First Time Home Buyers (FTHB) status should not be confusing, but it is

Posted by on Oct 2, 2017 in Blog | 0 comments

First Time Home Buyers (FTHB) status should not be confusing, but it is

First Time Home Buyers (FTHB) status should not be confusing, but it is.

If you are lucky enough to find the property these days that is under $500,000.00 and you never owned property before that could be considered as your principal residence, you may be qualified to be a First Time Home Buyer.

Please see full info on this government link:

http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/first-time-home-buyers

Q&A on Common Myths and misconceptions regarding FTHB:

  1. I did not own a property for 10 years now, do I get my First time home buyers status back – NO
  2. I was previously on title as 1% owner only, does it mean that I am still a First time Home buyer – No, you no longer qualify.
  3. I owned rental property before, but I never lived in it, am I still a first Time home buyer?- yes, as long as you and property qualifies under the criteria on the link provided above.
  4. I heard that Property Transfer Tax (PTT) exemption is now on the homes up to $750,000.00, is it true?- No, BC Housing is providing second mortgages to the First time Buyers. If the purchase of the property under $750,000.00, First time home buyer may qualify for a second mortgage with no interest for 5 years (https://www.bchousing.org/news?newsId=1479148447000) . This amount is extremely confusing to many buyers, as rule for the purpose of exemption from paying PTT tax is up to $500,000.00 and is prorated to $525,000.00.   So, to summarize, you are FTHB for the purpose of exemption from PTT if property is under $500,000.00. You are FTHB for the purpose of getting second mortgage with BC housing if property is under $750,000.00, but you may be facing paying PTT as a result of higher price.

Please give my office a call if you have any more questions

Sincerely,

Irina Bartnik