THERE'S MORE THAN THE DOWN PAYMENT
Common Closing Costs:
Generally, GST is not payable on used residential property BUT payable when buying a newly built home.
Property Transfer Tax (PTT):
Property transfer tax is a sales tax charged by the BC Government on all transfers of real estate in BC.
The PTT rate is determined as follows:
1% on the portion of the price under $200,000
2% on the portion of the price between $200,000 and $2,000,000
3% on the portion of the price over $2,000,000
Of course, there are exceptions to this rule as well...
A common exception is the First Time Home Buyer Exemption.
First time home buyers pay no PTT on homes with a purchase price of $475,000 or less, but they pay full PTT on homes with a purchase price above $500,000.
If two people buy a home together and one is eligible for the first time home buyers' exemption and one is not, the PTT will be charged proportionately to their ownership shares.
Purchasers claiming the first time home buyers' exemption must live in the home for at least the first year after purchasing the home.
Newly Built Home Exemption:
The newly built home exemption reduces or eliminates the amount of PTT a purchaser pays when purchasing a newly build home, including houses, apartments and townhouses.
The purchaser is not required to be a first time home buyer to qualify for the newly built home exemption.
Purchasers buying a newly built home pay no PTT on homes with a purchase price of $750,000 or less, but they pay full PTT on homes with a purchase price above $800,000.
Purchaser claiming the newly built home exemption must live in the home for at least the first year after purchasing the home.
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