Newly Built Home Exemption
The Newly Built Home Exemption reduces or eliminates the amount of property transfer tax you pay when you purchase 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 hasn’t 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 hasn’t been occupied since the subdivision of the parcel
- a house converted from an existing improvement on the land. The previous improvement couldn’t 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.
For more information about the Newly Built Home Exemption, visit www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/exemptions/newly-built-home-exemption.
Newly Built Home Exemption FAQs
1. How does this make housing affordable for families?
B.C. is acting to help the market respond to increasing demand for homes. The exemption is intended to stimulate new supply in the housing market – the key to improving housing affordability over the long term.
The Newly Built Home Exemption is available to buyers of attached housing such as condos, townhouses and duplexes too (not just detached houses).
We have a number of programs in place to alleviate some of the financial pressures of home ownership in B.C.: Visit Housing Action: Housing Programs & Services.
2. Given the price of housing today, why is this program only available on houses up to $750,000?
The Newly Built Home Exemption is available to qualifying buyers of attached housing such as condos, townhouses and duplexes (not just detached homes). The limit on home value ($750,000) ensures that those most in need are helped, while creating new housing supply. For details about the program visit Newly Built Home Exemptions.3. Is this a tax break for foreigners?
No. Applicants must be Canadian Citizens or permanent residents of Canada, and the property must be used as the applicant’s principal residence. You can view the eligibility criteria visit Newly Built Home Exemptions - Do I qualify?
4. What are you doing about the issue of foreign home ownership in B.C.?
B.C. recently announced new data collection measures that will contribute to greater understanding of what drives growth in B.C.’s real estate market. Among other types of information, we will be collecting citizenship information from buyers when they register properties at the Land Title Office.
5. Why don’t you abolish the Property Transfer Tax altogether?
The Property Transfer Tax represents a significant source of revenue for B.C. In 2015-16, the tax is estimated to bring in almost $1.5 billion in revenue – money that funds important programs and services like education and health care.
In preparation for each year’s provincial budget, the Minister of Finance reviews all taxes and considers whether changes are appropriate within the context of a balanced budget and other spending priorities.
6. What about tax breaks for existing and older homes?
Buyers and existing owners of older homes may benefit from other programs that are already in place. In particular, the First Time Home Buyers' Program is still in place for first-time purchasers of newly built or already existing homes. Find out about the First Time Home Buyers' Program.
7. What happened to the First Time Home Buyers' Program?
The First Time Home Buyers' Program is still in place, for Canadian citizens and permanent residents of Canada who have lived in British Columbia for at least one year and who make their first purchase of new or existing housing for use as their principal residence. Find out about the First Time Home Buyers' Program.