BC Property Transfer Tax (PTT)
British Columbia charges a Property Transfer Tax (PTT) on the fair market value of every property transfer. The rate structure has multiple tiers, with a steep surcharge for luxury properties.
On a typical $900,000 Vancouver-area home: 1% × $200,000 = $2,000 + 2% × $700,000 = $14,000 = $16,000 PTT. BC does not charge PST on CMHC insurance premiums — a meaningful saving compared to Ontario and Quebec.
First-Time Buyer PTT Exemptions
BC offers two powerful PTT exemptions specifically for first-time buyers and newly built homes:
First-Time Home Buyer Exemption (Resale)
Full PTT exemption on homes priced up to $835,000. A partial exemption applies on homes between $835,001 and $860,000 — the exemption phases out proportionally over this range. Above $860,000, standard PTT rates apply. You must be a Canadian citizen or PR, have never owned a principal residence anywhere in the world, and must occupy the home as your principal residence within 92 days of registration.
Newly Built Home Exemption
Full PTT exemption on newly built homes (including condos, townhouses, and modular homes) priced up to $1,000,000. A partial exemption applies between $1,000,001 and $1,025,000. This exemption is available to all buyers — not just first-time buyers — but you must occupy the home as your principal residence.
Foreign Buyer Ban & Speculation Tax
Canada's federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (extended indefinitely) bans most non-Canadian individuals and foreign corporations from purchasing residential property in BC's major urban areas. This applies to Vancouver, the Fraser Valley, Victoria, Kelowna, and other Census Metropolitan Areas. See how the foreign buyer ban affects non-resident mortgage applicants →
BC also levies a Speculation and Vacancy Tax on properties left vacant in designated areas, ranging from 0.5% to 2% of assessed value annually depending on ownership type. If you plan to purchase as an investment property, factor this into your carrying costs. Owner-occupied principal residences are exempt.
BC Closing Costs Breakdown
BC buyers should budget 1–3% of the purchase price in closing costs. Key items include:
- Property Transfer Tax — largest item; typically 2% on most of the purchase price
- Legal / Notary Fees — $1,200–$2,500 for a standard purchase in BC
- Title Insurance — $200–$400; recommended but not universally required
- Home Inspection — $400–$700 in Metro Vancouver
- Property Tax Adjustment — prorated at closing if seller has prepaid
- No PST on CMHC Premiums — unlike Ontario and Quebec, BC does not charge PST on CMHC insurance
- GST on New Construction — 5% federal GST applies to newly built homes; partial rebates available
BC Mortgage Tips
The $835K Cliff on PTT Exemptions
For first-time buyers, a qualifying resale home priced up to $835,000 is fully PTT-exempt, saving up to $14,700 in tax. Between $835,000 and $860,000, the exemption phases out. Above $860,000, the exemption disappears entirely. When negotiating offers in the $835K–$860K range, the PTT threshold is a critical financial factor to discuss with your broker.
Subject-to-Financing Offers
Metro Vancouver's competitive market often pressures buyers to waive financing conditions. This is extremely risky — always secure a pre-approval letter and rate hold from your lender before making an unconditional offer. Speak with your broker about bridge financing options if timing between properties is a concern.
BC Home Owner Grant (Annual Property Tax Reduction)
Once you own your home in BC, you can apply for the BC Home Owner Grant to reduce your annual property taxes. The basic grant is $570; seniors, veterans, and people with disabilities qualify for up to $845. The grant phases out on higher-assessed properties — check the current threshold on the BC government website each year.
Strata Properties and Mortgage Approval
Condos and townhouses in BC are typically strata properties. Lenders will review strata meeting minutes and the depreciation report as part of their due diligence. A strata with a low contingency reserve fund, deferred maintenance, or ongoing special levies can affect mortgage approval or require a larger down payment. Learn how lenders assess strata properties →
Key Programs for BC Buyers
First Home Savings Account (FHSA)
Federal program available to all BC buyers. Contribute up to $8,000/year (max $40,000 lifetime). Contributions are tax-deductible; qualifying withdrawals are tax-free. Ideal for saving towards BC's high purchase prices over multiple years. Full FHSA guide →
RRSP Home Buyers' Plan (HBP)
Withdraw up to $35,000 per person from your RRSP tax-free for a qualifying first home purchase. Repay over 15 years. Combined with FHSA, a couple can access up to $150,000 in registered savings for a down payment in BC's expensive market. How the HBP works in 2026 →
BC Home Owner Grant
Applied annually to your property tax bill — not a one-time purchase incentive. Must apply each year by a specified deadline to receive the reduction. Available to principal residence owners meeting residency requirements.
Frequently Asked Questions — British Columbia
How much is PTT on a $1,200,000 home in BC? +
1% × $200,000 = $2,000 + 2% × $1,800,000 = $36,000. Total PTT = $38,000. If the home were newly built and priced under $1,000,000, the PTT exemption would eliminate this cost entirely.
Does BC charge PST on CMHC mortgage insurance? +
No. BC is one of the provinces that does not charge provincial sales tax on CMHC default insurance premiums. This means BC buyers only pay the federal CMHC premium itself, which can be added to the mortgage balance — there is no surprise cash cost at closing for this item.
I'm a permanent resident — does the Foreign Buyer Ban apply to me? +
No. The federal ban applies to non-Canadian individuals and foreign corporations. Canadian citizens and permanent residents are fully exempt. If you have PR status, you may purchase residential property in BC without restriction under the foreign buyer ban. Some additional BC-specific Speculation Tax exemptions also apply to PRs who are BC residents.
What is the BC Speculation and Vacancy Tax? +
It's an annual tax levied in designated BC regions (Metro Vancouver, Fraser Valley, Capital Regional District, and others) on properties that are not someone's principal residence. The rate is 0.5% for Canadian citizens/PRs who are BC residents, 1% for other Canadian citizens/PRs, and 2% for foreign owners and satellite families. Most owner-occupants receive an automatic exemption.
Can I use both the Newly Built Home Exemption and the FHSA? +
Yes. These are separate programs at different levels of government. The BC Newly Built Home Exemption eliminates your PTT at the provincial level. The federal FHSA allows you to use tax-sheltered savings for the down payment. There is no conflict — a first-time buyer purchasing a new condo under $1M can benefit from both simultaneously.
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