Buyer's Guide » Don't forget About the Property Transfer Tax
Just as you're getting swept up in the fun and excitement of buying a home, your REALTOR® will sit you down for a frank talk about "closing costs," the extra charges and taxes you'll have to pay on top of the purchase price of your home. The heftiest of these is usually the Property Transfer Tax, or PTT, but the good news is that most first-time buyers are exempt from the tax.
The Property Transfer Tax is a tax paid to the British Columbia government by the purchaser of any piece of real estate in the province. It's calculated at 1% of the first $200,000 of the purchase price, plus 2% of any remainder. For example, on a $275,000 house, the PTT totals $3,500.
You will need to complete a Property Transfer Tax Return, which your lawyer or notary public can assist you with. The tax is payable on the date the purchase is completed at the Land Title Office.
First Time Home Buyer's Exemption
There are a few other complex conditions governing PTT exemptions, but they don't affect most home buyers. Your REALTOR® can supply you with complete details.