Buying your first home in BC is exciting, but let’s be real—every dollar counts when you’re making that big of a purchase. One of the hidden costs that often catches buyers off guard is property transfer tax (PTT). Thankfully, the BC First-Time Home Buyers’ Program can help by reducing or even eliminating this tax if you qualify.
Let’s break it down so you know what to expect, how much you can save, and whether you qualify.
What Is the BC First-Time Home Buyers’ Program?
The First-Time Home Buyers’ Program is a provincial tax exemption designed to help first-time buyers by reducing or completely waiving the property transfer tax on their home purchase.
Normally, PTT is charged at:
✅ 1% on the first $200,000 of a home’s price
✅ 2% on the portion between $200,000 and $2 million
That can add up fast! But if you qualify for this program, you could save up to $8,000 in PTT costs.
Who Qualifies?
To be eligible, you must meet ALL of the following:
✔️ Be a Canadian citizen or permanent resident
✔️ Have never owned a home anywhere in the world
✔️ Have lived in BC for at least 12 months OR filed at least two BC tax returns in the last six years
✔️ Move into the home within 92 days of purchase and use it as your principal residence for at least one year
Your home must also meet these criteria:
🏡 Have a fair market value of $835,000 or less (effective April 1, 2024)
🏡 Be 0.5 hectares (1.24 acres) or smaller
🏡 Contain only residential improvements
🏡 Be used only as your principal residence
Note:
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If you bought your home before April 1, 2024, the full exemption only applies if the fair market value was $500,000 or less.
How Much Can You Save?
If your home meets the full exemption criteria, you won’t pay property transfer tax on the first $500,000—saving you up to $8,000.
If your home is priced above $835,000 but below $860,000, you may qualify for a partial exemption.
Do You Qualify for a Partial Exemption?
You may still get a reduced tax rate if your property meets any of these conditions:
✔️ It has a fair market value between $835,000 and $860,000 (effective April 1, 2024)
✔️ It is larger than 0.5 hectares (1.24 acres)
✔️ It has another building on the property besides the principal residence
Note:
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If you bought your home before April 1, 2024, a partial exemption applied if the home’s fair market value was between $500,000 and $525,000.
How Do You Apply?
When your lawyer or notary registers your property at closing, they’ll apply for the exemption on your behalf. Just make sure you meet all the conditions and keep records in case the government requests proof later.
Foreign Buyers & Refunds
Foreign entities and taxable trustees do not qualify for this exemption. However, if you become a Canadian citizen or permanent resident within one year of registering your home, you can apply for a refund of the property transfer tax you paid.
To apply for a refund, call 236-478-1593.
Final Thoughts
This program is one of the best tax breaks available for first-time buyers in BC, especially now that the home price limits have increased. If you’re planning your first home purchase and want to make sure you take advantage of every savings opportunity, let’s chat—I’d love to help you plan strategically!