This morning the BC government announced major changes to their budget, including changes to the BC Property Transfer Tax (PTT) to help deal with housing affordability. Here is what we know so far:
1. No Change to First Time Buyers Property Transfer Tax Exemption
There are no changes to the first time home buyer exemption limits – the property transfer tax exemption for first-time buyers still exists.
2. New Property Transfer Tax Exemption for New Homes Up to $750,000
All buyers (whether first time buyers or not) no longer pay PTT on purchases of NEW homes up to $750,000 in value; there is a partial exemption for homes between $750,000.00 and $800,000.00. Note that this new property tax exemption is still only available to buyers who are Canadian citizens or permanent residents.
3. PTT for Homes Over $2 Million
PTT has changed so that there is now a 3% tax on amounts over $2,000,000.00. The 3% tax is only paid on the amount over $2,000,000.00, not the full price.
BC Finance Minister Mike de Jong says that purchasers of new homes can save up to $13,000 which will be compensated by the increase in transfer tax from 2 to 3% on the fair market value of properties over $2 million. De Jong says that these are significant dollars and will hopefully incentivize construction of more homes.
The above changes to Property Transfer Tax go into effect today and will apply to all deals closing today and going forward.
For more information about Property Transfer Tax, check out my previous blog posts listed below or call or text me directly at 778-316-4290.
I would be happy to help answer all of your questions regarding these changes.