The First Time Home Buyers’ Program

If you are purchasing your first home, you may qualify for an exemption from property transfer tax if certain requirements are met. These requirements are …

As a first time home purchaser, you qualify for the exemption if:

• You are a Canadian Citizen or a permanent resident as determined by Immigration Canada,
• You have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property.
• You have never owned an interest in a principal residence anywhere in the world at anytime and you have never received a first time home buyers’ exemption or refund.

The property you purchase qualifies if:

• The fair market value of the property is not more than the current threshold of $425,000,
• The land is 0.5 hectares (1.24 acres) or smaller
• The property will be used as your principal residence.

* If the property does not meet all of these requirements you may still qualify for a  partial  exemption.

How do I apply for the Property Transfer Tax Exemption?

• You apply for the exemption when you register the property at the Land Title office.
• Generally, a lawyer or notary public registers the property and applies for the exemption on your behalf.
• The Land Title office sends your application to the Ministry of Small Business and Revenue to verify your eligibility.
• If you do not apply for the exemption when you register the property at the Land Title office, you can apply for a refund of the property transfer tax you pay within 18 months of the date you register the property.

Important: Make sure you do not apply for the exemption if you have owned an interest in a principal residence anywhere in the world at anytime. If you do this, you will be assessed for the tax due and an additional penalty equal to the tax due.

Are there any additional requirements to keep the Property Tax Exemption?

• You need to occupy your home within 92 days of the date you register the property and continue to use the property as your principal residence for at least 1 year after registration.
• If the land is vacant and bare when you purchase the property, a principal residence must be built and occupied by the owner on the property within 1 year of the registration date.
• You must occupy the property for the remainder of that year.
• The fair market value of the land, plus the cost of building any improvements on the land cannot exceed the current threshold of $425,000.

The ministry will send you a letter at the end of the first year you own the property. If your property purchase was registered on, or after, February 20, 2008, the letter will ask you:

• To confirm that the property is still your principal residence.
• If your property purchase was registered before February 20, 2008, the letter will ask for details of your financial account(s) that you have registered against your property from the date of registration until February 20, 2008.

Other Notes:

If your property purchase was registered before February 20, 2008, and you paid down your mortgage before February 20, 2008, there are limitations on how much of your financing you can pay down.

You may still qualify for a partial exemption if you pay down your financing more than the limitation amount before February 20, 2008, or if you move off the property before the end of the first year.

It is your responsibility to make sure the ministry receives all of the necessary information. If the ministry does not receive the information, you will be assessed for the property transfer tax due.

This brochure provides general information on the “First Time Home Buyers’ Program”.  For more details on the program, please see Bulletin PTT 004 available at www.gov.bc.ca/sbr entitled First Time Home Buyers’ Program or contact:

• Telephone: (Victoria) 250 387-0604
• Toll-free in Canada: 1 800 663-7867 (request a transfer to 250 387-0604)
• E-mail: PTTENQ@gov.bc.ca