Good News First Time Home Buyers
Good News - First Time Home Buyers
BC Budget News in February 2008
The BC Budget (February 19, 2008) outlined new BC Provincial Government "Property Purchase Transfer Tax (PTT)" exemptions and regulations.
This means people buying their FIRST home will now qualify for the PTT exemption for a higher purchase price, if they meet the new requirements. The full exemption has been raised to a purchase price of less than $425,000 (from $375,000). A partial exemption applies if the purchase price is more than $425,000 but less than $450,000.
New Higher Exemption
This exemption applies to property purchased anywhere in
What happens if one of the two purchasers is a "second-time" purchaser?
For example, two people are buying a property, and only one of the two buyers is “first time” then 50% of the tax applies, and 50% is exempt, given the purchase price is under $425,000.
What is the rate of tax for "Property Purchase Transfer Tax?"
The property purchase transfer tax rate is 1% on the first $200,000 and 2% on the balance of the fair market purchase price.
Here is more big news...
More changes are big news. If the property is registered on or after February 20, 2008, there is no minimum amount of financing required to qualify (previously the mortgage could only be 70% of the value of the property, with 30% down payment).
Is there a government bulletin for these changes?
The Ministry of Small Business puts out a bulletin PTT 004, revised February 2008. For more details go to www.gov.bc.ca/scr and look under Budget 2008 changes and property taxes to get all the qualifying details.
Or contact me and I’ll assist you...By Claire Andruff