First-time buyers of homes under $835,000 can get a BC tax exemption next month
More British Columbians purchasing their first home will be eligible for a tax exemption saving them thousands of dollars starting next month.
First-time home buyers purchasing homes priced up to $835,000 can avoid paying property transfer tax when rule changes kick in on April 1. A partial exemption will be granted to buyers of homes that cost up to $860,000.
Qualifying buyers will be exempt from taxes on the first $500,000 of the purchase price.
“For many, buying a home is the largest purchase they will ever make, and property prices are making it harder. Every little bit helps,” the government said in a news release.
The change is part of a slew of financial updates the province announced last month when releasing the 2024 budget.
The province says the change means twice as many people as before will be eligible for support in buying their first home. They estimate that 14,500 British Columbians will take advantage of the program this year.
Previously, the cutoff to qualify for the first-time home buyers’ program was less than $500,000, with partial exemptions for homes $525,000 or less.
The benchmark price for a condo in Metro Vancouver was nearly $752,000 in January. Not many homes in the Lower Mainland would have qualified for first-time buyer exemptions under the old rules.
The province believes the changes will mainly benefit people buying in urban areas who are under the age of 35.
“The First-Time Homebuyer Program was designed to provide that financial boost. But the program no longer reflects the realities of today’s housing market,” BC Minister of Finance Katrine Conroy said during her February budget speech, explaining the rationale behind the changes.
“Even with a good job and steady savings, it’s tough to put together a down payment these days. As a result, there’s more pressure on the housing market with people renting for longer.”
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