Tax Burden Reduced for First-Time Buyers

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Are you a first-time home buyer?

You are receiving great news today! The provincial government has reduced the tax burden for first-time buyers. This is effective as of February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyer’s Exemption program, qualified first time home buyers can now purchase a home worth up to $475,000. The previous threshold was $425,000.

The partial exemption of this program continues and will apply to homes valued between $475,000 and $500,000.

Government Estimates:

  • 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy a home
  • This measure will cost $8 million in lost tax revenue each year

The Real Estate Board of Great Vancouver (REBGV) and the BC Real Estate Association have actively lobbied to make home ownership for affordable for first-time buyers.

  • 2008, government increased threshold to $425,000 from $375,000
  • 2005, government increased threshold to $325,000 from $275,000

PTT is calculated at a rate of 1% on the first $200,000 and 2% on the remaining value of the purchase price.

For the entire news article from REBGV on the government reducing the tax burden, click here.

This is big news for you as a first-time buyer! If you have any questions regarding the above, please give us a call at 604-588-4466 or email us at info@brokersmart.ca