top of page

Newly Built Home Exemption 2024

Updated: May 2




A. The newly built home exemption reduces or eliminates the property transfer tax on qualifying purchases of a principal residence.


  • Full exemption: Effective April 1, 2024, the fair market value threshold for a full exemption for newly built homes is increased from $750,000 to $1,100,000.

  • Partial exemption: A partial exemption is also available for properties with fair market values just above the threshold. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying purchasers.


B. Definition of a Newly Built Home

A newly built home includes:

  • A house constructed and affixed on a parcel of vacant land

  • A new 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 could not have been used as residential (e.g. a warehouse converted into apartments)

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.


C. Are You Qualified for Application to the Newly Built Home Exemption - Homeowner & Property Requirements?

  • The property (land and improvement) transfer must be registered at the Land Title Office after February 16, 2016, and

  • This must be the first registration of this property with a completed improvement, and

  • You must be a Canadian citizen or permanent resident (you will be asked to provide your Social Insurance Number (SIN) or proof of permanent residency and your birthdate)


and the PROPERTY QUALIFICATION must:

  • Be located in B.C.

  • Only be used as your principal residence

  • Have a fair market value of $1,100,000 or less ($750,000 if the title is registered before April 1, 2024)

  • Be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption, if the property:

  • Has a fair market value greater than $1,100,000 and less than $1,150,000 (greater than $750,000 and less than $800,000 if title is registered before April 1, 2024)

  • Is larger than 0.5 hectares

  • Has another building on the property other than the principal residence

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 does not qualify because you're not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the property transfer tax.

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


D. If you qualify for the exemption, but did not apply when you registered your home, you may apply for a refund.


E. How does the updated Newly Built Home Exemption impact homeowners who applied to the First Time Home Buyer Program after 2016? BOOK A FREE CONSULTATION BELOW!


This article covers most of the updated Newly Built Home Exemption program details, however, it does not cover ALL of the details related to this program. For complete details, please use the consultation tool to book a consultation with us, so we can address your specific concerns related to this program.

8 views0 comments

Recent Posts

See All

Consumer vs. Client: which one are YOU currently?

What are the differences between a Consumer and a Client in the context of a (potential) real estate transaction? This discussion reflects one of the foundational concepts and principles in the intera

Comments


Commenting has been turned off.
bottom of page