2018 BC BUDGET HOUSING HIGHLIGHTS
- Foreign Buyer's Tax has increased from 15% to 20% and expanded to include the Fraser Valley, Central Okanagan and Nanaimo and Capital Regional Districts. Areas for each region can be found at https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax/bc-areas Note: Contracts written before Feb. 20, 2018 with a closing on or before May, 2018 are exempted, but only for Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan or Nanaimo Regional District. The exemption does not apply in Greater Vancouver.
- Speculation Tax introduced to target foreign and domestic homeowners who do not pay income tax in B.C. and will apply to same areas as foreign buyers tax apart from Okanagan, where it only applies to Kelowna and West Kelowna. Effective in 2018 at $5.00 per $1,000.00 of assessed value, goes up to $20 per $1,000.00 in 2019. Not sure how this will affect vacation homes, nor when the tax is payable.
- Property Transfer Tax Tax increases from 3% to 5% on value of homes over $3,000,000.00. Threshold remains at 1% on first $200,000.00, 2% on amounts between $200,000.00 and $2,000,000; 3% on amounts between $2,000,000.00 and $3,000,000.00 and 5% on amounts over $3,000,000.00.
- Pre-sale condo assignments - developers will be required to collect and report information about pre-sale condo purchases.
BC Home Loan Partnership Program has been terminated. Borrowers have until March 31, 2018 to submit an application. Please note the borrower must be pre-approved and submit a pre-approval document to BC Home Loan prior to March 31, 2018.