Vancouver First Time Home Buyers Advice Episode 4 – How to Efficiently Search for Properties
Property Transfer Tax (PTT) and Vancouver Real Estate
I get questions all the time about BC’s Property Transfer Tax and how it applies to Vancouver Real Estate. Here’s a simple explanation.
BC’s Property Transfer Tax – What is it?
Property Transfer Tax (PTT) is a British Columbia tax on the sale or transfer of ownership of any residential real estate property in the Province.
How Much is the PTT?
BC’s PTT rate is 1% on the 1st $100,000 and 2% of the balance of the purchase price of the any property sold in BC.
For example: If you buy a property for $300K, you will have to pay $4000 in PTT.
When do you pay PTT?
Property Transfer Tax is paid on the Completion Date when the title to the property is transferred to the Buyer and the Seller receives their money.
Who pays PTT?
Everyone, EXCEPT First time home buyers who meet the following criteria:
- Canadian Citizens or Permanent Residents determined by Immigration Canada.
- Lived in British Columbia for 12 consecutive months immediately before the date registration of the property, or have filed 2 income tax returns as a British Columbia
resident during the 6 years before the date the property is registered - Never owned a property or an interest in a principal residence anywhere in the world at anytime
- Never received a first time home buyers’ exemption or refund.
- The fair market value of the property is less than $425,000 (This was written in June 2010, this number can and will change)
- The Lot has to be 0.5 hectares (1.24 acres) or smaller, and
- The property can only be used as a principal residence.
If the property meet some these criteria, there may be a partial exemption.
Here is the PTT First Time Home Buyers Exemption Criteria on the BC Government Website.
Property Transfer Tax Exemption First Time Home Buyers in British Columbia
How is PTT paid?
The lawyer or notary that is helping you transfer ownership of the property will apply and organize the documentation.
I welcome questions, thoughts, and comments!
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