First Time Home Buyers’ Program
First Time Home Buyers’ program reduces or eliminates the property transfer tax when you purchase your first home. If requirements are met, first-time homeowners can avoid a tax bill of up to $8,000. Along with meeting other requirements, the home being purchased must be worth less than $525,000.
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 you may be eligible for either a full or partial exemption from the tax.
If one or more purchasers don’t qualify, only the percentage of interest that the first-time homebuyer(s) have in the property is eligible. For example, if you acquired 60% interest in the property, and another person acquired 40% interest but only you meet the qualifications, only your 60% would receive the exemption.
To qualify for a full exemption, at the time the property is registered you must:
- Be a Canadian citizen or a permanent resident
- Have lived in BC for at least a year immediately before the date you register the
- Filed at least 2 income tax returns as a BC resident in the last 6 taxation years
- Have never owned a registered interest in a property that was your principal residence
anywhere in the world at any time
- Have never received a First Time Home Buyers’ exemption
And the property must:
- Only be used as your principal residence
- Have a fair market value of $500,000 or less
- Be 0.5 hectares (1.24 acres) or smaller
You may qualify for a partial exemption from the tax if the property:
- Has a fair market value less than $525,000
- Is larger than 0.5 hectares
- Has another building on the property other than the principal residence
For more information, visit the Government of British Columbia’s website: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers