Did you know that there are government grants that can help you with some of these expenses?
BC Homeowners Grant
Did you know that if you own a home in British Columbia that you can get a reduction of your municipal property taxes? With that said, you do have to be an eligible homeowner. You must:
- Be at least 19 years old
- Be a permanent resident of Canada or a Canadian citizen
- Live in BC
- Live in the house (it should be your primary residence)
- Be the registered owner of the residence (or one of them)
With the BC Homeowners Grant, there is also a grant threshold. This means that the assessed or partitioned value of your home can’t exceed this amount. Keep in mind that this isn’t the purchase price, this is what BC Assessment shows as the market value of your home. For 2023, the grant threshold amount is $2,125,000.
If your property’s assessed value exceeds that threshold amount, but it meets all of the other criteria, then you can still apply for the grant, but it will be given at a reduced amount. However, if the value of the home exceeds $2,334,000 in northern and rural areas or $2,294,000 in other areas, you can receive a partial grant.
Homeowners Grants in Different Provinces
Throughout Canada, different provinces offer different homeowner grants. The one offered in BC is different from those offered in other provinces. Here’s a look at them and how they work.
Alberta
In Alberta, there are a few different provincial programs in the form of homeowner grants available. The first is the SHARP program, also known as the Seniors Home Adaptation and Repair Program. This offers financial assistance in the form of low-interest loans to seniors for different home repairs. They offer amounts up to $40,000.
In some provinces in Alberta, they also offer the property tax assistance program. This program helps Albertans cover the costs of their property taxes that they otherwise couldn’t afford. In terms of municipal programs, there is the Clean Energy Improvement Program which allows homeowners to finance upgrades that provide energy efficiency.
The upgrades include renovations such as solar panels, heat pump systems, and more. There’s also the Canada Greener Homes Grant, which is one of the federal grant programs that help improve energy efficiency with insulation, air sealing, and windows.
Saskatchewan
Saskatchewan in another province that has grants in order to help with affordable housing. The Secondary Suite Incentive Grant provides up to 35% or $35,000 in order to build a new secondary suite in their home. There’s also the Home Renovation Tax Credit, which allows you to claim a 10.5% tax credit up to $4,000 for eligible expenses.
Specific to Saskatchewan, there are the SaskEnergy and SaskPower rebates. These allow us to reduce energy costs by providing rebates for energy-efficient upgrades. These provide energy savings by reducing your energy consumption. This includes things like air source heat pumps and more.
Manitoba
The most similar thing to the homeowner’s grants in BC is the property tax relief options in Manitoba. The Homeowners Affordability Tax Credit allows those who are considered to be eligible homeowners to reduce school taxes by $1,500. On top of that, Manitoba also offers energy efficiency grants and rebates.
First, Efficiency Manitoba offers rebates for upgrades that are energy efficient as well as new home construction. There are also provincial/federal home renovation grants that provide up to $20,000 to switch from oil heaters to heat pumps.
Ontario
Ontario offers a variety of different grants for homeowners. For first-time home buyers, this includes the HST new housing rebate and land transfer tax refund. There’s also the home accessibility tax credit, which is a non-refundable tax credit for renovations that improve home access or safety for seniors, as well as those with disabilities.
Specific to Ontario, there is the Home Renovation Savings Program. This offers rebates for energy-saving upgrades that go along with home renovation grants from the federal government.
Nova Scotia
In terms of property taxes, Nova Scotia homeowners who are seniors can qualify for a 50% rebate of municipal property taxes. The available funding allows for a maximum amount of $800. On top of that, there’s also the Canada-Nova Scotia Targeted Housing Benefit, which gets you up to $200 per month for homeowners who pay more than 50% of their income on housing.
To make the home accessible for seniors’ independence, there is a maximum grant amount of $3,500 to make accessibility modifications to their home. While this may not account for major repairs, there are federal programs that can help with that. However, there’s also the accessible housing program that offers funding amounts in the form of grants for accessibility upgrades.
There’s also a Secondary and Backyard Suite Incentive Program, which is a forgivable loan program which helps you build secondary suites for either affordable housing or even family members. This provides up to $40,000 to turn single-family homes into multiple-family homes. While it may not cover the full cost, as long as you meet the program requirements, you won’t have to pay the funds back.
New Brunswick
The New Brunswick Home Improvement Program can provide up to $30,000 in loans for major repairs. These are forgivable, low-interest loans, and, like most programs, eligible applicants must meet the requirements to qualify. These don’t include capital projects, but will account for other project costs like insulation improvements to reduce air leakage, and installing air conditioning or a new roof.
In terms of energy upgrades, the Enhanced Energy Savings Program offers free heat pumps and insulation upgrades to qualifying households. There’s also the Home Completion Loan Program, which assists low-to-moderate income households in completing partially constructed new construction homes. There are also municipal programs that you can look into based on where you live.
Newfoundland and Labrador
The first program available in Newfoundland is the Home Energy Savings Program. This program provides up to $5,000 to low-income households for energy-efficient retrofits. Getting an energy assessment with an energy advisor can help you determine the right Energy Star upgrades, potentially reducing cooling costs, as well as other savings.
The Provincial Home Repair Program offers up to $6,500 to low-income households to cover different repairs like structural issues, electrical issues, and even plumbing or heating repairs. There are also additional incentives and funding opportunities like the Home Modification Program and the Aging While at Home Grant.
Quebec
Quebec offers different municipal funding opportunities that cover eligible costs in various aspects of the home. This can include things like heating systems, and the coverage is based on household income. That said, there are also many provincial-wide programs such as Renoclimat, Econologis, and more.
Prince Edward Island
Like many other provinces, PEI offers efficiency rebates. For these, you’ll likely need detailed invoices, which are used to ensure compliance with the program. A few examples of that are covered for those on grid-connected systems, insulation, windows, doors and heating systems. You can also get a post-retrofit evaluation to see how much your energy consumption will be impacted.
How Much is the Grant?
The amount for the basic grant in BC is the same for everyone unless you qualify for any additional grants. If you live in the Capital Regional District, the Metro Vancouver Regional District, or the Fraser Valley Regional District, then the standard grant amount is $570.
For the rest of the province, the amount is $770. If you are a senior, veteran, have a disability, live with a spouse or relative with a disability or you are the spouse or relative of a deceased owner, you could then qualify for larger grant amounts. That said, though, property owners in British Columbia must pay a minimum of $350 for their property taxes yearly.
In order to receive these additional grants, you must qualify. Getting the seniors’ grant is simple since it’s an option on the homeowners’ grant application. The disability grants are more complex. To be approved for the disability grant, you must meet all of the other requirements as well as either:
- Receive disability assistance from the province, hardship assistance or a supplement under the Employment and Assistance for Persons with Disabilities Act
Or
- Pay at least $150 per month for assistance with daily activities. This can be for you, your spouse or yourself. You could also have spent at least $2,000 in structural modifications to the home or purchased it that way with at least $2,000 worth of work done.
How and When to Apply
Applications for your BC Homeowners Grant can be completed at any time throughout the tax year. If you qualified for the grant last year but didn’t apply, you can apply retroactively. Keep in mind, though, that if you fill out your grant application late, you could be charged some late fee penalties.
When it comes to applying for the grant, only one person can apply, even if there is more than one homeowner. If you want to qualify for a grant other than the standard amount, the person who meets the qualifications must be the one who applies.
In order to apply, there are a few different ways you can go about it. You can apply online, via phone call with an automated service or with a live agent, or you can go to a Service Canada branch. If you pay your taxes through the bank, you will have to file the grant yourself. If you choose to go into the designated location to pay your property taxes, you can likely hand in your homeowners’ grant application there at the time of payment.
The most common way to apply for the Homeowners Grant is online. In order to do this, you are going to need the jurisdiction number and roll number for the property. These can be found on your assessment from BC Assessment or your Property Tax Notice. You can also search these numbers on the BC Assessment website. If you have these numbers along with your social insurance number, then you will be able to complete your application.
Other Provincial Rebates
Every province has their own programs that help to reduce what you pay as a homeowner. BC offers the homeowners grants, but what do the rest offer?
- Alberta – Peak Housing Initiatives Program allows middle-class individuals and families to get help with a down payment and purchase a home.
- Saskatchewan – You can get a provincial first-time home buyers’ tax credit as well as a federal one.
- Nunavut – the NDPA or down payment assistance program helps homeowners to get 10% for their down payment instead of the minimal 5%.
- Prince Edward Island – In PEI, you could get the First Time Home Buyers Transfer Tax Exemption, meaning you don’t pay for the registration of the deed of conveyance.
- Nova Scotia – The First Time Home Buyers Rebate Program allows you to get some money back on your purchase if you meet the requirements.
- Ontario – In Ontario, first-time home buyers can get a refund on their land transfer taxes.
- New Brunswick – The Home Ownership Program helps modest-income families buy or build their first home.
- Quebec – You can get a Home Buyers Tax Credit as a first-time home buyer.
- Northwest Territories – The Home Purchase Program helps modest-income residents by providing them with part of the down payment for their first home.
When it comes to buying your first home in Canada, though, there’s also another program you can take advantage of. This is mortgage insurance through the Canada Mortgage and Housing Corporation. This allows you to only put a 5% down payment in order to purchase your first home, making purchasing a home a lot easier.
Other Ways Homeowners Can Save Money
While the Homeownesr grant is only available in BC, there are plenty of other grants and ways to save money available for homeowners as well as prospective homeowners in Canada.
Home Buyers Plan
If you have an RRSP (Registered Retirement Savings Plan) did you know that you are actually able to use those funds as a down payment in order to purchase your first home. This is called the Home Buyers Plan, and, as long as you meet the eligibility criteria, you can make a tax-free withdrawal of up to $35,000 as your home buyers amount (for an individual) in order to buy or build your home. After you have made the withdrawal, you have 15 years to pay the money back interest-free.
Tax-Free Home Savings Account (FHSA)
This is a new type of savings account that is specifically designed to save to purchase a home. It allows you to make tax-deductible contributions of up to $8,000, with a max of $40,000. Any unused contributions can be forwarded to the next year. It order to qualify for this account, you must:
- Be between the ages of 18 and 71
- Be a Canadian resident
- Be a first-time home buyer
Tax Credits
When you purchase your first home, when you do your income tax return, there are a few tax credits that you could qualify for from the Government of Canada. For the Home Buyers Amount credit, you could get up to the maximum amount of $750.
You can also split that amount if you purchased the home with someone else. In order to receive this credit though, you must be first time buyers and live in the home or have a related person with a disability live there. It must also be considered a qualifying home.
The next credit you could receive is the NewHousing Rebate. Some Canadian provinces will give you a partial or full tax rebate when you own a new or substantially renovated home. The home must be used as a primary residence by one of the purchasers or an immediate family member.
Canada Greener Homes Grant
This grant is meant to help Canadian homeowners make their home more energy efficient and save money while fighting climate change. They offer grants ranging from $125 to $5,000 for certain eligible retrofits done to your home.
You could also get up to $600 towards the cost of pre- and post-retrofit EnerGuide evaluations. These financial incentives can make it much easier to make the upgrades that you are looking for.
Along with the Greener Homes Grant, there is also the Canada Greener Homes Loan. This is an interest-free loan of up to $40,000 with a repayment term of up to 10 years. It’s open to homebuyers who have an active application for the Greener Homes Grant and are in the pre-retrofit stage.
Single Parent Home Owner Grant
While there are no specific grants for single parents, there are plenty of different grants that single parents can have access to. The grants you can apply for will vary depending on the province you live in, as well as your household income.
Grants for Fixing Up Old Houses
As you can see above, each province has their own grants that you can qualify for. Many of these grants are great for fixing up old houses. They include energy upgrades, which can include charging systems for electric vehicles, as well as insulation, solar upgrades, and more.
Conclusion
In Canada, there are a few different ways that you can save some money when it comes to purchasing or owning a home. There may also be ways for you to jump into home ownership that you may not have been aware of before. Either way, owning a home can be expensive, so saving money where you can is always helpful..
