

  • What is it? A $10,000 non-refundable tax credit for eligible first-time home buyers, offering up to $1,500 in tax relief.
  •  Eligibility: First-time homebuyers or those who haven’t owned a home in the previous four years, including the buyer's spouse or common-law partner.
  •  Qualifying homes: Primary residences in Canada.
  •  Claim process: Claimed in the tax year when the home is purchased, on line 31270 of your tax return.

 Home Accessibility Tax Credit (HATC)

  • What is it? Offers a 15% non-refundable tax credit on up to $10,000 of eligible home renovation expenses, for a maximum of $1,500 in tax relief per year.
  •  Eligibility: Homeowners making accessibility-related renovations to accommodate seniors or individuals with disabilities.
  •  Qualifying renovations: Changes made to improve accessibility or help a senior or a person with a disability be more functional or mobile at home.
  •  Claim process: Claimed in the tax year when the expenses were incurred.

Multigenerational home renovation tax credit

  • What is it? Provides up to $7,500 in tax relief for eligible renovations to accommodate a senior family member or an adult with a disability.
  •  Eligibility: Homeowners undertaking renovations to create a secondary dwelling for a senior or a person with a disability.
  •  Qualifying renovations: Renovations that enable the senior or adult with a disability to live with a relative in a secondary dwelling.
  •  Claim process: Available for expenses incurred after the tax year it was introduced.

Rental income deductions

  • What is it? Allows landlords to deduct expenses related to generating rental income, including mortgage interest and property taxes.
  •  Eligibility: Property owners who earn rental income from residential or commercial properties.
  •  Qualifying expenses: Mortgage interest, property taxes, maintenance costs, utilities, and insurance.
  •  Claim process: Expenses are deducted in the tax year they are incurred.

Note this list isn't exhaustive, and specific provinces may offer additional deductions and credits not covered here.

Notice on Canada's Underused Housing Tax (UHT)

Effective since 2022, Canada's UHT imposes a 1% tax on underused foreign-owned properties, though it also has tax filing implications for those with rental units, or with properties held in partnerships or bare trust agreements, in order to claim exemptions. Anyone impacted by this tax is strongly encouraged to consult a tax professional to ensure adherence and avoid penalties.

If you have any questions about navigating these tax credits, please don't hesitate to reach out. 

Should you need more detailed tax advice, I'd be happy to refer you to a certified tax professional who can provide you with personalized guidance and inform you of other programs that may apply to your situation. Let's make sure you're getting the most out of your home-related tax opportunities this season!

Call me today!  


Tracey Ridout (BC)
Mortgage Agent
(604) 760-6917
tracey.ridout@mortgagegroup.com

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Increased seller activity is giving buyers more choice this spring

The number of Metro Vancouver1 homes listed for sale on the MLS® rose nearly 23 per cent year-over-year, providing more opportunity for buyers looking for a home this spring. 



The Greater Vancouver REALTORS® (GVR)2 reports that residential sales3 in the region totalled 2,415 in March 2024, a 4.7 per cent decrease from the 2,535 sales recorded in March 2023. This was 31.2 per cent below the 10-year seasonal average (3,512). 



“If you’re finding the weather a little chillier than last spring, you may find some comfort in knowing that the market isn’t quite as hot as it was last spring either, particularly if you’re a buyer,” Andrew Lis, GVR’s director of economics and data analytics said. “Despite the welcome increase in inventory, the overall market balance continues inching deeper into sellers’ market territory, which suggests demand remains strong for well-priced and well-located properties.”



There were 5,002 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in March 2024. This represents a 15.9 per cent increase compared to the 4,317 properties listed in March 2023. This was 9.5 per cent below the 10-year seasonal average (5,524). 



The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 10,552, a 22.5 per cent increase compared to March 2023 (8,617). This is 6.3 per cent above the 10-year seasonal average (9,923). 



Across all detached, attached and apartment property types, the sales-to-active listings ratio for March 2024 is 23.8 per cent. By property type, the ratio is 18.2 per cent for detached homes, 31.3 per cent for attached, and 25.8 per cent for apartments. 



Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.



“Even though the market isn’t quite as hot as it was last year, we’re still seeing modest month-over-month price gains of one to two per cent happening at the aggregate level, which is an interesting dynamic given that borrowing costs remain elevated,” Lis said. “With the latest inflation numbers trending in the right direction, it remains likely that we’ll see at least one or two modest cuts to the Bank of Canada’s policy rate in 2024, but even if these cuts come, they may not provide the boost to affordability many had been hoping for. As a result, we expect constrained borrowing power to remain a challenging headwind as we move into the summer months.”  



The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,196,800. This represents a 4.5 per cent increase over March 2023 and a 1.1 per cent increase compared to February 2024. 



Sales of detached homes in March 2024 reached 694, a 5.4 per cent decrease from the 734 detached sales recorded in March 2023. The benchmark price for a detached home is $2,007,900. This represents a 7.4 per cent increase from March 2023 and a 1.8 per cent increase compared to February 2024. 



Sales of apartment homes reached 1,207 in March 2024, a 7.9 per cent decrease compared to the 1,311 sales in March 2023. The benchmark price of an apartment home is $777,500. This represents a 5.7 per cent increase from March 2023 and a 0.9 per cent increase compared to February 2024. 



Attached home sales in March 2024 totalled 495, a 6.2 per cent increase compared to the 466 sales in March 2023. The benchmark price of a townhouse is $1,112,800. This represents a 5 per cent increase from March 2023 and a 1.7 per cent increase compared to February 2024.
Download the March 2024 stats package
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