The Province of BC announced that effective today it will increase the exemption levels for the Property Transfer Tax (PTT) to $475,000.
The previous exemption was up to $425,000 with a partial exemption levels on purchases between $425,000 – $475,000.
With this new changes, it means a full exception up to $475,000 and a partial exemption between $475,000 – $500,000.
The Property Transfer Tax is calculated as follows: 1% on the first $200,000 and 2% on the balance on the purchase price.
Previously if a first time home buyer was purchasing a home of $475,000, they would have to pay $7,500 for the property transfer tax. This is a cost that can’t be added to the mortgage amount and it would have to be additional money the purchasers had to come up with besides the down payment.
This is of great step in assisting First Time Home Buyers to purchase their first home.