The Provincial Government announced last week that effective February 22nd, first time home buyers will receive a full exemption on Property Transfer Tax for any purchase up to $500,000, and a partial exemption for purchases up to $525,000!
This is an increase from $475,000 for a full exemption and $500,000 for a partial exemption. Although this isn't a large increase it is a step in the right direction, and hopefully they continue to raise this amount over time, but for first home buyers this could now save you $8,000 on your home purchase of $500,000
The Property Transfer Tax is calculated at a rate of 1% on the first $200,000 of the purchase price and 2% on the balance.
Do I Qualify?
To qualify for a full exemption, at the time the property is registered you must:
- be a Canadian citizen or permanent resident
- have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
- have never owned an interest in a principal residence anywhere in the world at any time
- have never received a first time home buyers' exemption or refund
and the property must:
- be located in B.C.
- only be used as your principal residence
- have a fair market value of:
- $475,000 or less if registered on or before February 21, 2017, or
- $500,000 or less if registered on or after February 22, 2017
- be 0.5 hectares (1.24 acres) or smaller
You may qualify for a partial exemption from the tax if the property:
- has a fair market value less than:
- is larger than 0.5 hectares
- has another building on the property other than the principal residence
For full details to see if you qualifty for the first time home buyer property transfer tax exemption view the link below: