There are two basic Property Transfer Tax exemptions that you may be eligible for, and knowing what the price ceilings are may help you decide between house A and house B.


The First Time Home Buyer’s Program was created to help first time home buyers get in to a home. The BC Government realizes the cost of getting into a home is substantial.


To qualify you 

  • must be a Canadian citizen or permanent resident
  • never have owned a home ANYWHERE in the world
  • have lived in BC for 12 consecutive months before buying the property OR filed at least 2 income tax returns in the past 6 years as a BC Resident
  • have never receive the First Time Home Buyers’ grant before
  • must be buying the residence to live in (principal residence)
  • must be under 1.24 acres in size
  • Under $500,000 (there is a partial exemption up to $525,000)


If one person has owned a home before, and the other buyer has not, you should talk to your mortgage broker as you may be able to go 50/50 on title or even 99/1 on title and save a significant amount of money.


Newly Built Home Exemption


A home is considered newly built if

  • constructed on a vacant parcel of land
  • apartment is in a newly built condominium building
  • manufactured home placed on a vacant parcel of land
  • house moved from one parcel of land to another and hasn't been occupied


If you paid PPT on a piece of bare land and have now built a house on the land you may be eligible for a PPT refund.


To qualify you must be

  • an individual (not a corporation)
  • Canadian citizen or permanent resident
  • the property must be in BC
  • the property must be used as your principal residence (not a rental property or second home)
  • have a value of $750,000.00 or less
  • be 1.24 acres or smaller


This can be a tricky exemption. Even my lawyer got it wrong the first time and second time. Luckily I knew exactly what my costs should be and was able to show the lawyer where to find the information.


The nice thing about the GST on a New Home is that it is ADDED to the purchase price so you do not need to come up with the cash. Add this fact and the property tax exemption, buying a 'Newly Built Home' can save you from spending a lot of upfront cash at closing.


If you have any further questions, do not hesitate to reach out to me at 250-937-9856. It’s complicated. I have spent 16 years working in mortgage finance and real estate transactions. I can help you.