Property Transfer Taxes & First Time Home Buyers Program (FTHB)
Property Transfer Tax (PTT) is a Provincial registration tax that you pay whenever you acquire an interest in a property and only then. It is different than property tax which you pay on an annual basis.
It is equal to :
1% on the first $200,000 of the final purchase price and 2% on the balance
If you are a First Time Buyer, you may qualify for the First Time Buyer's Program, which provides a tax exemption from the PTT. To do so, you must meet ALL of the following criteria:
- Must be a Canadian citizen or a permanent resident
- Must be a resident of British Columbia for 12 consecutive months immediately prior to the date of registration of the transfer, or have filed 2 income tax returns as a British Columbia resident within the last six years,
- Must have never, at any time, owned a principal residence anywhere in the world
- Must have not previously received an FTHB exemption or refund.
- Must occupy the residence as his/her principal residence within 92 days of registration of the property; for the full exemption, the purchaser must then continue to use the residence as his or her principal residence for at least one year after the date the transfer was registered
- The value of the property must not exceed $425,000 (new threshold as of Feb. 2008).
Where a property has a fair market value of up to $25,000 more than the threshold amount, the property is eligible for a partial exemption.
Effective February 20, 2008, all purchasers (including persons who purchased their property before February 20, 2008) are free to pay down any amount owing on their mortgage.
For more detailed information, please go to: http://www.sbr.gov.bc.ca