Over the last while, one of the discounts given to First Time Home Buyers in BC is an exemption to Property Transfer Tax (PTT) when purchasing their first property, if it’s under $425,000. As of today, this threshold goes up to $475,000.
PTT is charged on every purchase after you’ve been on title of your FIRST home. The tax is calculated as 1% of the first $200,000, and 2% of everything above that. So on a $300,000 home, the PTT would be $4,000, payable at the lawyer when completing the purchase. Obviously this hurts more and more as the purchase price increases; we may not love that tax here in Nanaimo, but it could be down-right debilitating in Vancouver’s or Victoria’s housing market!
Check out the mention in the article from the Globe & Mail HERE.