First Time Homes Buyers Property Transfer Tax Exemption
When you buy a home in BC, you will have to pay the property transfer tax. The cost of the tax is calculated as 1% on the first $200,000 + 2% up to $2 million + 3% up to 3 million and if residential 5% on the balance over $3 million. This can be quite costly so the government has a tax break for first time home buyers.
To be considered a first time home buyer, at the time the property is registered…..
You must meet the following criteria:
Full exemption (100%), the property itself must:
Once you received the exemption, you must have the following to keep it:
When you buy a home in BC, you will have to pay the property transfer tax. The cost of the tax is calculated as 1% on the first $200,000 + 2% up to $2 million + 3% up to 3 million and if residential 5% on the balance over $3 million. This can be quite costly so the government has a tax break for first time home buyers.
To be considered a first time home buyer, at the time the property is registered…..
You must meet the following criteria:
- Be a Canadian Citizen or permanent resident
- Live in B.C in the last 12 month or
- Filled income tax return as a B.C resident twice in the last 6 years
- Have never owned or had an interest in a principal residence anywhere in the world at any time
- Have never received a first time home buyers’ exemption or refund
Full exemption (100%), the property itself must:
- Located in BC
- Used only as your principal residence
- Have a fair market value of $500,000 (as of Feb 22 2017)
- Is 0.5 hectares (1.24 acres) or smaller
- Has a fair market value less than 525,000 (as of Feb 22 2017)
- Is larger than 0.5 hectares
- Has another building on the property other than the principal residence
Once you received the exemption, you must have the following to keep it:
- Moved into the home within 92 days of the date the property was registered at land titles (usually the “completion date” on your contract of purchase and sale)
- Live in the house as a principal residence for min 1 year
- If you move out after 1 year, you can keep a part of the exemption
