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Things of Note For the 2016/2017 BC Provincial Budget

  • Effective today (Wednesday), newly-built homes up to $750k will be property transfer tax exempt, but only for Canadian citizens and permanent residents. This exemption will apply to homes that are owner-occupied for at least a year after purchase date (qualifications for this do not include relatives). This is in addition to the existing First Time Home Buyers’ Program for properties up to $475k.
  • Homes over $2 million have an increase in property transfer tax of 1% bringing the total tax to 3%. This tax applies to both new and used homes.
  • Buyers will be required to provide their citizenship information – this will be monitored by the government, which hasn’t been done since 1998.
  • The premium on MSP is going up $3 per adult (new total of $78) and the discount for couples is being eliminated, which will effectively increase a two-adult family by $14. However, children will now be exempt. Changes will begin in January of 2017.
  • The economy is anticipated to grow 2.4% and the budget is expected to have a $264 million surplus. The tax-payer supported debt is expected to increase as well to $43.2 billion, which equates to 3.7 cents per dollar of government revenue.
  • Provincial debt is expected to increase to $67.7 billion.
  • The disability income assistance rate will see a small increase of $77 per month, assuming there is no buss pass or transportation allowance already in place, which will alter the increase for that individual. The welfare rate is unchanged.

Some good news in this for First Time Home Buyers’ and those looking to upgrade to brand-new homes without paying the property transfer tax. Talk to you Dominion Lending Centres Mortgage Professional to discover your mortgage options!