March 2024

There have been some recent changes to the first time home buyer’s program for property transfer tax exemption or reduction.

The first time home buyers’ program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.

If one or more of the purchasers do not qualify, only the percentage of interest that the first time home buyers have in the property is eligible.

For example, if you acquired 60% interest in the property and another person acquired 40% interest but only you meet the qualifications, only your 60% would receive the exemption.

First time home buyers’ program

Last updated on February 26, 2024

The first time home buyers’ program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.

If one or more of the purchasers do not qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.

For example, if you acquired 60% interest in the property and another person acquired 40% interest but only you meet the qualifications, only your 60% would receive the exemption.

On this page

• Do I qualify for an exemption?
• Do I qualify for a partial exemption?
• Apply
• Additional requirements after you apply
• Refunds

Do I qualify for an exemption?

To qualify for an exemption, at the time the property is registered you must:

• Be a Canadian citizen or permanent resident
• Have either:
  • Lived in B.C. for at least a year immediately before the date you register the property
  • Filed at least 2 income tax returns as a B.C. resident in the last 6 taxation years immediately before the registration date
• Have never owned a registered interest in a property that was your principal residence anywhere in the world at any time
• Have never received a first time home buyers’ exemption or refund

And the property must:

• Only be used as your principal residence
• Have a fair market value of $835,000 or less (effective April 1, 2024)
• Be 0.5 hectares (1.24 acres) or smaller, and
• Contain only residential improvements

If all of the above requirements are met, then the purchaser will be exempt from property transfer tax on the first $500,000 of the purchase price of the property.

Note: If you purchase the home before April 1, 2024, to receive the full exemption, the fair market value must be $500,000 or less. 

Do I qualify for a partial exemption?

You may qualify for a partial exemption from the tax if the property:

• Has a fair market value more than $835,000 but less than $860,000 (effective April 1, 2024)
• Is larger than 0.5 hectares, and/or
• Has another building on the property other than the principal residence

Note: If you purchase the home before April 1, 2024, to receive a partial exemption, the fair market value must be more than $500,000 and less than $525,000. 

Find out the amount of your exemption if you qualify.

Foreign entities and taxable trustees are not eligible for the exemption. If you’re an individual who doesn’t qualify because you’re not a Canadian citizen or permanent resident, but you become one on or before the first anniversary of the registration date, you may apply for a refund of the property transfer tax. To apply for a property transfer tax refund in this case, call 236-478-1593.

Find out if you’re eligible to claim a refund of any additional property transfer tax you may have paid.

For More Details on the property transfer tax exemption:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers

Looking for a home in the South Okanagan? Please don’t hesitate to reach out.

Jeffrey Sefton
South Okanagan Home Team
Real Broker, BC
250-244-1762