REAL ESTATE FORUM
Effective August 2, 2016, Buyers of residential properties has to pay Property Transfer Tax equal to the total of the following:
1) 1% of the Purchase Price on the first $200,000;
2) 2% of the Purchase Price from $200,000 and $2,000,000;
3) 3% of the Purchase that exceeds $2,000,000
4) An additional Property Transfer Tax equal to 15% of the Purchase Price if the Buyer is and will be on the Completion Date, a "Foreign Entity" or a "Taxable Trustee" as defined in the British Columbia Property Transfer Tax Act.
Buyers are advised to seek independent legal consultation in regards to their citizenship or resident status in relation to their liability to pay the required Property Transfer Tax.
Effective November 30, 2016, all Buyers, regardless of the amount of the downpayment, must qualify for a loan at the Bank of Canada's posted five-year fixed mortgage rate, which is usually higher than a bank's mortgage rate.
CAPITAL GAINS TAX
1) Any gain from selling your principal home is tax-free and does not have to be reported as income. As of 2016 tax year, the capital gains tax is still waived, but the sale of the principal home must be reported at tax time to the Canada Revenue Agency.
2) Capital Gains exemptions on principal residences will apply only to residents of Canada.
The above information is deemed correct, but is not guaranteed. 12 2016