Vancouver HouseVancouver Birdhouse
ContactSoldMLS # SearchMLS Map SearchSellingGreen Living
TestimonialsResourcesMLS Basic SearchOpen House Search
Vancouver
Buying Your Home

First Time Buyer's Property Transfer Tax Exemption (BC Government Program)

In British Columbia, when you purchase a property, there is a land transfer tax. Property Transfer Tax should not be confused with Property Tax. The Property Transfer Tax is a one time tax paid to the Provincial Government by purchasers of real estate. The Property Tax is the tax paid on an annual basis to the local City/Municipality.

The amount of tax you pay is based on the fair market value of the land and improvements (e.g. buildings) on the date of registration unless you purchase a pre-sold strata unit. The tax is charged at a rate of:

  • 1% on the first $200,000,
  • 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
  • 3% on the portion of the fair market value greater than $2,000,000.

How Do You 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

and the property must:

  • be located in B.C.
  • only be used as your principal residence
  • 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

Newly Built Home Property Transfer Tax Exemption (BC Government Program)

As of Febraury 2016 there is a new edpemtpion for newly built homes under $750,000. To qualify, the property (land and improvement) must be registered at the land title office after February 16, 2016 and you must be:

  • an individual
  • a Canadian citizen or permanent resident (you will be asked to provide your Social Insurance Number (SIN) and your birthdate)

and the property must:

  • be located in B.C.
  • only be used as your principal residence
  • have a fair market value of $750,000 or less
  • be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption, if the property:

  • has a fair market value greater than $750,000 and less than $800,000
  • is larger than 0.5 hectares
  • has another building on the property other than the principal residence

For more information: Other exemptions exist as well, such as a transfer of a principal residence between family members. For more information visit the Government of BC Website or call the BC Government at (250) 387-0604. Your lawyer or notary will also be able to answer your questions regarding Property Purchase Tax and possible exemptions.


Other Tricks & Tips for Successful Home Buying

Let Us Help Find the Right House for You...an easy to fill out form highlighting your "Dream Home".

Ten Steps to Buying your Home...find out the most important steps in planning the purchase of your first home.

Getting Pre-approved for a Mortgage...find out how you can increase your bargaining power.

Saving Money on Your Mortgage...helpful suggestions to reduce the amount of interest you pay.

Buying your Home with Just 5% down...there are many options to financing your home. Find out what options you might qualify for.

Closing Costs...don't forget about closing costs when you are purchasing your home.


Lisa MacIntosh Team - Personal Real Estate Corporation - Dexter Associates Realty
Phone: 604-263-1144 Fax: 604-263-6699 website: www.lisamacintosh.com
Medallion Club Member -
Top 10% of Realtors in Greater Vancouver
email: Lisa MacIntosh Copyright © 2017. All rights reserved.

Find Us On Facebook      Find Us On LinkedIn   Find Us On Youtube    Master Medallion Club Award Recipient     Realtor Care Award Recipient