Increase on Maximum Purchase Price for the Property Transfer Tax Exemption | First Time Buyers
To address housing affordability, the B.C. government announced in its budget for 2017 that it will be increasing the threshold of the province’s first-time homebuyer’s program to $500,000 from $475,000, a move it estimates will save first-time buyers up to $8,000 in property transfer taxes.
First Time Home Buyer's Program for BC
In BC, when you purchase or gain an interest in property that is registered at the Land Title Office, you are responsible for paying property transfer tax. The tax is charged at a rate of 1% for the first $200,000 and 2% for the portion of the fair market value that is greater than $200,000.
The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
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
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:
$500,000 if registered on or before February 21, 2017, or
$525,000 if registered on or after February 22, 2017
is larger than 0.5 hectares
has another building on the property other than the principal residence
Previously Required
have a fair market value of:
$425,000 or less if registered on or before February 18, 2014, or
$475,000 or less if registered on or after February 19, 2014
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:
$450,000 if registered on or before February 18, 2014, or
$500,000 if registered on or after February 19, 2014
is larger than 0.5 hectares
has another building on the property other than the principal residence
Learn More on the First Time Home Buyer's Program
Source: BC Government Website