In most of Canada, real estate Buyers pay Property Transfer Tax (“PTT”). In BC, it is calculated at 1% on the first $200,000, 2% of the fair market value (usually the purchase price) in excess of $200,000 and 3% on the purchase price over $2,000,000. Please note that Canada Mortgage and Housing Corporation (CMHC) and the Provincial Property Transfer Tax (PTT) have completely separate and distinct rules for determining your status as a First Time Home Buyer.
Who Qualifies for the Exemption from the PTT as a First Home Buyer? You qualify for the exemption if:
- you are a Canadian citizen, or a permanent resident as defined by the Immigration and Refugee Protection Act (Canada),
- you have lived in BC for 12 consecutive months immediately before the date you register the property, or you have filed two income tax returns as a British Columbia resident during the 6 years before the date you register the property,
- you have never owned an interest in a principal residence anywhere in the world at any time (a principal residence is defined as the usual place where an individual lives), and
- you have never received a first time home buyers exemption or refund.
Full details can be found here.
What Property Qualifies for the Full Exemption?
The property you purchase qualifies for a full exemption if:
- the fair market value of the property (land plus improvements) is not more than the current threshold of $500,000,
- the land is 0.5 hectares (1.24 acres) or smaller, and the property will only be used as your principal residence,
- The current threshold amount applies to purchases registered on, or after, February 22, 2017.
For the Property Transfer Tax Calculator, click here.
More information about the requirements for the exemption from the PTT as a First Time Home Buyer in BC can be found here.
Call us with any questions or to make an appointment at 604-526-7884