The newly built home exemption reduces or eliminates the property transfer tax on qualifying purchases of a principal residence.
- Full exemption: Effective April 1, 2024, the fair market value threshold for a full exemption for newly built homes is increased from $750,000 to $1,100,000.
- Partial exemption: A partial exemption is also available for properties with fair market values just above the threshold. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying purchasers
- The property must:
- Be located in B.C.
- Only be used as your principal residence
- Be 0.5 hectares (1.24 acres) or smaller
- Have a fair market value of $835,000 or less (effective April 1, 2024)
- Qualifying first-time buyers can benefit when they purchase a home worth up to $835,000, with the first $500,000 completely exempt from the property transfer tax. That could mean as much as $8,000 in savings!