Tax Savings Will Help People Buy Homes, Boost Construction

New measures soon to be in place to encourage new home and rental construction throughout British Columbia - and to get more first time buyers into their new homes.

“Everyone wants to find a home they can afford and build a good life in the community they love, but high property prices and interest rates have made this harder,” said Katrine Conroy, Minister of Finance.

“We are taking action on the housing crisis at every opportunity. By making it easier for people to purchase their first home and encouraging home and rental building, we’re building on our actions to make housing more affordable and available for families across B.C.”

As part of Budget 2024, the threshold for the first-time homebuyers’ program was increased from $500,000 to $835,000 to help more people buy their first home.

Beginning April 1st,  qualifying individuals buying homes up to $835,000 now receive an exemption on the property transfer tax on the first $500,000 of the home’s value.

The Province says an estimated 14,500 people, twice as many as previously, will be able to own their first home while saving up to $8,000 in property transfer tax.

The threshold for the newly built home exemption increases from $750,000 to $1.1 million.

That is expected to boost construction and help 10,400 individuals and families move up the property ladder every year: 2,400 more than in previous years.

Also, to get more rentals on the market, people who buy new purpose-built rental buildings of four units or more, purchased between Jan. 1, 2025, and Dec. 31, 2030, may qualify for an exemption from the general property tax.

This means that those purchasing a purpose-built rental building valued at $10 million could save $278,000 in general property transfer taxes, provided the buildings are held as rentals for a minimum of 10 years.

For more information, visit Government of British Columbia.