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First Time Home Buyers and Property Transfer Tax

Am I a first-time home buyer?

First-time home buyers are individuals who, in general terms:

1. have not previously held a registered interest in a principal residence anywhere in the world at any time;
2. have never received a first-time home buyers’ exemption or refund;
3. have continuously lived in British Columbia for at least one year immediately before the registration date or have filed two income tax returns as a British Columbia resident
during the six years before the registration; and
4. are Canadian citizens or lawfully admitted to Canada for permanent residence.

Do I qualify for the property transfer tax exemption?

First-time home buyers who purchase qualified property can be exempt from property transfer tax.

Qualifying properties are, generally:

1. properties acquired for and used as the purchaser’s principal residence for at least one year following the registration date;
2. properties of not more than 0.5 hectares (1.24 acres); and
3. properties (including land plus improvements) with a fair market value not exceeding $475,000 ($425,000 between February 20, 2008 and February 18, 2014 and $375,000 prior to February 20, 2008) regardless of where located in the province. (A proportional exemption is also available where the fair market value exceeds $475,000 but not $500,000.)

At current rates, if you purchase a property for $475,000 that is fully eligible for the first time home buyers exemption, you can save up to $7,500 in property transfer taxes. Speak to a lawyer today to determine if you qualify.

For more information on whether you qualify visit: http://www2.gov.bc.ca/gov/topic.page?id=BBD16E2D7C1841A7BBD420E3AC5380F1

The material contained in this article/video/blog is for your general information only and is not intended to be, nor should it be taken as legal advice.

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