BC Property Transfer Tax

Jeff Evans

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.

Author: Jeff Evans

I am a mortgage broker, hair salon owner, squash player, student, and husband, aspiring to do good for people.

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