Property Transfer Tax - First Time Home Buyer's Program

(Updated February 2008)

by Del Elgersma

Property Transfer Tax is a provincial tax on the transfer of real estate. It is 1% of the first $200,000 of value, and 2% on the amount over $200,000. The First Time Home Buyers' Program provides a tax exemption from Property Transfer Tax for individuals buying their first home. Buyers who meet the following conditions will be eligible for the exemption.

The Buyer:

• must be a Canadian citizen or permanent resident who has never owned a home anywhere in the world, and has
  • lived in BC for one full year prior to the purchase, or
  • filed two income tax returns as a BC resident within the last six years.
  If the buyer is not a Canadian citizen or permanent resident at closing, but becomes one within one year of closing, the buyer can apply for a refund of the tax.

• must occupy the property as their principal residence for the first year of ownership, or the buyer may have to pay back some or all of the tax. If the property is vacant land, the house must be constructed within one year of closing, and the buyer must live in the house for the balance of the year.

The Property:

• must not exceed $425,000. A proportional exemption is now available for properties that have a value of up to $25,000 above the threshold. (i.e: up to $450,000)
• in the case of vacant land, the value of the land plus the total construction costs must not exceed the amounts stated above.
• must be classified as residential. If some of the buildings on the property are not classified as residential, or if the property exceeds 0.5 hectares (1.24 acres) in area, only a partial exemption is available.

If you have any questions about the First Time Home Buyers' Program, please call us.

With competitive fees and a commitment to exceptional service for you and your clients, Beacon Law Centre can be a partner in your success. Our dedicated and knowledgeable lawyers and staff are a resource for your legal questions. We are approved to prepare mortgage documentation for every major financial institution in the area. Our systems and technology are used to improve our service, not replace it. We communicate in plain language, not legalese. Our success is measured by the long-term relationships we enjoy with our clients.

If you would like to work with a law firm that is dedicated to helping you succeed, please call Del or Lianne.