The first-time home buyers’ program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
If one or more of the purchasers do not qualify, only the percentage of interest that the first-time home buyer(s) have in the property is eligible.
For example, if you acquired 60% interest in the property and another person acquired 40% interest but only you meet the qualifications, only your 60% would receive the exemption.
Do I qualify for an exemption?
To qualify for an exemption, at the time the property is registered you must:
- Be a Canadian citizen or permanent resident
- Have either:
- Lived in B.C. for at least a year immediately before the date you registered the property
- Filed at least 2 income tax returns as a B.C. resident in the last 6 taxation years immediately before the registration date
- Have never owned a registered interest in a property that was your principal residence anywhere in the world at any time
- Have never received a first-time home buyers’ exemption or refund
And the property must:
- Only be used as your principal residence
- Have a fair market value of $835,000 or less (effective April 1, 2024)
- Be 0.5 hectares (1.24 acres) or smaller, and
- Contain only residential improvements
If all of the above requirements are met, then the purchaser will be exempt from property transfer tax on the first $500,000 of the purchase price of the property.
Note: If you purchase the home before April 1, 2024, to receive the full exemption, the fair market value must be $500,000 or less.
Do I qualify for a partial exemption?
You may qualify for a partial exemption from the tax if the property:
- Has a fair market value of more than $835,000 but less than $860,000 (effective April 1, 2024)
- Is larger than 0.5 hectares, and/or
- Has another building on the property other than the principal residence
Note: If you purchase the home before April 1, 2024, to receive a partial exemption, the fair market value must be more than $500,000 and less than $525,000.
Additional requirements after you apply
Built new home
If you registered a vacant lot and built your own home that’s affixed to the property, to keep the tax exemption:
- If the property was registered before April 1, 2024, the fair market value of the property at registration plus the cost to build your home must be less than $500,000 (or $525,000 for a partial exemption)
- If the property was registered on or after April 1, 2024, the fair market value of the property at registration plus the cost to build your home must be less than $835,000 (or $860,000 for a partial exemption)
- You must have built and moved into your home within the first anniversary from the registration date
- You must have continued to occupy the property as your principal residence to a date no earlier than the first anniversary of the registration date
You may keep part of the exemption if you moved out before the end of the first year.
Newly built home exemption
If your first home is considered a newly built home, you may qualify for the Newly Built Home Exemption.
