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First-time buyers can buy a home worth up to $475,000!!!

Posted on May 20, 2014 by Jessica Prasad

PTT (sometimes called PPT) is a sales tax charged by the BC Government on all transfers of Real Estate in BC.

The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.
The partial exemption continues and will apply to homes valued between $475,000 and $500,000.

With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.
Further Example: If two people buy a home together, and one is eligible for the First Time Home Buyers Special rate, and one isn't, then tax will be charged proportionately to their ownership share.
Homeowners who claim the First Time Homebuyers PTT Exemption must live in the home for at least one year after purchasing it.
All types of real estate pay the same PTT rate, whether the property is used, new, or vacant land.
The PTT rate is based on 1% of the first $200,000 of price, and 2% thereafter
(except first time buyers below $475,000).
Homes are not charged PTT on the HST component of the price, for sales where HST or GST applies.

Jessica Prasad