In case you were not aware our provincial government collects a tax on all real property purchases. The current rate is 1% on the first $200,000 and 2% on the remaining balance. There are few exceptions, and even then the rules can be unreasonable. Nothing is ever straightforward. Two classes that are exempt are mobiles on rented land and first time purchasers….BUT…as a first time purchaser you must fit the criteria:

1. you must never have owned property anywhere in the world.

2. it must be your principal residence

3. you must finance 70% or more

4. the mortgage must be through a bank or trust company and have a term of at least one year

5. you must have been a resident of BC for at least one year

6. the purchase price for our area cannot exceed $225,000

7. the amount of land involved cannot exceed 1.24 acres

8. if your co-purchaser has owned before you may still be entitled to a 50% exemption

dated- Sept 99