Hello dear friends and family. I get asked about “PTT and GST for New Homes and First Time Home Buyers” quite often, so I wanted to write a quick summary about them and the requirement for exemption.
GST is on new homes only and calculated as 5% on Purchase Price, with rebate of 36% of GST on homes less than $350,000, and partial rebate on homes between $350,000 and $450,000.
GST is on new homes only and calculated as 5% on Purchase Price, with rebate of 36% of GST on homes less than $350,000, and partial rebate on homes between $350,000 and $450,000.
Property Transfer Tax (PPT) calculated as 1% on first $200,000, 2% on remaining amount.
The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.If one or more of the purchasers don’t qualify, only the percentage of interest that the first-time home buyer(s) have in the property is eligible.
To qualify for a full exemption, at the time the property is registered you must:
- be a Canadian citizen or permanent resident
- have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
- have never owned an interest in a principal residence anywhere in the world at any time
- have never received a first time home buyers' exemption or refund
And the property must
- be located in B.C.
- only be used as your principal residence
- have a fair market value of:
- $475,000 or less if registered on or before February 21, 2017, or
- $500,000 or less if registered on or after February 22, 2017
- be 0.5 hectares (1.24 acres) or smaller
You may qualify for a partial exemption from the tax if the property:
- has a fair market value less than:
- $500,000 if registered on or before February 21, 2017, or
- $525,000 if registered on or after February 22, 2017
- is larger than 0.5 hectares
- has another building on the property other than the principal residence
When you register an interest in a property you must:
- File your tax return(s)·
- Pay all property transfer taxThe tax return(s) and payment must be submitted together at the Land Title Office.
In order to get PTT refund, you must complete a form and apply for a refund after the one year anniversary and withing 18 months from the date you registered the property at the land title office. You can find the Refund form here:
The info. above is for estimation purposes only, please consult a professional to receive accurate and objective advice.