Wishing you a wonderful and safe holiday with your family and friends! Thank you for entrusting me with your real estate needs and your continuous support! Before we head into the new year, here are 6 important changes coming to the BC real estate market in 2023!
1. CANADA'S FEDERAL FOREIGN BUYER BAN
Foreign Buyers will not be able to purchase residential real estate in Canada for a period of 2 years starting on January 1, 2023. Here's what you need to know:
This legislation was created to:
- Reduce foreign money coming into Canada to buy residential real estate
- Establish penalties for anyone who helps a non-Canadian to violate this law
- Cool the hot housing market from earlier this year and keep more housing inventory available for local Canadians to buy.
This will affect:
- Foreign Buyers = Non-Canadian citizens and Non-Canadian Permanent Residents
- Corporations and/or Entities owned by Foreign Buyers
For a list of exempted parties and other exemptions, check out the full details HERE
2. TAX-FREE FIRST HOME SAVINGS ACCOUNT (FHSA)
This program will start up sometime in mid-2023 and its goal is to help future homeowners buy their first home! You can save up to $40,000 with a maximum contribution of $8,000 per year. Similar to the RRSP, your FHSA savings are tax deductible and the investments held in the account can grow tax-free like the TFSA. Further details can be found
3. BC HOME BUYER RESCISSION PERIOD (HBRP)
Starting in 2023, home buyers will have 3 clear business days to walk away from a residential purchase after signing the contract. This applies to all contracts, regardless of subjects. This rescission period is mandatory by BC law and cannot be waived. Buyers who back out of a contract within this three-day period will have to pay a rescission fee of 0.25%. For example, if the buyer exercises their right of rescission on a $1 million dollar home, they'd be required to pay the seller $2,500. Further details can be found
3 FEDERAL HOUSING TAX CREDITS
4. The Multigenerational Home Renovation Tax Credit.
This would provide up to $7,500 in support for building a secondary suite for a senior or an adult with a disability starting in 2023.
5. Doubling the First-Time Home Buyers' Tax Credit amount to $10,000, providing up to $1,500 in direct support to home buyers. This applies to homes purchased on or after January 1, 2022.
6. Doubling the qualifying expense limit of the Home Accessibility Tax Credit amount to $20,000 for 2022 and subsequent tax years. This will mean a tax credit of up to $3,000 for important accessibility renovations or alterations.