PROPERTY TRANSFER TAX ON BC REAL ESTATE PURCHASES EXCEPTION FOR FIRST TIME HOME BUYERS
If you are purchasing a home for the first time in BC, you may qualify for an exemption from the PPT (Property Transfer Tax).
As a Purchaser you are exempt if:
- You must be a Canadian Citizen, or Permanent Resident (as defined by Immigration Canada).
- You must lived for 12 months in British Columbia consecutively prior to your date of a property registration.
- You have not ever owned a principal residence anywhere in the world at anytime.
- you have never received an exemption or refund as first time home owner in BC before.
The Property qualification:
- The value of the property is not more than $425,000
- The land size is no larger than 1.24 acres (0.5 hectares)
- The Purchased property will be your principal residence.
Mortgage financing you receive if:
- It is at least 70% of the value of the property
- The mortgage term of at least 1 year
- The mortgage financing is registered with 7 days of your property registration date.
Requirements to Keep the exemption
- You need to occupy the home within 9 days of the date of registration of the property in your name and continue to live in the home as your principal residence for min of 12 months after registration.
- If you bought vacant land, a principal residence will have to be built within 1 year and you will need to reside there for the reminder of the first year.
- During the 1st year, there are limitations on how much you can reduce the mortgage or financing. the ministry after one year will send a letter to you asking for details of the financial account that you have registered against the property for your 1st year. it will be your responsibility to make sure the Government ministry receives all the financial information.if you do not report the financial details required, you will be assessed for the Property tax due
- You can qualify for a partial exemption if you pay down your financing more than the limitation amount or if you move off the property within the 1st year.
Source: BC Government PPT Brochure November 2007
FOR FURTHER DETAILS FOR FIRST TIME HOME BUYER"S PROGRAM GO TO THE GOVERNMENT WEB SITE Property Transfer Tax http://www.rev.gov.bc.ca/business/Property_Taxes/Property_Transfer_Tax/ptt.htm
Telephone (250) 387-0604 email: PTTENQ@gov.bc.ca
HAVE YOUR BEST YEAR EVER IN 2012 !
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Fred Carver
Re/Max Camosun
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Direct 250-598-2963
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Hi Katerina..With first time home buyers it's limited to mainly Condo's, although parents have been helping their children to buy homes in Victoria BC.
Cheers, be safe
Does 'principal residence' mean where I live? I have previously owned income property but have always rented my residence. Do I still qualify?
Hi John...Good Question, Best I understand the test is did you own a home anywhere in the World. It maybe a fine line, regarding other real estate, I'll need to ask a lawyer. Did you have the rental property in your name or a company name?