I wanted to wish you a happy Easter holiday and share information on a couple big changes coming to the real estate market in BC.
Currently, the First Time Home Buyer (FTHB) full exemption applies to properties with a fair market value (FMV) of less than $500,000, with a partial exemption for properties with a FMV of $500,000 to $525,000.
As of April 1st, 2024, the FTHB exemption will apply to properties in a different way, and this is great news for many buyers.
For properties with a FMV of less than $835,000, PTT is not payable on the first $500,000, but payable on the difference between the FMV and $500,000.
For example, if the FMV of the property is $700,000, PTT paid would be 2% of $200,000 ($700,000 less $500,000).
Not paying PTT on the first $500,000 saves buyers a total of $8,000
If the property has a FMV between $835,000 and $860,000, then a partial exemption applies, the details of which are not yet confirmed by the BC government.
If the FMV of the property is over $860,000, then there is no FTHB exemption.
Increased Threshold for Newly Built Home Exemption (Presales)
Effective April 1, 2024, the FMV threshold to claim the Newly Built Home Exemption will be increased from $750,000 to $1,100,000.
For example, a purchase at $1.1M would save $20,000 in PTT!
Just keep in mind that presales are subject to 5% GST and the total purchase price (GST included) is what is considered for the exemption.
A partial exemption is also available for properties with a FMV under $1,150,000. The details of the exemption are also yet to be confirmed by the BC government.
Properties with a FMV of greater than $1,150,000 will not be able to claim the Newly Built Home Exemption.
As usual, please reach out if you have any questions and hope you have a wonderful Easter!
