Buyer's Guide » Don't forget
About the Property Transfer Tax
you're getting swept up in the fun and excitement of buying
a home, your REALTOR® will sit you down for a frank talk about
"closing costs," the extra charges and taxes you'll
have to pay on top of the purchase price of your home. The heftiest
of these is usually the Property Transfer Tax, or PTT, but the
good news is that most first-time buyers are exempt from the
Transfer Tax is a tax paid to the British Columbia government
by the purchaser of any piece of real estate in the province.
It's calculated at 1% of the first $200,000 of the purchase
price, plus 2% of any remainder. For example, on a $275,000
house, the PTT totals $3,500.
need to complete a Property Transfer Tax Return, which your
lawyer or notary public can assist you with. The tax is payable
on the date the purchase is completed at the Land Title Office.
First Time Home Buyer's Exemption
First-time buyers are exempt from the PTT, but only if all
the following conditions apply:
home was bought for less than $425,000.
amount borrowed to finance the home must equal 70% or more
of the purchase price, and cannot include amounts borrowed
from relatives or friends.
purchaser must be a Canadian citizen or permanent resident
and must have resided in B.C. for 12 months prior to the purchase.
purchaser must not have owned an interest in any principal
residence at any time in the past.
- If the
property purchased is vacant land, construction of a residence
must be completed within the year following registration of
purchasers must occupy the property as a principal residence
within 92 days of the completion date, and for a minimum of
one year afterward.
a few other complex conditions governing PTT exemptions, but
they don't affect most home buyers. Your REALTOR® can supply
you with complete details.
» Property Transfer Tax Guide on BC Gov Website click here