John Lam
Home Sellers Buyers Listings
About Us Happy Clients Resources Contact Us
 
British Columbia Property Transfer Tax

Property Transfer Tax (PTT) is a tax payable to the Provincial Government by the purchaser(s) or transferee of real estate at the time the application to register a transfer is presented to the Land Title Office. The tax applies to all types of real estate, whether residential, commercial, or industrial.

PTT is calculated as follows: 1% of the first $200,000 of the property's fair market value and 2% of the remaining fair market value.

Exemption for First Time Home Buyers in BC

PROPERTY TRANSFER  TAX ON BC REAL ESTATE PURCHASES EXCEPTION FOR FIRST TIME HOME BUYERS

If you are purchasing a home for the first time in BC, you may qualify for an exemption from the PPT (property transfer tax).

As a Purchaser you are exempt if:

  • You must be a Canadian Citizen, or Permanent Resident (as defined by Immigration Canada).
  • You must lived for 12 months in British Columbia consecutively prior to your date of a property registration.
  • You have not ever owned a principal residence anywhere in the world at anytime.
  • you have never received an exemption or refund as first time home owner in BC before.

The Property qualification:

  • The value of the property is not more than $425,000. A proportional exemption is available for properties purchased for between $425,000 and $450,000.
  • The land size is no larger than 1.24 acres (0.5 hectares)
  • The Purchased property will be your principal residence.

Mortgage financing you receive if:

  • It is at least 70% of the value of the property
  • The mortgage term of at least 1 year
  • The mortgage financing is registered with 7 days of your property registration date.

Requirements to Keep the exemption

  • You need to occupy the home within 9 days of the date of registration of the property in your name and continue to live in the home as your principal residence for min of 12 months after registration.
  • If you bought vacant land, a principal residence will have to be built within 1 year and you will need to reside there for the reminder of the first year.
  • The mortgage may be paid down by any amount within the first year without losing the exemption.

 

John MK Lam   604-671-1818

 
Copyright , John MK Lam - RE/MAX City Realty. All rights reserved