PTT before and after the newly built exemption
Post-April-2024 thresholds: full exemption to $1.1M, phase-out to $1.15M, no exemption above $1.15M. Assumes the buyer meets all eligibility rules.
| Price | PTT before | Exemption | PTT after |
|---|---|---|---|
| $600,000 | $10,000 | −$10,000 | $0 |
| $800,000 | $14,000 | −$14,000 | $0 |
| $1,000,000 | $18,000 | −$18,000 | $0 |
| $1,100,000 | $20,000 | −$20,000 | $0 |
| $1,125,000 | $20,500 | −$10,000 | $10,500 |
| $1,150,000 | $21,000 | −$0 | $21,000 |
| $1,200,000 | $22,000 | −$0 | $22,000 |
What the newly built home PTT exemption actually does
The BC newly built home exemption wipes out the Property Transfer Tax on the first $1.1 million of fair market value when you buy a newly built home as your principal residence. The exemption phases out between $1.1M and $1.15M. Above $1.15M, no exemption. The official program rules live on gov.bc.ca. The maximum savings is about $20,000 (the PTT on a $1.1M property under the bracket math).
What counts as a "newly built home"
The Province defines a newly built home as one of the following, previously unoccupied:
- A house built on vacant land (or land where the previous improvement has been demolished).
- A new apartment in a newly built or newly converted strata building.
- A newly built townhouse or rowhouse.
- A manufactured home that's permanently affixed to your land.
- A previously commercial building that's been substantially renovated and reclassified as residential.
The key word is previously unoccupied. Pre-sale condos that have never been lived in qualify. A two-year-old condo that the original buyer lived in for a year and is now re-selling does not. A house that was substantially rebuilt after demolition usually qualifies. A house that was renovated but kept most of the original structure usually doesn't.
The April 2024 threshold changes
Before April 1, 2024, the newly built exemption applied to properties priced at $750,000 or less with a small phase-out band. On April 1, 2024 the Province raised the thresholds to $1.1M full and $1.15M phase-out. At Fraser Valley new-construction prices, that change opened the program up to a much larger share of first-time and move-up buyers of new builds.
Who qualifies for the newly built exemption
Compared to the first-time buyer exemption, the newly built exemption is broader on prior ownership but tighter on what counts as "newly built". To qualify, you must:
- Be a Canadian citizen or permanent resident.
- Purchase a property that qualifies as "newly built" under the Province's definition (see above).
- Move into the property within 92 days of registration and live there as your principal residence for at least 1 year.
- Have a fair market value at or below $1,150,000. Full exemption up to $1.1M, phase-out to $1.15M.
You do not need to be a first-time buyer. A move-up family buying a brand-new Albion townhouse to live in as their primary residence qualifies, even if they've owned several other homes before. This is the program's biggest advantage over the FTB exemption.
How much you actually save
Maximum savings is around $20,000 — the PTT that would otherwise apply on a $1.1M purchase under the bracket math (1% on first $200K = $2,000, plus 2% on the next $900K = $18,000, total $20,000). Below $1.1M you save the full PTT. Between $1.1M and $1.15M the exemption shrinks linearly. The calculator above handles the phase-out automatically.
FTB exemption vs newly built exemption: which to claim
If you qualify for both (a first-time buyer purchasing a brand-new property), you can only use one. The choice is which saves more. Below $835K, both fully exempt the PTT and you save the same amount — pick the one whose criteria you're sure you meet. Above $835K and below $1.1M, only the newly built exemption gives full savings, so claim that. Between $1.1M and $1.15M, the newly built is phased out; if FTB still applies at lower prices on the property, run both calculators and use whichever's larger.
Common situations where the exemption gets denied
Three patterns we see most often.
The home was occupied before you bought it. Even a pre-sale where the original assignee took possession briefly before re-selling can disqualify the second buyer. The "previously unoccupied" test is strict.
The "substantial renovation" doesn't qualify. Substantial means more than 90% of the existing building was renovated. A kitchen-and-bathroom flip doesn't count. A full gut-and-rebuild down to studs usually does. There's case law defining the line — your notary will check.
The principal residence requirement. Same as the FTB exemption: move in within 92 days, live there for at least 1 year. Move out early without an approved exception (job relocation, etc.) and the Province can claw back the exemption.
How to use this calculator
Plug in the purchase price of the newly built home and the calculator returns the exemption amount. At or below $1.1M full exemption saves you the full PTT. Between $1.1M and $1.15M the partial calculator math runs automatically. Above $1.15M the exemption is zero. Most of the new-construction buyers we work with at FRIVE are under $1.1M for townhouses and condos, which means a full $20K of PTT savings on the closing-day cheque. Book a 20-minute chat with the FRIVE team if you're unsure whether your specific build qualifies.
Frequently asked questions
What's the maximum savings from the newly built exemption?
About $20,000. That's the PTT that would otherwise apply on a $1.1M fair market value under the bracket math (1% on first $200K plus 2% on the next $900K). The exemption wipes that out fully up to $1.1M, then phases out by $1.15M.
Does the newly built exemption require me to be a first-time buyer?
No. You can have owned any number of homes before and still qualify, provided the home you're buying qualifies as "newly built" and you'll use it as your principal residence. This is the biggest advantage of this exemption over the FTB exemption.
Does a pre-sale condo I bought 3 years ago still qualify?
Yes, provided you're the original purchaser, the condo has not previously been occupied (i.e., you take possession on completion), and you'll use it as your principal residence. The clock for "previously unoccupied" starts at the building's completion, not at the pre-sale signing.
Can I claim both the FTB exemption and the newly built exemption?
No. They're mutually exclusive on a single purchase. You can only claim one. Pick whichever saves more (see the comparison section above).
What counts as "substantially renovated"?
The Province uses a strict test: substantially all of the building's interior (except foundation, exterior walls, interior supporting walls, floors, roof, and stairs) must have been removed or replaced. Roughly speaking, a gut-and-rebuild down to studs qualifies. A surface-level reno does not. Your notary will confirm before claiming the exemption.
Does the newly built exemption apply to land-only purchases?
No. The exemption requires that a newly built dwelling exists on the property at the time of title transfer. Vacant land purchases pay full PTT.
What if I move out before the 1-year occupancy requirement?
The Province can claw back the exemption and charge the full PTT plus interest, unless you qualify for an approved exception (job relocation, marital breakdown, death of an owner, etc.). The default is one year minimum as principal residence.
Does the federal first-time buyer GST/HST rebate stack with the BC newly built exemption?
Yes. The federal rebate (Royal Assent March 12, 2026, up to $50,000 for first-time buyers of newly built homes up to $1M FMV) and the BC newly built PTT exemption are entirely separate programs and fully stackable for a first-time buyer of a new construction home.
What's the difference between "newly built" and "new construction"?
For exemption purposes, the two terms are interchangeable. The legal test is "previously unoccupied" — a property that has not been lived in since being built or substantially renovated. The marketing terms "new build," "brand new," and "newly constructed" all describe the same category as long as the unit is genuinely unoccupied.
Does the exemption apply to my pre-construction deposit?
The exemption applies at the time of title transfer, which for a pre-sale is typically completion day. The deposit you paid years earlier is irrelevant to PTT calculation. PTT is computed on the fair market value at registration, which is normally the purchase price you committed to at pre-sale, not the value at completion.
Sources
- Province of BC — Newly built home Property Transfer Tax exemption. gov.bc.ca/newly-built-home-exemption
- Province of BC — Property Transfer Tax overview. gov.bc.ca/property-transfer-tax
- Canada Revenue Agency — Federal first-time home buyers' GST/HST rebate. Royal Assent March 12, 2026. canada.ca/fthb-gst-hst-rebate
- FRIVE journal — Closing costs for a first home in the Fraser Valley. closing-costs-first-home-fraser-valley
