With interest rates improving many people are considering getting back into the real estate market.
Recently, the Government of British Columbia announced changes to the First Time Home Buyer and Newly Built Home Property Transfer Tax exemptions.
In BC, Property Transfer Tax (or PTT) is paid by a buyer on most land transfers. There are limited exemptions to PTT, including for first time buyers and those purchasing a newly built home. In order to qualify for these exemptions, buyers and the property being transferred must meet certain criteria.
Effective April 1, 2024, otherwise qualified first time home buyers can take advantage of the first time home buyer exemption if the fair market value of the purchase is $835,000 or less. This is a welcomed increase from the previous limit of $500,000. This can be a significant benefit to buyers of up to $8,000.
Good news is also coming for purchasers of newly built homes.
Also beginning April 1, 2024, qualifying buyers of a newly built home can be exempt from PTT on new builds with a fair market value of up to $1,100,000 – an increase from the previous limit of $750,000 – and partial exemptions are available on new builds up to $1,150,000.
As mentioned, there are several other qualifying factors, such as location, size, and use of the property, and the residency of the buyers that must be considered before applying for a PTT exemption. It’s best to consult with a real estate lawyer early on in your buying process to avoid surprises later on.
If you’re interesting in learning more, you can find more information via the BC Government’s website or contact Stephanie Leong or a member of our experienced real estate law team – we’re here to help.