First-time buyer in BC? Stack the transfer tax exemption with cash back
First-time buyers in BC have two separate ways to save on a purchase. They have nothing to do with each other, so you can use both.
The property transfer tax exemption
BC charges property transfer tax on every purchase: 1% on the first $200,000 and 2% on the portion up to $2,000,000. Qualifying first-time buyers are exempt on the first $500,000 of homes priced up to $835,000, which saves up to $8,000. The exemption phases out between $835,000 and $860,000.
The rebate
Separately, our Lower Mainland partner agents return half of their buyer-side commission. On a $650,000 condo that is about $4,773.
Together
On that $650,000 condo, transfer tax would normally be $11,000. The exemption cuts $8,000 of it, and the rebate adds $4,773 back. Your net saving is about $12,773 compared with a buyer using neither.
Watch the cap
At $835,000 the exemption is full; at $860,000 it is gone. If you are near that line, your agent should show you both numbers before you write an offer.
Cities where first-time buyers do well: New Westminster, Surrey, Abbotsford.