In British Columbia, a transfer of ownership of the property triggers property transfer tax. It is calculated as follows:
1% on first $200,000
2% on the remaining
For example, the property purchase price is $535,000
Your property transfer tax is 1% x $200,000 + 2% x ($353,000) = $9060
First time home buyers, since 2008 if purhcasing an owner occupied home, up to purchasing price $425,000, a first time home buyer is exempt from paying the tax but will need to show having sufficient fund to close (1.5% of purchasing price).
Q. The new HST in place in July 2010, does it affect my exemption?
Yes. Originally, one can buy a home with full exception if the price is <$425,000 (excluding GST 5%). Now, the $425,000 price would include 7% of the 12% HST. Therefore, if you are buying a new home, make sure the price will be under $425,000 including HST (and take away GST) and under $450K for partial exemption.
Filed under: FAQ, First Time Home Buyers
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