Your Path to Property Transfer Tax Relief

Purchasing your first home is an exciting milestone, but the financial aspects can be daunting. The good news is, if you're a first-time home buyer in British Columbia, the First-Time Home Buyers' Program can significantly ease the burden of property transfer tax. Let's dive into the details of this program and unravel some key considerations.

Understanding the Basics:

The First-Time Home Buyers' Program aims to reduce or eliminate the property transfer tax for those buying their first home. Eligible individuals may qualify for either a full or partial exemption from this tax, depending on certain criteria.

Ownership Percentage Matters:

But what happens if only one person in a property ownership duo is a first-time home buyer? The property transfer tax is calculated based on the registered ownership of the property. For instance, if you own 60% of the property and another person owns 40%, but only you meet the qualifications, only your 60% would be eligible for the exemption.

Do You Qualify?

To be eligible for a full exemption, several conditions must be met at the time the property is registered:

• Be a Canadian citizen or permanent resident
• Have lived in B.C. for at least one year immediately before the registration date
• Have filed at least 2 income tax returns as a B.C. resident in the last 6 taxation years immediately before the registration date
• Have never owned a registered interest in a property that was your principal residence anywhere in the world at any time
• Have never received a first-time home buyers' exemption or refund

Additionally, the property must:

• Only be used as your principal residence
• Have a fair market value of $500,000 or less
• Be 0.5 hectares (1.24 acres) or smaller

For those who don't meet all the criteria but still fall within certain parameters, a partial exemption may be available.

Partial Exemptions Explained:

You may qualify for a partial exemption if the property:

• Has a fair market value less than $525,000
• Is larger than 0.5 hectares
• Has another building on the property other than the principal residence

Your Next Steps:

If you're considering taking advantage of the First-Time Home Buyers' Program, ensure you meet the eligibility criteria.

For a detailed guide and to check your eligibility, reach out to us today!