When you buy one of the townhouses for sale in East Vancouver or any such property in British Columbia, the province levies you a property transfer tax on the transaction. This is integral to the closing costs you’ll need to play to seal the deal, so it’s important for you to understand how these costs are calculated and plan accordingly. By doing so, you prevent coming up short at the closing table.
How is property transfer tax charged?
The province of British Columbia charges property transfer tax at 1 percent for the first $200,000 of the fair market value and 2 percent on the portion that exceeds $200,000 and up to and including $2,000,000. In addition, B.C. charge 3 percent on the portion of the fair market value greater than $2,000,000.
To give you a picture of how B.C. computes for property transfer tax, say you were buying a $300,000 home, then you’ll have to pay $2,000 (1 percent) for the first $200,000 and another $2,000 (2 percent) for the remaining $100,000. Adding it all up, your total property transfer tax would be $4,000. Read more from this blog: http://bit.ly/2m9xEEa