First Time Buyer’s Property Transfer Tax Exemption (BC Government Program see link to site below) http://www.sbr.gov.bc.ca/business/property_taxes/property_transfer_tax/first_Time_home_buyer.htm
This program was introduced by the BC Government to help First Time Home Buyers get into the market easier.
In British Columbia, when you purchase a property, there is a land transfer tax of 1% on the first $200,000 in value, and 2% on the balance.
How Do You Qualify?
To qualify for the First Time Home Buyers Property Tax Rebate you must meet all of the following requirements:
You must be a Canadian citizen or permanent resident of Canada.
You must be the purchasing a principal residence.
You must not have previously owned an interest in a principal residence anywhere in the world.
You must have resided in the province of B.C. for at least one year (12 consecutive months) immediately prior to the application to register the purchase of the principal residence.
The maximum purchase price to qualify for the exemption through out the province is $425,000 (A partial exemption is available for homes between $425,000.00 and $450,000.00 – see formula below).
If a property purchase is registered on, or after, February 20, 2008, the purchaser is no longer required to meet any financing requirements to qualify for the FTHB program.
The amount borrowed must have a term of at least one year.
The purchaser must occupy the property as their principal residence within 92 days of completion.
To be eligible for the full exemption, the purchaser must then continue to use the residence as his or her principal residence for at least one year after the date the transfer was registered.
Under certain circumstances, the purchase of raw land or a building lot may qualify.
Other conditions apply.
NEW CALCULATION OF PPT WHEN THE PURCHASE PRICE FALLS BETWEEN $425,000 AND $450,000.
A partial exemption is now available for homes between $375,000.00 and $400,000.00. To calculate the amount of tax payable on homes between $425,000.00 and $450,000.00, use the following formula:
Amount of PTT X ($450,000.00 – Purchase Price)
$25,000.00
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.