BC’s First Time Home Buyers Program
If you are a First Time Home Buyer in BC, you may be eligible for the tax exemption program which will reduce or eliminate the amount of Property Transfer Tax you pay at closing.
Wait, what’s Property Transfer Tax!?
Property Transfer Tax is a Provincial tax applied each time a property is purchased. It is calculated at 1% on the first $200,000 of the purchase price, 2% on the balance over $200,000 up to $2,000,000 and 3% above $2,000,000! If you are purchasing a $500,000 home, youwould incur $8,000 in Transfer Taxes at closing! This is a big deal, as this amount cannot be “added” to your mortgage, you need to have the funds to pay it. So being able to save this cost is a great advantage for First Time Buyers!
There are limits to the exemption such as purchase price, intended use for the property and more, you can review the full rules for the First Time Home Buyers’ Program here: