Mortgage Guide
How BC's newly built home exemption from property transfer tax works in 2026: who qualifies, what counts as new, how the partial exemption is calculated, and the occupancy rules that can claw it back.
If you are buying a presale condo, a new townhouse or a house a builder just finished, the newly built home exemption BC offers can wipe out the property transfer tax on the purchase. On a home near the top of the range, that is about $20,000 of cash you don't need on completion day. It also has rules that catch people: the home has to be genuinely new, you have to move in fast, and you have to stay a full year.
Everything below comes from the Province of British Columbia's property transfer tax pages, checked in October 2026. The worked numbers are our own arithmetic using the Province's published formulas.
Property transfer tax (PTT) is charged when a transfer is registered at the Land Title Office. The general rate is 1% on the first $200,000 of fair market value, 2% on the portion up to $2,000,000 and 3% above $2,000,000, with a further 2% on the residential portion above $3,000,000.
The newly built home exemption reduces or eliminates that tax when you buy a qualifying new home to live in. Since April 1, 2024, the limits are:
| Fair market value | Exemption |
|---|---|
| $1,100,000 or less | Full exemption |
| More than $1,100,000 and less than $1,150,000 | Partial exemption |
| $1,150,000 or more | None |
Before April 1, 2024 the limits were $750,000 and $800,000. Some web pages and older brochures still quote those numbers. If your title registers after April 1, 2024, the $1,100,000 and $1,150,000 figures apply.
The Province lists three sets of conditions. All of them have to be true.
Notice what is missing. There is no first-time buyer test for this exemption, and no requirement to have lived in BC for a year. A move-up buyer who has owned three homes can still qualify on a new condo. That is the biggest difference from the first-time home buyers' exemption.
The Province defines a newly built home as one of the following, each as long as nobody has lived in it since it was built, placed or converted:
The last two cover things like a duplex split on a subdivided lot or a commercial building turned into lofts. A show suite or a unit a builder rented out may raise questions. If anyone lived in it, ask the builder and your lawyer or notary before you count on the exemption.
Between $1,100,000 and $1,150,000 the exemption shrinks on a straight line. The Province's formula is:
Exemption = PTT × ((1,100,000 + 50,000 − fair market value) ÷ 50,000)
Here is how that works at two prices. The PTT column is the general tax before any exemption.
| Fair market value | PTT before exemption | Share exempt | Exemption | PTT you pay |
|---|---|---|---|---|
| $1,100,000 | $20,000 | 100% | $20,000 | $0 |
| $1,120,000 | $20,400 | 60% | $12,240 | $8,160 |
| $1,140,000 | $20,800 | 20% | $4,160 | $16,640 |
| $1,150,000 | $21,000 | 0% | $0 | $21,000 |
For example, at $1,120,000 the PTT is $2,000 on the first $200,000 plus $18,400 on the next $920,000, which is $20,400. The share exempt is (1,150,000 − 1,120,000) ÷ 50,000 = 0.6, so the exemption is $12,240.
The test uses fair market value, not just the number on your contract. If upgrades or a parking stall are bought separately, ask your lawyer or notary how they affect the value reported on the return.
A bigger lot can still get a partial exemption. The Province counts the home plus only a 0.5-hectare slice of the land. Its own example: a $350,000 home on 2 hectares of land worth $700,000 (total $1,050,000). Eligible value is $350,000 + ($700,000 × 0.5 ÷ 2) = $525,000, which is half the total. So half the $19,000 tax is exempt and $9,500 is payable. A second building on the property besides your home also limits you to a partial exemption.
Many first-time buyers of presale condos qualify for both. The Province says you can choose whichever gives you the greater benefit. You can't stack them. Compare the two on a new condo:
| Purchase | PTT before exemption | With first-time buyer exemption | With newly built home exemption |
|---|---|---|---|
| $800,000 new condo | $14,000 | $6,000 payable (max $8,000 off) | $0 payable |
| $1,000,000 new townhouse | $18,000 | Not eligible (over $860,000) | $0 payable |
The first-time buyers' program removes tax on the first $500,000 only, which caps it at $8,000. On new construction the newly built home exemption is usually the stronger choice. For resale homes it is not available at all, so the first-time program is the only option there. Run either case through our BC land transfer tax calculator.
The exemption is claimed on the property transfer tax return (exemption code 49) when the title registers. After that you have to earn it:
If you move out early, you keep part of the exemption but must repay a portion based on the number of days you moved out before the first year ended. If the owner dies, or the home is transferred under a separation agreement or a Family Law Act court order during the first year, the full exemption still applies.
Plan around this. A presale buyer who intends to rent the unit out for a year, or a family that won't move until the school year ends, can lose some or all of the exemption.
If you qualified but did not claim the exemption at registration, you can apply for a refund. If you bought vacant land, paid PTT, and then built a home on it, you may get that tax back when the land value plus the cost of the home is $1,100,000 or less (for land registered on or after April 1, 2024) and you meet the occupancy rules. In both cases you apply with form FIN 272 after the first anniversary of registration and within 18 months of it.
PTT is cash you must have at completion, separate from your down payment. Lenders check that you can cover your down payment and closing costs. So a full newly built home exemption BC buyers qualify for, worth up to $20,000, can change what you need to have saved. It does not change your down payment. New-build buyers should also check the federal GST/HST rebates with the Canada Revenue Agency, because GST is charged on newly built homes.
If you are buying a presale or a newly completed home, our first-time buyer team can set out the cash-to-close with and without the exemption, so you know which number to plan around. Start with a pre-approval or get in touch.
It is a provincial exemption that reduces or removes property transfer tax when you buy a newly built home to live in as your principal residence. Since April 1, 2024, the full exemption applies to homes with a fair market value of $1,100,000 or less, and a partial exemption applies between $1,100,000 and $1,150,000.
No. The Province's eligibility list for this exemption does not include a first-time buyer test. You must be a Canadian citizen or permanent resident, the home must be in BC, it must be used only as your principal residence, and it must meet the value and land-size limits.
At the $1,100,000 full-exemption limit, the property transfer tax you would otherwise pay is $20,000, so a fully exempt purchase at that price saves $20,000. Below that price the saving equals the tax on the purchase. Between $1,100,000 and $1,150,000 the saving shrinks on a straight line to $0.
You keep part of the exemption, but you must repay a portion of it based on the number of days you moved out before the end of the first year. The full exemption still applies if the owner dies, or if the home is transferred under a separation agreement or a court order under the Family Law Act.
The Province describes them as alternatives: a first-time buyer purchasing a newly built home can choose whichever exemption gives the greater benefit. If you already applied under the first-time buyers' program and want to switch, the Province asks you to contact the property transfer tax office.
Rules as of October 2026, from the Province of British Columbia (newly built home exemption page updated January 6, 2026; exemption amounts and property transfer tax pages updated December 3, 2025; first time home buyers' program page updated June 20, 2025).
This is general information, not financial advice. Speak to a licensed mortgage professional, and your lawyer or notary, about your situation.
Related guide: Closing Costs in BC, Line by Line
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