<<< back to article list

Government reduces tax burden on first-time buyers


Blog by Claire LeLacheur | February 19th, 2014


First-time home buyers received welcome news in today’s provincial budget. The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000. The partial exemption continues and will apply to homes valued between $475,000 and $500,000. With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home. The government estimates this measure will cost $8 million in lost tax revenue each year. The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years. In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. In 2005, the government increased the threshold to $325,000 from $275,000. The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price. Here is a link to the Budget.: http://www.bcbudget.gov.bc.ca/2014/default.htm