Wednesday, February 20, 2008 Good News For First Time Homebuyersby Rob Viccars on Wed, Feb, 20, 2008 10:37 PM Home ownership just got a little more affordable for 'property virgins' as the BC government has raised the Fair Market Value theshold for an exemption to Property Puchase tax to $425,000 from $375,000.
In addition, a proportional exemption is available for first time buyers for properties with a fair market value of up to $450,000.
The amount of PPT payable by buyers who do not qualify for an exemption remains unchanged at 1% on the first $200,000 and 2% on the balance.
Before this significant change, the first-time buyer who wanted to purchase a $425,000 home would have needed to come up with another $6500 on closing!
This has been a long time coming,as prices in BC (especially the Lower Mainland) continue to rise and first time buyers struggled to put the cash together to make their first home purchase.
If you are a first-time buyer, you can qualify if;
The purchase price is less than $425,000 (full exemption). There is a sliding scale up to $450,000.
You have never owned a primary residence anywhere in the world.
You must be a Canadian citizen or a permanent resident for the past 12 months before your completion date.
You must live in the the home as your primary residence for a minimum of one year following completion.
For more details contact your realtor or mortgage specialist. |
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