Newly Built Home Exemption - April 01, 2024 Changes

Dated: March 14 2024

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We are thrilled to see that the BC government has finally increased the maximum purchase price that qualifies for the Newly Built Home Exemption. The limit was put in place to exclude luxury properties but through inflation, the current cap of $750,000 just didn't make sense anymore. In fact, it ruled out all new construction single family homes in the Comox Valley area and most of Vancouver Island.

Starting April 1, 2024, the BC government has raised the Property Transfer Tax Exemption threshold to $1,100,000. Previously, it only applied to properties under $750,000. Properties priced between $1,100,000-$1,150,000 will see a partial exemption while properties over $1,150,000 will have no rebate. 

Below are some of the rules and quakification guidelines found on the provincual government site.

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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).

To qualify:

-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 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.

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Corey Zaal

Corey Zaal's real estate journey has been defined by a deep commitment to his clients, a passion for excellence, and a relentless drive to deliver outstanding customer service. With an unwavering focu....

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