All buyers of real estate in BC must pay property transfer tax at the time of registration of the transfer, unless they have a valid exemption. The tax is based on the property’s fair market value and set at 1% of the first $200,000 and 2% of any amount above that. There are numerous exemptions from property transfer tax, with the most commonly used being the First Time Home Buyer’s exemption; the exemption for transfer of a principal residence to a related individual; and the recently created Newly Built Home exemption.
The BC government gives qualified first time home buyers a break by allowing them to avoid the tax on their first purchase. There are several requirements to meet before qualifying to use this exemption:
The BC government implemented an exemption from property transfer tax for buyers of newly built homes. There are certain criteria that must be met to qualify that mirror the first time home buyers criteria. The key difference is that the price can be up to $750,000.00 with a sliding scale up to $800,000.00.
For more information on the First Time Home Buyer exemption, click here
For more information on Property Transfer Tax, click here
For more possible exemptions from this tax, click here