When your application for exemption from property transfer tax under the First Time Homebuyers’ program is received, a letter is sent to you confirming receipt of your application. This confirmation letter outlines requirements that must be met during the first year after you register the transfer at the Land Title Office.

If your property purchase was registered on, or after, February 20, 2008, you are no longer required to meet any financing requirements to qualify for the First Time Home Buyers’ Exemption, or provide financing information in your year-end follow-up letter.

If your property purchase was registered before February 20, 2008, you must meet the financing requirements that were in place when you purchased the property. However, effective February 20, 2008, you are free to pay down any amount owing on your mortgage.

If your property purchase was registered before February 20, 2008, and you paid down your mortgage before February 20, 2008, the following requirements apply to you.

• For all areas of British Columbia, the allowable mortgage paydown limit is the greater of $13,000 or an amount that reduces your mortgage to 70 per cent of your property’s fair market value.
• Regular and lump sum payments made against the principal of your mortgage are used to determine how much your mortgage had been reduced.
• If your financing allowed for amounts to be borrowed, in addition to the amount borrowed to finance the purchase of your principal residence, such as re-advanceable mortgages or lines of credit, payments you made against the various principal amounts are pro-rated between the various amounts borrowed.
• If you paid down more than the allowable limit, you may be allowed to keep a portion of the exemption based on the date you went over the limit.
• It is important that you have your lender/mortgage holder provide this information immediately to confirm that you are still eligible to keep the exemption. If this information is not received, your exemption will be denied.
• The Ministry of Small Business and Revenue will send you a letter one year after the purchase of your home requesting details of the your financial account(s) that were registered against your property.
• On or after February 20, 2008, you may pay down any amount of your financing and remain eligible for the First Time Home Buyers’ Exemption.

First Time Homebuyers’ Exemption Claim – Year End Financing Follow-Up form.