The provincial government announced that they are making changes to the First Time Home Buyers Property Transfer Tax exemption rules in B.C. as of February 19, 2014.
The government previously allowed first time home buyers to be exempt from paying property transfer tax on a purchase price of $425,000.00 or less or a partial exemption if the purchase price was between $425,000.00 to $450,000.00.
As of February 19, 2014, these amounts have increased and a first time home buyer will be exempt from paying property transfer tax if the purchase price is $450,000.00 or a partial exemption will be calculated if the purchase price is between $475,000.00 to $500,000.00.
For buyers who are not first time home buyers, the calculation is as follows:
1% on the first $200,000.00 and 2% on the remainder.
Note: If you have owned property on leased land, not freehold, you can potentially be exempt from paying property transfer tax when buying your first property on freehold land.
Contact me for more information on Property Transfer Tax in British Columbia.
Terri Ann Novello, REALTOR
Century 21 Assurance Realty Ltd.
251 Harvey Avenue
Kelowna, BC V1Y 6C2