How BC’s Budget 2024 Can Help You Save When Buying a Home

Buying a new home comes with many challenges, and can be a daunting endeavour – for new home buyers and seasoned buyers alike. For most people, buying a home is one of the biggest decisions they’ll ever make, and every dollar saved can make a difference. Keep reading to learn more about how B.C.’s new Budget 2024 can help qualifying first time home buyers and those looking to purchase a newly built home save money along the way.

Effective April 1, 2024, first-time home buyers and those looking to purchase a newly built home can benefit from exemptions and reductions on the property transfer tax payable for qualifying purchases of a principal residence.

First Time Home Buyer’s Program

The First Time Home Buyers’ Program provides eligible first-time home buyers with either a full or partial reduction of the amount of property transfer tax payable when you purchase your first home. In order to keep up with today’s market, effective April 1, 2024, British Columbia’s Budget 2024 introduced increases to the threshold for the First Time Home Buyers’ Program.

As of April 1, 2024, qualifying first-time buyers can benefit from property transfer tax savings of up to $8,000 when they purchase a home with a fair market value of up to $860,000 as their principal residence. The savings apply as follows:

• An exemption in the full amount of the property transfer tax payable for a home with a fair market value of up to $500,000;
• An exemption of up to $8,000 of the property transfer tax payable for a home with a fair market value between $500,001 and $850,000; or
• A partial exemption of the property transfer tax payable for a home with a fair market value between $835,001 and $860,000 (more below).

To qualify for the exemption, you must:

• be a Canadian citizen or permanent citizen;
• be a first-time home buyer;
• have lived in B.C. for at least a year immediately before the date the property is registered, or have filed at least 2 income tax returns as a B.C. resident in the last 6 taxation years before the property is registered;
• never have owned interest in a principal residence anywhere in the world; and 
• never have received a first-time home buyer’s exemption or refund.

You may qualify for a partial exemption from the property transfer tax payable on your purchase if the property has a fair market value of more than $835,000 but less than $860,000, is larger than 0.5 hectares, and/or, has another building on the property other than the principal residence.

Newly Built Home Exemption

The Newly Built Home Exemption reduces or eliminates the property transfer tax payable on qualifying newly built home purchases. Effective April 1, 2024, those seeking to purchase a newly built home can benefit from a full exemption of property transfer tax if they are seeking to purchase a newly built home with a fair market value of $1,100,000 or less as a primary residence. 

To qualify for the exemption:

• you must be a Canadian citizen or permanent resident;
• this must be the first registration of this property;
• the property must be located in B.C.;
• the property must only be used as your principal residence; and
• be 0.5 hectares or smaller

A partial exemption may be available for newly built properties with a fair market value just above the threshold, meaning a fair market value greater than $1,100,000 and less than $1,150,000. Properties larger than 0.5 hectares may also benefit from a partial exemption, as may properties with another building on the property other than the principal residence. 

How a legal professional can help

Both programs require that a number of qualifications be met for the exemptions to apply and include a number of additional requirements after the application to keep the exemption or reduction. 

By speaking to a legal professional before you purchase a property, we can help you determine whether any of the above exemptions can be used to reduce or eliminate the amount of property transfer tax you need to pay on your new purchase. We can also advise you on how to proceed if you are eligible for both programs, and if applicable, apply for the exemption or reduction on your behalf during the purchase.

Contact us today to learn more about how we can help you save money along the way on your home purchase.