First-Time Buyers Tax Break Update

B.C. first-time buyers have finally received an increase in the amounts of property tax exemption limits. Now homes purchased up to $325,000 will be free from property transfer tax if you are a first-time buyer (never owned property anywhere in the world). A proportional tax exemption is available from $325,000 to $350,000.

Maximum mortgage paydown limits in the first year have been increased to $13,000.

Good news on the property tax side too. The basis homeowner grant is now available on homes valued up to $685,000. The grant is phased out by $5 for every $1,000 in value over $685,000. It is completely phased out for homes valued at $779,000 ($834,000 for seniors).

It is great to see that the government is recognizing that limits were not in line with today's market, and have taken the necessary step to help close the gap.