25 Feb Breaking News: BC Property Transfer Tax Changes
The BC Minister of Finance has announced several changes to the Property Transfer Tax program, which came into effect on February 17th, 2016. The changes affect certain newly-built homes under $750,000, first time home buyers, luxury homes over $2 million, buyer’s country of residence reporting and ownership of properties held by corporations.
The changes include:
- A property transfer tax exemption for Canadian citizens and permanent residents who purchase newly-built homes, condos and townhouses under $750,000. Purchasers must live in the property for at least one year. This is a potential savings in closing costs of up to $13,000;
- A one percent increase in property transfer tax to three percent for homes which are sold over the $2 million mark;
- The first time home buyers exemption will remain in place for homes under $475,000;
- Buyers will need to start disclosing their country of residence in all property transactions;
- The beneficial ownership of properties held by corporations will also be tracked.
Why?
According to the BC government, it “is acting to help the housing market respond to high demand for homes, which is resulting in rapidly rising prices, particularly among single-family homes in the Lower Mainland.” The changes are designed to boost the supply of new home construction and give people a helping hand to enter the market, said Finance Minister Mike de Jong.
How could these changes affect you? Book an appointment to find out.
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