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. This is a tax that is charged on all real estate purchases in BC. Typically, a first time home buyer is exempt from this tax but only to the threshold price. As you can imagine, the old threshold did not offer a lot of property options for the home buyer. This will make the goal of home ownership more affordable for many first-time buyers.
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 primary 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