BC Property Transfer Tax Exemption Rises to $835,000 Purchase Price

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Massive Change to First Time Home Buyer Property Transfer Tax Exemption

In a groundbreaking move to tackle the soaring housing prices and bolster affordability, the Government of British Columbia has unveiled three significant changes to the Property Transfer Tax (PTT) framework.

These monumental adjustments, slated to be implemented as part of the 2024 provincial budget, aim to provide substantial relief to first-time homebuyers and individuals purchasing new homes.

Here’s a breakdown of the transformative reforms:

Enhanced British Columbia First-Time Homebuyers’ Exemption

Beginning April 1, 2024, the threshold for eligibility under the first-time homebuyers’ exemption will undergo a remarkable increase, soaring from a fair market value of $500,000 to an impressive $835,000.

This means that the initial $500,000 of a property’s value will be completely exempt from the tax.

Additionally, properties valued below $500,000 will enjoy full exemption.

With an estimated 14,500 beneficiaries — twice the number before — this move promises substantial savings of up to $8,000 for first-time homebuyers.

See the following BC govt link for details HERE

Expanded BC Newly Built Home Exemption

For those purchasing newly built homes to serve as their primary residence, the exemption threshold will witness a significant boost, escalating from $750,000 to an impressive $1.1 million in fair market value.

Properties valued between $1.1 million and $1.15 million will experience a phase-out range for the exemption.

This game-changing amendment, also effective from April 1, 2024, is poised to provide much-needed relief to prospective homeowners eyeing new properties.

PTT Exemption for Qualifying Secured Purpose-Built Rental Housing Buildings

In a move aimed at catalyzing the development of rental housing, a groundbreaking PTT exemption is set to be introduced for purchases of new qualifying secured purpose-built rental housing buildings.

These buildings, mandated to house at least four apartment units, remain non-stratified, and are committed to rental usage for a minimum of 10 years.

The exemption, applicable to transactions between January 1, 2025, and December 30, 2030, aims to address the challenge of home ownership’s inaccessibility by promoting the construction of the much-needed “missing middle” rental housing segment.

With most first-time homebuyers under 35 years old, and urban areas poised to reap significant benefits from the increased threshold, these changes mark a pivotal step towards fostering a more inclusive and accessible housing landscape in British Columbia.

Conclusions and Further Thoughts

Stay tuned for further updates as we continue to navigate the evolving real estate landscape in British Columbia and beyond. Hubermortgage.com remains committed to keeping you informed and empowered in your homeownership journey.

Contact Huber Mortgage to talk through your options!    Over 50% of my clients are self-employed! Contact HERE.

Sincerely,

Michael

PS – One of my hobbies is blogging about mortgages, debt and government policy.  During the day I’m a MORTGAGE BROKER in Kelowna, BC!

Check out the Huber Mortgage Home Buyers Guide HERE

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