Property Transfer Tax and The First Time Home Buyers' Program
Property transfer tax is paid each time you register a property at the Land Title office. If you are purchasing your first home, you may qualify for an exemption form the property transfer tax if certain requirements are met.
WHAT ARE THE REQUIREMENTS?
Purchasers qualify for the exemption if:
➢ You are a Canadian Citizen or a permanent resident as determined by Immigration Canada
➢ You have lived in BC for 12 consecutive months, or you have filed 2 income tax returns as a BC resident during the 6 years before the date you register the property
➢ You have never owned an interest in a principal residence
➢ You have never received a first time home buyers’ exemption or refund.
Property you purchase qualifies if:
➢ The fair market value of the property is not more than the current threshold of $425,000
➢ The land is 0.5 hectares (1.24 acres) or smaller
➢ The property will only be used as your principal residence
HOW DO I APPLY FOR THE EXEMPTION?
You apply for the exemption when you register the property at the Land Title office. Generally, your lawyer registers the property and applies for the exemption on your behalf. If you do not apply for the exemption when you register the property at the Land Title office, you can apply for a refund of the property transfer tax you pay within 18 months of the date you register the property. It is your responsibility to make sure the ministry receives all of the necessary information.
For more information and a full list of the requirements for this program, please see Bulletin PTT 004 “First Time Home Buyers’ Program” available on the website www.gov.bc.ca/sbr
Information from the BC Gov. brochure "Property Transfer Tax and the First Time Home Buyers' Program" February 2008.