The Newly Built Home Exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home. This exemption can save buyers up to $13,000 in property transfer tax when purchasing a newly constructed or subdivided home worth up to $750,000. It can also be used by first-time home buyers in conjunction with the B.C. Home Owner Mortgage and Equity Partnership to help their dream of homeownership come true.
A newly built home includes:
- A house constructed and affixed on a parcel of vacant land.
- An apartment in a newly built condominium building.
- A manufactured home that is placed and affixed on a parcel of vacant land.
- An already constructed house that is removed from one parcel of land and affixed to another parcel of vacant land, as long as the house has not been occupied since it was placed on the new parcel of vacant land.
- A house resulting from the division of an existing improvement affixed to a parcel of land that was also subdivided, as long as this house has not been occupied since the subdivision of the parcel.
- A house converted from an existing improvement on the land. The previous improvement can not have been used as residential. For example, a warehouse converted into apartments would qualify.
If you qualify for the exemption, you may be eligible for either a full or partial exemption from the tax.
If you paid property transfer tax when you purchased vacant land and you now have a newly built home on the land, you may be eligible for a refund of the property transfer tax you paid.