Bob Sethi, B.Comm | 604.273.2828

Government reduces tax burden on first-time buyers


Government reduces tax burden on first-time buyers


First-time home buyers received some welcome news in today’s provincial budget.


The Liberal Government announced, effective February 19th, 2014, qualifying first-time buyers can buy a home worth up to $475,000 under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program. This is a significant increase where the previous threshold was $425,000.


In addition, homes priced $475,000 to $500,000 qualify for the continuiing partial exemption falling more in-line with B.C.'s housing prices, most notably in Metro Vancouver.


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 buying their home.


These new exemptions are estimated to cost $8 million in lost tax revenue each year.


Together with BC Real Estate Association, the BC Real Estate Board has actively lobbied to make home ownership more affordable for first-time homebuyers. The increased limits in the threshold indicate these lobbying efforts on behalf of the public have paid off. Note that in 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. And, in 2005, the government increased the threshold to $325,000 from $275,000.


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.

Find out how the new exemption limits affect you by contacting me today at


For more on the Budget,


Based on reporting from the real estate board of greater vancouver.

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Bob Sethi, B.Comm
RE/MAX Westcoast
#110-6086 Russ Baker Way
Richmond, BC
V7B 1B4 Canada

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