Property Purchase Tax

If you are a first time home buyer purchasing a home under $425,000 and have never owned real estate anywhere in the world, you are exempt from having to pay the Property Transfer Tax. The Property Transfer Tax, also known as the Property Purchase Tax, is a provincial tax charged on real estate at 1% of the first $100,000 of the home value, and 2% of the remaining value. For a $450,000 home purchase, the buyer will pay $7000 in tax. As soon as any person who has owned real estate before appears on the title, this tax is applicable. There are several lobbying parties looking to have the PTT reduced, because when the tax was originally was created in 1987 average home values were under $200,000 in Vancouver. They now average $760,000. Unfortunately, the tax which was meant to affect only 2% of the population now affects 88% of British Columbians, and is a major expense especially for move-up buyers.