Buying a home can be exciting and overwhelming at any point in life, for first time home buyers it can be even more so. As a first time home buyer you want to ensure you have a knowledgeable and attentive Real Estate Agent by your side every step of the way.
As a first time home buyer you want to make sure you know about the benefits you can take advantage of to make your first purchase just a little more affordable. One of the most significant benefits for First Time Home Buyers can save you up to $6500.00.
First Time Home Buyers' Program
The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
If one or more of the purchasers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.
For example, if you qualify and purchase a property with a fair market value of $400,000 with a person that doesn’t qualify you would still qualify. If you owned a 60% interest in the property, 60% of the tax amount would be eligible for the exemption.
Do I Qualify?
- be a Canadian citizen or permanent resident
- have lived in B.C. 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
- have never owned an interest in a principal residence anywhere in the world at any time
- you have never received a first time home buyers' exemption or refund
and the property must:
- be located in B.C.
- only be used as your principal residence
- have a fair market value of $425,000 or less
- be 0.5 hectares (1.24 acres) or smaller
You may qualify for a partial exemption (PDF) from the tax if the property:
- has a fair market value less than $450,000
- larger than 0.5 hectares
- has another building on the property other than the principal residence
If you don’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the tax. To apply for a refund call (250) 387-0604.
The above information has been taken from the BC Provincial Government web site. For more information on exemptions contact your Lawyer or Notary.
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Morgan DuVernet and Kelsie Struch
Century 21 In Town Realty