BC’s 2014/15 budget contained a piece of very good news for some first-time homebuyers: The threshold for exemption for Property Transfer tax (PTT) has been increased to $475,000 (from the prior threshold, $425,000). Between $475,000 and $500,000 there will be a partial exemption. If you’re considering a purchase between $475,000 and $500,000 let me know; I’d be happy to walk you through the calculation.
Eligibility requirements for the Property Transfer Tax exemption for first-time home buyers are as follows. 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
- you 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 after February 19, 2014
- be 0.5 hectares (1.24 acres) or smaller
This will be a big help for First-Time Home Buyers in BC’s major cities. It’s increasingly hard to find housing that is suitable for small families for less than $425,000, so I’m glad to see the Provincial Government has taken note of this and increased the threshold. This will make the goal of home ownership more affordable for many first-time buyers.