How does the First Time Home Buyers’ Exemption wok? The Property Transfer Tax (PTT) is a tax of 1% on the first $200,000 and 2% of the remaining value of the purchase price, when the transaction is registered at a Land Title Office.
Qualifying first time buyers may be exempt from the PTT if they meet the First Time Home Buyers’ Program requirements. The buyers must:
· Be a Canadian citizen or permanent resident;
· Have lived in BC for 12 consecutive months before the date of registration, or have filed two income tax returns as a BC resident within the last six years;
· Never owned an interest in a principal residence anywhere in the world at any time; and
· Not have previously obtained a First Time Home Buyers’ Exemption.
In addition:
· The maximum purchase price of the home is $425,000. There is a proportional exemption for homes priced up to $450,000.
· The land may be a maximum of 0.5 hectares or 1.24 acres.
· The mortgage term taken must be at least one year. If the term is less than one year, a rebate may be applied for after the qualifying individual has resided at the residence for 12 months.
· The mortgage financing must be 70% or greater of the purchase price (mortgage financing cannot be from family members).
· The property must be owner-occupied (no rentals or investment properties).
· If the home exists, the buyers must move into it within 92 days. If it is vacant land, the buyer must build and move into the new home within one year.
Please note: You cannot re-qualify as a first time home buyer. This rule may be different from federal programs for first time home buyers (e.g., the Canada Revenue Agency Home Buyers’ Plan).
Source Real Estate Board of Greater Vancouver
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