Property Transfer Tax
Property transfer tax is a land registration tax payable when an application is made at any Land Title Office in British Columbia to register changes to a certificate of title.
*Property transfer tax should not be confused with property tax. Property tax is the amount paid on an annual basis for services received from local government.
Tax Rate: 1% on the first $200,000 plus 2% on the balance.
If you are a first time home-buyer you may be eligible for an exemption from the property transfer tax if the fair market value of the property is less than $375,000, anywhere in British Columbia.
A proportional exemption is provided for eligible residences that have a fair market value of up to $400,000 (or $25,000 above the threshold). Your lawyer or notary will complete and submit the return on your behalf.
The following conditions must be met to qualify for the first time home buyers’ exemption:
- Must be a Canadian Citizen or a permanent resident
- Each person applying for the exemption must have resided in BC for at least 1 year prior to the registration date
- Each purchaser applying must not have previously owned an interest in a principal residence anywhere and must not have previously obtained a first time home buyers’ exemption
- The amount borrowed to finance the purchase and registered against the title must be 70% or greater of the fair market value
- The mortgage must have a term of at least one year
- The purchaser must occupy the property as their principal residence within 92 days of the date of registration
