Land transfer taxes can vary depending on the province or territory you're in. In Canada, the land transfer tax is typically calculated as a percentage of the purchase price of the property. The rates can range from 0.5% to 2.5%. It's important to research the specific rates for your province or territory before making a purchase. You can also check with your lawyer, real estate agent, or me, your mortgage agent.

In BC, the general property transfer tax rate is:

• 1% of the fair market value up to and including $200,000
• 2% of the fair market value greater than $200,000 and up to and including $2,000,000
• 3% of the fair market value greater than $2,000,000

A qualifying First Time Home Buyer (FTHB) may be fully exempt up to $500,000 and may receive a partial exemption up to $525,000.

The definition of being a FTHB varies with each incentive. In this particular case, being a FTHB means you have never owned a home that was your principal residence before. This includes homes outside of Canada. If you are not sure if you are truly a FTHB it is smart to give your lawyer a call. If you do not know a great lawyer, we would be happy to introduce you to one.

Have questions? Reach out.