Property transfer tax changes in BC

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Property transfer tax changes in BC

The government of BC recently announced a few changes to the property transfer tax rules. The changes are fairly simple. Below is a brief outline of the changes and current rules for payment of the property transfer tax in BC.

New homes – All buyers (whether first time buyers or not) no longer pay property transfer tax on purchases of brand new homes up to $750,000 in value. You must be a Canadian citizen or a permanent resident and the home must be owner occupied. There is a partial exemption for new homes between $750,000 and $800,000.

Used homes – There are no changes to the first time home buyer exemption limits for used homes. If you are purchasing a used home that you will live in and have never owned a home anywhere in world then you are most likely exempt from paying the property transfer tax. The price of the home must be less than $475,000. There is a partial exemption on the tax on prices between $475,000 and $500,000. If the price is over $500,000 then the full tax is payable regardless of whether you are a first time home buyer or not. The property transfer tax rate is 1% of the first $200,000 and 2% of the rest of the price.

High end homes – The property transfer tax has changed so that there is now a 3% tax on amounts over $2,000,000. The 3% tax is only paid on the amount over $2,000,000 and not the full price.

As always, you should check with your lawyer or notary to confirm the tax applicable for your particular situation.

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About the Author:

Alex Kotai
Alex Kotai has worked in the mortgage lending business for over 10 years. His career started at HSBC Bank Canada where he spent most of his time in senior management roles which involved training and managing the sales staff at his branch. After leaving HSBC, Alex decided to open his own mortgage brokerage firm, Your Mortgage Source. Through his company, Alex has access to many lenders across the country with a very expansive list of products.