101 Series: Vancouver Property Transfer Tax Rebate – Consult with a Vancouver Mortgage Broker
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Vancouver Property Transfer Tax Rebate
Did you know that if you are a first time home buyer in B.C. and meet the criteria that you might be able to claim a full or partial exemption from the Property Transfer Tax?
When you buy a home in Vancouver you will have to pay as much as 2% equivalent to the value of the purchase or asking price for a property transfer tax on the home you buy. This is often an unexpected and costly expense that many first time home buyers are not even aware about.
However, the good news is that if that you meet the eligibility requirements you may be able to claim an exemption from the Property Transfer Tax if the market value of the home you are buying is less than the specified “Threshold” amount.
B.C. Property transfer Tax Rebate Threshold Amount
To determine whether you qualify for the full rebate, the property you buy must meet the following conditions:
- The thresholds for any property registration occurring after February 20, 2008 is the fair market value of the property including any improvements which is not valued more than $425,000
- The total area of land is not more than 0.5 hectares or 1.24 acres
- The property that you are purchasing is to be used as your primary residence
You may also be eligible for a partial rebate if your meet the following threshold requirements;
- The property you buy is valued at not more than $25,000 above and beyond the qualifying threshold purchase amount of $450,000
- The land you buy is actually larger than 0.5 hectares (however, you will only be eligible for a total of 0.5 hectares)
- You use a portion of the land for commercial purposes (however, only the primary residence may be allowed)
How do you Apply for the Property Transfer Tax Rebate?
If you feely you qualify for the property tax transfer rebate, you would have to submit a First Time Home Buyer’s Property Transfer Tax Return known as form FIN 269. In most instances the lawyer or the notary public who registers your property will apply for this exemption for you.
If you have to do this yourself, you can obtain the FIN 269 form from the lawyer, the notary public or from a Service BC Centre.
You must apply for this rebate within 18 months from the date that your property is registered with the land title office.
If you are buying an existing home, you must also move into the home within 92 days from the time that you registered the title of property. If the land that you buy is vacant then you must move into your new residence within 1 year from the time that you register the title of property.
You also required to use this residence as your primary residence and reside on the property for the remainder of the first year but may still be eligible for a partial rebate if you leave before the end of the first year.
The only 2 exceptions which preclude these requirements include:
- You are deceased before the conclusion of the first year
- You are required to transfer the property as a consequence of a separation agreement or a court order under the Family Relations Act