BC Home Owner Grant Threshold raised from 1.2 M to 1.6M
The BC government announced on Tuesday January 10, 2017 that they would be raising the BC home owner grant threshold from 1.2 million to 1.6 million.
Not sure what the BC home owner grant is? Here’s the definition:
The purpose of the BC Home Owner Grant is to reduce the amount of money you pay for a principle residence with regards to property tax. There are two types of home owner grants in BC, which are the basic grant and the senior/additional grant. You can only claim one type of home owner grant.
When a home is exceeding the threshold, the amount given to the owner as a part of the grant is reduced by $5 for every $1,000 of its assessed value in excess.
The change comes post home owners receiving their recent property assessment, with many single-family homes in Greater Vancouver increasing 30-50% of last year’s assessed rate. Specifically, Vancouver assessments, controlling for all styles of homes, went up 30.62%; Richmond went up 34.68%; Burnaby went up 30.72%.
With such a substantial increase in both urban and suburban areas of the Lower Mainland, many home owners have exceeded the previous threshold and were no longer able to receive the $570 basic grant.
As the property assessment’s were taken as a value of July 1, 2016 – many stating prior to the foreign buyer tax that impacted the market in some areas over $100,000 – the change has taken this in to account, and the government says that nearly all residents that received the grant in 2016 will now be able to receive it in 2017. Mr. De Jong, Finance Minister, ensures that 91% of homeowners across the province, and 83% of home owners in Metro Vancouver will be able to qualify for the grant under the new threshold of 1.6M. Under the new change, to not receive the grant entirely, a home would now have to be greater than $1,714,000.
Who is eligible for the basic grant?
- To be eligible for the grant, a homeowner must be a Canadian citizen or permanent resident, and living in BC.
- The home in which they are claiming the grant must be their principal residence.
- The basic grant is $570. For home owners in northern or rural areas, the grant is $770.
Who is eligible for the senior/additional grant?
- To be eligible for the senior grant, a home owner must be one or more of the following:
- 65 years old, or older
- Have a disability
- Receive a war veteran’s allowance
Homeowners who are over 65, disabled or are the surviving spouse of a veteran can receive an additional grant to reduce their property taxes by up to $845, or $1045 for residents in northern or rural areas. If you qualify for an additional grant, you must also provide supporting documents.
Looking for more information? Here’s a link for more information about the Homeowner Grant.
OTHER POSTS YOU MIGHT BE INTERESTED IN…