Property Transfer tax and 1st time Home buyers
Blog by Bettina Reid | March 5th, 2012
To start it's important to know when purchasing a home, any home in BC, the majority of Buyers will have to pay Property Transfer Tax on their new home.
One of the biggest complaints we have heard from clients is that nobody ever explained about this extra cost when purchasing a home. My husband and I can relate because when we moved here to BC our realtor failed to explain to us that we would have to pay property transfer tax. It wasn't until we met with our lawyer that they explained we needed to come up with an extra approximately $6000.00. Thankfully we had money put aside because had we not had that money we wouldn't have been able to complete on the property we had already firmed up on. I don't want to even think of the situation we would have been in if we didn't have that extra money set aside.
To calculate the property transfer tax on your purchase you need to calculate 1% on the 1st $200,000 and 2% on the balance. ex. $500,000 house you would be paying $8000.00 in Property transfer tax.
If you are a 1st time Home buyer as long as you meet the qualifications you will benefit greatly from this tax savings.
In order to qualify you cannot have ever owned a home anywhere in the world, you must be a resident of BC and Canadian citizen or permanent resident. When it comes to the property it must be under $425,000 and you must reside in the home for 1 full year.
For full details on the 1st Home Buyers Plan regarding Property Transfer Tax visit the following link: