The First Time Home Buyers Program by the government of British Columbia provides Property Transfer Tax exemptions for qualified individuals.

For the First Time Home Buyers Program registration on, or after February 20, 2008, the fair market value threshold, for eligible properties, is less than $425,000, with a proportional exemption of up to $25,000 above the threshold. You qualify for this exemption if:

• you are a Canadian citizen, or equivalent;
• have lived in British Columbia, for twelve consecutive months immediately before property registration date, or you have filed two income tax returns as a British Columbia resident during the six years before the registration date;
• you have never owned an interest in a principle residence anywhere in the world;
• you have never received a first time buyers’ exemption or refund.

Under the First Time Home Buyers Program, your property qualifies for this exemption if it is used only as your principle residence, is 1.24 acres or less, and the fair market value is less than $425,000. Partial exemptions may apply if:

• you occupy the property, as your principle residence, within 92 days of the registration date, and remain there for at least one year;
• the purchased land is vacant, your principal residence is built on the land, and occupied by you, within one year of the registration date. The total cost of the land, and any building improvements to the land, cannot exceed the current threshold of $425,000.

Under the First Time Home Buyers Program, one year after you register your property, you will need to confirmation that you have met all of the above government requirements. A letter will be sent to you and it will be your responsibility to respond, by the date requested, to ensure that you are not assessed for the property transfer tax due.

For more information on the First Time Home Buyers Program, call Chris Tioseco at 604.618.6314 or email chris.tioseco@shaw.ca today.