First time home buyers get an exemption from paying the property transfer tax and this "tax break" can save first time home buyers thousands of dollars. However, first time home buyers need to carefully ensure that they qualify for this tax savings. Persons claiming a FTHB credit are regularly audited by the (PTT) property transfer tax office. The Criteria to Qualify are as follows. Purchaser must be a Canadian Citizen, or a permanent resident as determined by Immigration Canada. Must have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property. Must never have owned an interest in land anywhere in the world at anytime, and have never received a first time home buyers’ exemption or refund. The Property you purchase must also qualify as follows. The price must be less than $425,000. The land must be less than 0.5 hectares (1.24 acres), and the property will only be used as your principal residence. Importantly, if you sell the property or acquire a new principal residence within 12 months of purchase, you will lose the exemption and the Province will demand for the tax to be paid.
More information here:
http://www.sbr.gov.bc.ca/documents_library/brochures/firsttimehomebuyer.pdf
Article by Peter D. Borszcz of Pihl Law Corporation
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