Newly Built Homes PTT Exempt (up to $750,000) – Effective February 16, 2016Synergy Mortgage
Chana Charach, MB
The Newly Built Home Exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home with a fair market value of $750,000 or less. (A partial exemption is available up to $800,000)
To qualify, you must be an individual and a Canadian Citizen or permanent resident (you will be asked to provide your Social Insurance Number (SIN) and your birth date). The property must be located in B.C., and used as a principal residence. After you have registered the property, you must meet occupancy requirements during the first year you own the property. To keep the tax exemption you must:
- move into your home within 92 days of the date the property was registered at the land title office, and
- continue to occupy the property as your principal residence for the remainder of the first year.
You will receive a letter at the end of the first year to confirm you meet these requirements. You may keep part of the exemption if you moved out before the end of the first year. If the owner passed away, or the property is transferred because of a separation agreement or a court order under the Family Law Act before the end of the first year, the exemption may still apply.
The exemption doesn’t apply to the ‘additional property transfer tax’ on residential transfers to foreign nationals or foreign corporations. If you don’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the property transfer tax. However, if you’re a foreign national or foreign corporation, you can’t be refunded any additional property transfer tax you may have paid.