Exciting news for first time home buyers in BC! Effective April 1, 2024, changes to BC’s Property Transfer Tax will help first time buyers save more on their property purchase.

What is Property Transfer Tax?

When you purchase or gain an interest in property that is registered at the Land Title Office, you or your legal professional must file a property transfer tax (PTT) return and you must pay property transfer tax, unless you qualify for an exemption.

The general property transfer tax rate is:

• 1% of the fair market value up to and including $200,000
• 2% of the fair market value greater than $200,000 and up to and including $2,000,000
• 3% of the fair market value greater than $2,000,000

Here’s what’s new:

The Property Transfer Tax (PTT) exemption thresholds have increased for first time buyers from $500k to $835k and for qualifying newly built homes from $750k to $1.1M.

What does this mean?

If you qualify as a first time home buyer, or are interested in a qualifying newly constructed home, you will not have to pay PTT if the fair market value of the property falls within the above thresholds, respectively.

Benefits for First Time Buyers

– Increased affordability, allowing access to a broader range of properties.
– Financial relief with potential savings of up to $14,700 during the home purchase.

Benefits for Purchasing New Homes

– More significant exemption for those purchasing newly built homes.
– Financial incentives to consider new construction as a viable option.

Considerations for Sellers

– Increased affordability for buyers may result in a more active real estate market.
– Sellers within the exemption thresholds may find more interest from first time buyers.

Qualifying Factors

In order to qualify for a PTT exemption, buyers and the property being transferred must meet certain criteria. Some of the factors that would be considered:

• Location
• Size
• Use of the property
• The residency of the buyer(s)

Check out the Government of BC website to get more details or speak to a trusted real estate lawyer to avoid any surprises.

📲 604.799.8133⁣
📧 mortgagesbyamytatla@gmail.com⁣
🌐 amytatla.com⁣

Ready to start saving for your first home? The First Home Savings Account (FHSA) is helping Canadians save for a down payment.

Available as of April 1, 2023, this is a great opportunity for current renters and young adults that have never owned a home to start contributing and saving tax free for their down payment.

Some benefits of an FHSA:

• Contributions are tax deductible
• Withdrawal to purchase a home is non-taxable
• Growth is tax free
• Maximum $40,000 contribution room
• Maximum $8,000 contribution per year
• 15 years to grow and use funds for buying a first home

Who can open a First Home Savings Account? To open an FHSA, you must be:

✓ 18 years of age or older
✓ A current tax resident of Canada
✓ A first time home buyer

See the Government of Canada site for more details.

So how much down payment do you need to save? Contact me for a free mortgage consultation!

📲 604.799.8133
📧 mortgagesbyamytatla@gmail.com
🌐 amytatla.com

Continue reading →