The NDP provincial government has released its new budget. From a housing perspective here are the highlights (or lowlights depending on your perspective).
1. Speculation Tax
This new, annual property tax will apply to foreign and domestic homeowners who do not pay income tax in BC, including those who leave their properties vacant.
The new tax will initially apply to homes in Metro Vancouver, the Fraser Valley and capital regional districts in Victoria and Nanaimo, Kelowna and West Kelowna.
In 2018, the tax rate will be 0.5% of assessed value. In 2019, it will rise to 2.0% of assessed value.
2. Victoria Area Foreign Buyers Tax
Effective Wednesday February 21, 2018, the government will increase the foreign buyers tax from 15% to 20% and extend the tax to the Fraser Valley, the capital regional districts in Victoria and Nanaimo and the Central Okanagan Regional Districts.
What is a foreign buyer? See this link to find out the technicalities:
3. $3 Million+ Property Tax Increases
Property Transfer Tax now increased from 3% to the new rate of 5% for properties purchased for over $3 Million. In addition there will be an increase to the School Taxes to 0.4%.
4. Elimination of the BC Home Partnership Program
BC Home Partnership Loan Program is being eliminated March 31st, 2018. If you intend to use this program please contact me immediately. Details here.
BC Housing and Mortgage Activity During 2016
Canada Mortgage Qualifying Rate Lowered to 5.19%
BC Budget Announcement: First Time Home Buyer Property Transfer Tax Full Exemption Raised to $500,000
Breaking News: BC Mortgage First Time Buyer Down Payment Loan