BC First Time Home Buyer Incentive
The BC First Time Homebuyer Incentive reduces or eliminates the property transfer tax that you would otherwise have to pay when you acquire your first home. If you qualify for the program, you may be entitled to either a complete or partial exemption from the tax.
If one or more of the buyers does not qualify, only the portion of the interest that the BC First Time Home Buyer Incentive take in the property is eligible.
The BC Government rules on these are complicated, but essentially, if you own 60% of a home and another person owns 40% but only you fulfill the criteria, your 60% will receive the exemption.
Do I qualify for bc first time home buyer incentive?
To qualify for a total BC First Time Home Buyer Incentive, you must meet the following requirements at the time the property is registered:
- You have to be a Canadian citizen or permanent resident
- You must have been a resident of British Columbia for at least a year before the property’s registration date, or you must have filed at least two income tax returns as a resident of British Columbia in the previous six years.
- Never had a legal or equitable ownership interest in a property that was your primary residence anywhere on the planet at any one time
- Have never received a BC first time home buyer incentive or refund
The Property Itself needs to:
- Only be used as a primary home, not for commercial purposes or secondary residence.
- Be a house with a fair market value of $500,000 or less
- Be smaller than 0.5 hectares (1.24 acres)
Partial exemptions from the property tax are available to homeowners who meet certain requirements. You may be eligible if your home:
- Has house with a fair market value of $525,000 or less
- Is larger than 0.5 hectares
- Other than the primary residence, there is another structure on the property.
Find out the amount of BC First Time Home Buyer Incentive exemption on WeFin if you qualify.
Exemptions do not apply to foreign entities or taxable trustees. If you’re an individual who does not qualify because you are not a Canadian citizen or permanent resident but become one on or before the first anniversary of the registration date, you may be eligible for a refund of property transfer tax. In this case, call 236-478-1593 to apply for a property transfer tax refund.
Apply
Your legal professional will include the exemption in your property transfer tax return. You must fulfill additional criteria during the first year you own the property to maintain the tax break.
Contact us if you apply but do not move into the property within the allowed time, or if you vacate before then.
Penalty for false declaration
Every application is assessed. You will be fined twice the amount of tax if you report that you have:
- Never owned a home in another country or at any other period of my life.
- Have never received a BC First-Time Homebuyer Incentive exemption or refund
Let Us Help With Your BC First Time Homebuyer Incentive
If you have any questions concerning the BC First Time Homebuyer Incentive or if you want to learn more, please feel free to contact us. We are always here to help you and to provide financial information.
