BC Property Transfer Tax

New property transfer tax changes affect BC home buyers

The latest BC government budget announced changes in how the property transfer tax is charged.  Here is a summary of the changes:

• -The property transfer tax will remain the same until the purchase price exceeds $2 million.  Currently, the tax rates are 1% of the first $200,000 and 2% of every dollar above $200,000.  Now, at the $2 million threshold, the rate will be 3% of every dollar over $2 million.
• -There is a new program for Canadian citizens and permanent residents purchasing a new home with a value of less than $750,000.
• -The first-time homebuyers program remains unchanged with a full exemption up to $475,000 and a partial exemption up to $500,000.

What impact will this have on the real estate market?

Virtually none.  Those buying new homes will save some money.  Those buying homes for more than $2 million will have to pay slightly more, but it will surely not affect their ability to buy the home that they want.