Purchasing your first home? Make sure you know the qualifications for having being exempt of the property transfer tax!
Property Transfer Tax Exemption
When purchasing a home, buyers are responsible for paying property transfer tax, a tax charged for the changing of title from one person to another. This upfront expense is 1% on the first $200,000 of the homes assessed or purchase value (whichever is higher), and 2% on the remainder. Fortunately, first time home buyers can be exempt if the property they purchase meets certain conditions. This could result in savings up to $6500.
To qualify for this exemption, the following conditions must be met.
-be a Canadian citizen or permanent resident
-have lived in BC for 12 consecutive months or filed at least 2 tax returns as a BC resident in the previous six years
-have never owned a principal residence anywhere in the world at any time
-have never received a first time home buyers’ exemption or refund
-be located in BC
-only be used as a principal residence
-have a fair market value of $475,000 or less
-be 1.24 acres or smaller
What if my partner has owned property before, but I am a first time home buyer?
You will still be partially exempt of the property transfer tax! The level of your exemption will be determined by your interest in the property. This means if you have a 50% interest in the property, you will pay 50% of the property transfer tax.
For more information on Property Transfer Tax Exemption, click here.
If you have any other questions related to this article, or any other mortgage related topics, please either send me an email at firstname.lastname@example.org, or give me a call at 778-822-5466. I am ALWAYS available for you!