| 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 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.
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.
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power. Saving
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Costs...don't forget about closing costs when you are purchasing your
home. | 
