First Time Home Buyers’ Program

October 27, 2015 | Published by

First Time Home Buyers’ Program

If you are buying your very first home, there is some more good news! In British Columbia we have the First Time Home Buyers’ Program, which reduces or eliminates the amount of property transfer tax you have to pay.

What if I am buying the home jointly with someone who isn’t a first time home buyer?

Well, if one or more of the purchasers does not qualify, only the percentage of interest that the first time home buyer has in the property is eligible.

Let’s give you an example.

If you qualify and purchase a property with a fair market value of $500,000 with another person who does not qualify, you would still qualify! If you owned a 50% interest in the property, 50% of the tax amount would be eligible for the exemption.

Do I qualify?

In order to qualify for a full exemption, you must meet certain criteria at the time your property is registered.

You must:

 

  1. Be a Canadian citizen or permanent resident;
  2. Have never owned an interest in a principal residence anywhere in the world at any time;
  3. Have lived in British Columbia for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years;
  4. Have never received a first time home buyers’ exemption or refund.

 

Your property must:

 

  1. Be located in British Columbia;
  2. Be used as your principal residence;
  3. Have a fair market value of:
    1. $425,000 or less if registered on or before February 18, 2014, or
    2. $475,000 or less if registered on or after February 19, 2014;
    3. be 0.5 hectares (1.24 acres) or smaller.

You may qualify of a partial exemption from the property transfer tax if your property:

 

  1. has a fair market value less than:
    1. $450,000 if registered on or before February 18, 2014, or
    2. $500,000 if registered on or after February 19, 2014;
  2. Is larger than 0.5 hectares;
  3. Has another building on the property other than the principal residence.

To find out more about the First Time Home Buyers’ Program, call Vancouver Downtown Notary at 778-819-8553 or email at [email protected]

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