First-time home buyers received welcome news in yesterday's provincial budget. The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT)* First-Time Home Buyers’ Exemption program, qualifying first-time buyers can now buy a home worth up to $475,000 and avoid paying the PTT. The previous threshold was $425,000.
The partial exemption continues and will apply to homes valued between $475,000 and $500,000.
With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home. The government estimates this measure will cost $8 million in lost tax revenue each year.
The Real Estate Board of Greater Vancouver, together with the BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. In 2005, the government increased the threshold to $325,000 from $275,000.
*The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.
Are you a first time home buyer looking to buy in Metro Vancouver? Will this help you?
Matt Collinge - Century 21 In Town Realty