3% Property Transfer Tax
As part of BC’s recently introduced provincial budget, some tweaks were made to the Property Transfer Tax that will affect home buyers.
A new 3% PTT rate will apply to the portion of all home sales that exceed $2 million. For homes that sell for below $2 million, the Property Transfer Tax will continue to apply at a rate of 1% on the first $200,000 and 2% on the balance.
What does that mean?
For a $3 million home, the Property Transfer Tax will rise by $10,000 to $68,000. In 2015, about 8% of homes sold in Greater Vancouver went for more than $2 million.
A New Housing exemption to the PTT will apply to newly built homes or newly subdivided units priced up to $750,000, saving buyers up to $13,000; and a partial exemption on newly built homes priced $750,000 to $800,000.
About 31% of homes sold in Greater Vancouver in 2015 were below $750,000.
First time home buyers are still exempt from Property Transfer Tax on purchases of used homes valued at $475,000 or less.
What is your home worth in today’s market?
Provide me with some detailed information and I can provide you with a fair market value.
