Great news for first time home buyers, especially those who have a closing date of April 1, 2024 or later, for a property with a purchase price of $835,000 or less. You've just saved $8,000 in your property transfer taxes!
The BC government announced this change Thursday, February 22, 2024, while unveiling their 2024 Budget.
If you're a first-time home buyer and new to house hunting, this is a program you want to look into.
What is it?
The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when purchasing your first home.
How does it work?
If you qualify, you could be eligible for a full or partial exemption of property transfer tax.
How do I qualify?
To qualify for this program, you must:
be a Canadian Citizen or permanent resident.
have lived in BC for at least a year immediately before the date you register for the property, or, have filed at least two income tax returns as a BC resident in the last six taxation years immediately before the registration date.
have never owned a registered interest in a property that was your principal residence anywhere in the world at any time.
have never received a first-time home buyers’ exemption or refund.
For the property to qualify for this program, it must:
only be used as your principal residence.
have a fair market value of $835,000 or less (starting April 1, 2024).
be 0.5 hectares (1.24 acres) or smaller.
contain only residential improvements.
If you and the property meet all the above listed requirements, you’ll be exempt from property transfer tax on the first $500,000 of the purchase price of the property.
A few things to note
If you're purchasing this home with others, and one or more of them don't qualify, only the percentage of interest that the first-time home buyer(s) have in the property is eligible for the exemption.
Partial exemptions may be available for properties with a fair market value between $835,000 and $860,000 (starting April 1, 2024).
Foreign entities and taxable trustees are not eligible for the exemption.
You must move into your new home within 92 days of the date that the property was registered.
You must continuously occupy the property as your principal residence for at least one full year from the registration date.
Read more here: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers
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