Understanding Property Transfer Tax in BC
The Property Transfer Tax (PTT) is one of the largest closing costs when buying a home in British Columbia. On a $800,000 home, the PTT alone is $14,000. Understanding available exemptions can save you thousands. As real estate lawyers in Surrey, we ensure our clients never overpay.
How PTT Is Calculated
- 1% on the first $200,000 of fair market value
- 2% on the portion from $200,001 to $2,000,000
- 3% on the portion from $2,000,001 to $3,000,000
- 5% on the portion over $3,000,000
First Time Home Buyers' Exemption
If you've never owned property anywhere in the world, you may qualify for a full PTT exemption on properties up to $500,000, or a partial exemption on properties up to $835,000. You must be a Canadian citizen or permanent resident and have lived in BC for at least one year.
Newly Built Home Exemption
Purchasing a new home (never previously occupied) may qualify for an additional exemption on properties valued up to $1,100,000. This can be combined with the first-time buyer exemption for maximum savings.
How Your Lawyer Helps
Your Surrey real estate lawyer will determine which exemptions apply, prepare the PTT return, and ensure all documentation is filed correctly to avoid delays or rejected claims. We've saved our clients hundreds of thousands of dollars in PTT over the years.