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

 

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