Buying a house for the first time? It's your lucky day!!!
The government of Canada has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.
The partial exemption continues and will apply to homes valued between $475,000 and $500,000.
With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.
If you're in the market for a single family home in Vancouver proper, you might be out of luck due to elevated prices of houses here in Vancouver. There are not too many sub $500,000 currently on the market today.
The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. Check out these numbers.
- In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000.
- In 2005, the government increased the threshold to $325,000 from $275,000.
In case you're wondering... The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.
If you want to know more about the budget: