First Time Home Buyer's Program Below is a summary of the First Time Home Buyer's Program (FTHB) For complete details click here
You may be exempt (partly or fully) from the Property Transfer Tax if certain requirements are met:	Property Transfer Tax is calculated as follows: 1% on first $200,000 and 2% on the balance of the Fair Market Value (FMV) of the home FMV $ PT Tax $ 150,000 1,500 200,000 2,000 250,000 3,000 350,000 5,000 450,000 7,000 550,000 9,000 650,000 11,000 . If there are two or more buyers and only one qualifies as a first-time buyer, then only his/hers portion is tax exempt. REMEMBER: You are a first-time buyer if you've never owned a principal residence anywhere on planet earth. If you qualify as a First Time Buyer then the above table is modified as follows: FMV $ PT Tax $ 150,000 0 200,000 0 250,000 0 350,000 0 425,000 0 430,000 1,320 435,000 2,680 440,000 4,080 445,000 5,520 450,000 7,000 550,000 9,000 650,000 11,000 .
Purchaser
You qualify for the exemption if you are:
A Canadian citizen or permanent resident
A person who has resided in BC for 12 consecutive months immediately prior to the date of registration
A person who has never, at any time, held a registered interest in a principal residence anywhere in the world
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Property
The property must meet the following requirements:
The fair market value (FMV), not necessarily the purchase price, is not more than the current theshold of $425,000. This threshold amount applies to purchases registerd on, or after, February 20, 2008.
The land is 0.5 hectares (1.24 acres) or smaller
The property will only be used as a principal residence
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Financing
Finacing must be as follows:
It is at least 70% of the fair market value of the property
It has a term of at least 1 year
It is registered within 7 days of the date you register the property
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PARTIAL EXEMPTION
When a property has a FMV of up to $25,000 more than the threshold amount, the property is eligible for a partial exemption
The property transfer tax (PTT) payable is reduced by a factor of: (450,000 - FMV)/25,000
For example, for a property with a FMV of $445,000 the partial exemption is calculated as follows:
Partial exemption factor:
(450,000 - 445,000) / 25,000 = 0.2
Full PTT at 1% on the first $200,000 and 2% on remainder = $6,900
0.2 x $6,900 = $1,380
Tax payable is $6,900 - $1,380 = $5,520