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.
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
- 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