What Property Qualifies for the Exemption?

What Property Qualifies for the Exemption?

The First Time Home Buyer (FTHB) program provides a full exemption from property transfer tax only on properties where:

1. The improvements on the property become the principal residence (whetheror not they are formally classified as residential),
2. The land is 0.5 hectares (1.24 acres) or smaller,
3. The value of the land plus improvements falls below the set threshold amount of $425,000.

The current threshold amount applies to purchases registered on, or after, February 20, 2008.

Partial exemptions from property transfer tax are available in certain circumstances:

1. Where part of the improvements on the land are used for purposes other than the purchaser's primary residence, such as where part of the improvement is used for commercial purposes or where there is a separate dwelling or residential improvement on the land, only the portion that is the purchaser's primary residence is eligible for the exemption.
2. Where the land is larger than 0.5 hectares, only the residential improvement and0.5 hectares of the land are eligible for the exemption. For example, a one hectare vacant parcel of land is purchased. Only 0.5 hectares is eligible for the exemption. The fair market value of entire parcel is $100,000.
3. Where a property has a fair market value of up to $25,000 more than the threshold amount, the property is eligible for a partial exemption.