Property Transfer Tax: BC Government Announces Changes

(March 02, 2017 )

When buyers are out looking at condos and working on their budgets, they sometimes don’t always take into account the additional costs that can go with that purchase. For example, a buyer will have to account for any inspection costs, any mortgage closing costs, and the legal fees, including the property transfer tax on any resale purchase (i.e. not a new condo.)

However, buyers may qualify for a portion of an exemption from those property transfer taxes, including on new construction purchases, and if you’re a first-time buyer, then you may qualify for a full exemption. On February 21, 2017, the provincial government announced its 2017 budget, and a change to the property transfer tax limits was one of the included items. Effective as of February 22, 2017, on all purchases completing after this date, the limit for first-time buyers increased from $475,000 to $500,000, and the partial exemption range was raised to $500,000-$525,000.

To qualify for a full exemption, the first-time buyer, at the time of completion, must be:
  • a Canadian citizen or a permanent resident
  • a resident of BC for the last 12 consecutive months prior to the completion date or filed at least two income tax returns in BC in the last six years
  • a first-time buyer, never owning another property anywhere in the world
  • a recipient of the exemption for the first time.
The property must be:
  • located in BC
  • used only as a principal residence
  • have a fair market value of $500,000 or less
  • be 1.24 acres of smaller.
Are you a first-time home buyer, or even just a buyer in general, and aren’t sure how the property transfer tax affects you and your purchase? Give The Condo Experts a call and we’ll give you the information you’re looking for.

Until next week.

- Kaley Walls