PTT (or PPT) – a sales tax that is taken by the government of the province of British Columbia, it is levied on all transactions made in the region.
PTT Interest Rates:
- 1 percent for the first 200 thousand dollars
- 2 percent on the balance up to $ 2 million
- 3 percent of the price portion <$ 2 million
PTT calculation is not performed on the GST component where GST is provided.
Who is freed from PTT
Those who buy residential property for the first time do not pay PPT. This applies to homes whose price is 500 thousand dollars or less. If you plan to buy a house for more than 525 thousand dollars, you will have to pay tax.
When buying residential property by two people, one of whom does it for the first time, and the other does not have such an exemption, the tax is paid in equal shares – in proportion to their parts in owning the house.
To take advantage of the privilege of buying the first home in your life, you need to know that after the purchase you will have to live in this house for at least a year.
Newly built house
If the construction of the house was completed recently, then the amount of tax may be reduced or not at all. Anyone who bought such a property and its value was 750 thousand dollars or less does not pay tax. If the cost of the house exceeds 800 thousand dollars, then the tax will have to be paid. The condition for receiving benefits is accommodation in the purchased house for at least a year after purchase.
– Costs of a notary / lawyer
The cost of notary / lawyer services will range from 1,000 to 1,250 dollars. This point is important to consider when buying / selling a home.
– Property tax
Arrangements between the seller and the buyer of real estate may imply that the buyer will have to pay all taxes that the seller has already paid for the future. If the house is purchased on a mortgage, that lender may establish a requirement that property tax be classified as payments made each month. Who can help calculate the tax levied on property? Notary / lawyer.
– Inspection of the house
You will have to pay for the inspection of the house. The amount will be in the range of 500-900 dollars. The specific amount depends on the characteristics of the property: its size, features, difficulties during the inspection.
– Insurance
When buying a home in a mortgage, property insurance is often required. Many lenders require compulsory insurance in case of fire. Other insured events may be included.
– GST
GST, if a new home is being sold / bought, equals 5% of its value.
– Costs of relocation
Have to pay for the move. The amount of expenses in this case depends on many factors, in particular, on the distance when moving, as well as who will help in this process. There will be more costs if hired movers begin to help, as well as if things have to be packed.
– Strata maintenance fees
Typically paid on the first day of each month (for strata units only)
– Move-in fee
(for strata units only)