Included in yesterday’s 2016 provincial budget, newly built homes priced up to $750,000 will be FULLY EXEMPT from the property transfer tax when bought by Canadian citizens or permanent residents as a principal residence and lived-in for a full year. This exemption will apply to newly constructed housing, including detached homes, townhomes, condos, and existing homes that have been newly subdivided into a strata, and is available to both first time home buyers and… previous property owners.
So what does this mean for you: If you buy a newly built house worth $750,000, you will save $13,000. What is important to remember here is that this is cash that would have been required to close up front, as your property transfer tax won’t be included in your mortgage. With the new down payment regulations, prior to the announcement your minimum cash requirements for a purchase of $750,000 would have been $50,000 down payment + $1,000 legal + $500 inspection + $13,000 property transfer tax = $64,500. This number has now ben reduced to $51,500, a decrease of more than 20%, which is substantial.
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