Property Transfer Tax Exemption Changes You Might Have Missed

Today we're going to talk about some exciting changes to the property transfer tax exemption for first time homebuyers.

The government has finally increased the threshold for the maximum purchase price for the first time home buyer exemption of property transfer tax. It has been set at $500,000 for way too long, and most of our markets have exceeded that, making it hard for first time homebuyers to qualify for this exemption. And the cost can be substantial. So this is really exciting and welcome news.

Property transfer tax, for those of you that don't know, is a tax that we're required to pay to our government any time we buy property in British Columbia and in most other provinces, it is a percentage of the purchase price that is required to be paid and it can be substantial.

So now, with the new rule changes effective April 2024 for first time homebuyers are exempt from property transfer tax up to a purchase price of 500,000, and will receive a partial exemption up to a maximum of $835,000, making it far more likely that you're going to find a property and actually save some money for your first home. As always, give our team a call and we'll give you more details on your specific situation.