Here are the latest measures outlined in the 2024 budget by the BC Government that directly impact the mortgage industry and housing market in British Columbia.
Property Transfer Tax Exemptions: The 2024 budget introduces several changes to the Property Transfer Tax exemptions:
1. First-Time Homebuyers’ Program: The threshold for this program has been increased to reflect current market conditions. Qualifying first-time buyers can now benefit from a complete exemption on the first $500,000 of homes valued up to $835,000, potentially saving up to $8,000. According to the BC Government, this expansion is expected to make approximately 14,500 more individuals eligible for support in purchasing their first homes.
2. Newly Built Homes: Buyers of newly built homes valued up to $1.1 million will also see reduced costs through a newly implemented exemption.
3. Purpose-Built Rental Buildings: Eligible purpose-built rental buildings with four or more units will receive a property transfer tax exemption until 2030.
The BC Government estimates that adjustments to property transfer tax exemptions will save individuals approximately $100 million per year.
BC Home Flipping Tax: Starting from January 1, 2025, the BC Government is introducing the BC Home Flipping Tax as part of the Homes for People plan. This tax aims to deter speculators from inflating property prices by taxing profits made from selling residential properties within two years of purchase. There will be specific exemptions for life circumstances such as divorce, death, illness, and relocation for work. Revenue generated from this tax will be allocated towards building affordable housing across the province.
BC Builds: Budget 2024 allocates $198 million in new funding for BC Builds, a program that supports the development of new housing suitable for middle-income individuals and families. BC Builds utilizes government-owned and underused land, as well as lower borrowing rates, to offer low-cost financing for construction projects. By streamlining the development process and working closely with various stakeholders, BC Builds aims to deliver affordable housing within 12 to 18 months, significantly shorter than the current average timeframe of three to five years. These new units will be income-tested, ensuring that they remain affordable for middle-income earners, thereby addressing the housing needs of BC communities.
Our ongoing efforts: Our Government Relations Committee is actively reviewing these measures and continues to collaborate with industry partners to advise on housing policy that meaningfully supports homeownership and housing affordability in BC.
READ BC BUDGET 2024 - HOUSING MEASURES - https://strongerbc.gov.bc.ca/housing/