New property transfer tax changes affect BC home buyers
The latest BC government budget announced changes in how the property transfer tax is charged. Here is a summary of the changes:
- -The property transfer tax will remain the same until the purchase price exceeds $2 million. Currently, the tax rates are 1% of the first $200,000 and 2% of every dollar above $200,000. Now, at the $2 million threshold, the rate will be 3% of every dollar over $2 million.
- -There is a new program for Canadian citizens and permanent residents purchasing a new home with a value of less than $750,000.
- -The first-time homebuyers program remains unchanged with a full exemption up to $475,000 and a partial exemption up to $500,000.
What impact will this have on the real estate market?
Virtually none. Those buying new homes will save some money. Those buying homes for more than $2 million will have to pay slightly more, but it will surely not affect their ability to buy the home that they want.