Property Purchase Tax - New Rules

Newly built homes priced up to $750,000.00 will be fully exempt from the property transfer tax when bought by Canadian citizens or permanent residents as a principal residence and lived-in for a full year. The measure aims to assist purchasers and stimulate the construction of moderately priced homes.

The exemption will save a Purchaser up to $13,000.00 and provide an estimated $75 million in property transfer tax relief for new construction in 2016-2017.

Call Carol for more information.

These “up-front” expenses are payable on or before the completion day of your purchase. It is possible that you could be exempt from some fees or some fees may be waived.

Downpayment

The new breakdown is as follows:

• For homes with a purchase price of less than or equal to $500,000 the minimum down payment is 5%.
• For homes with a purchase price greater than $500,000 and less than $1 million, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance.

First Time Buyers

Property Transfer Tax

• 1% of the Purchase Price on the first $200,000

• 2% of the Purchase Price that exceeds $200,000 but does not exceed $2,000,000.00

• 3% of the Purchase Price that exceeds $2,000,000.00

• Since February 21, 2018 an additional 2% on the portion of the fair market value that is greater than $3,000.,000.00 if the Property is Class 1 property as determined by BC Assessment

Lawyer/Notary Fees

Includes your lawyer’s fees & registration of mortgage and Certificate of Title and disbursements.

Appraisal Fee

• Most lenders require an appraiser’s report confirming that the purchase reflects fair market value. Depending on your down payment, some lenders will waive this requirement.

House Inspection Fee

• It is the buyer’s option to have a home inspection to pinpoint defects. This is not a lending institution requirement.

House Insurance

• Required by the Mortgagee as security for the loan. Strata properties are insured for contents and liability only.

Survey or Title Insurance

• A survey accurately depicts the location of the house and outer buildings in relation to the property lines. Title insurance provides for no-fault protection against title risks.

Property Tax Adjustment

• Based on the “adjustment date,” you may have to reimburse the Seller for his/her portion of the prepaid property taxes.

GST/HST – Goods & Services Tax

• Only applicable on new housing.