First-time home buyers received welcome news in yesterday's provincial budget. The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers' Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.
A partial exemption continues and will apply to homes valued between $475,000 and $500,000.
With the change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their first home.
In 2008, the government increased the threshold to $425,000 from $375,000 and previously in 2005, the threshold was increased to $325,000 from $275,000. The PTT is calculated at a rate of one per cent on the first $200,000 of the purchase price and two per cent on the balance.