From Wiki

[edit] Property Transfer Tax

• This is a tax payable to register or change the title of a property at the land registry.

• The amount is set by each Province or Territory.

• The rates in British Columbia, for example, are 1% for the first $200,000 of the purchase price and 2% above $200,000. The tax payable on a $500,000 property is $8,000 [200,000 x 0.01 + (500,000 - 200,000) x 0.02].

[edit] Annual Property Taxes

• Just like the old system of Rates in the UK, municipalities collect an annual tax based on the value of your home or other real estate you own.

• This is to pay for municipal services, policing, water and sewage (sometimes billed separately), and a contribution to the Provincial education budget.

• The value of each property is reassessed every year. Assessment notices are mailed at the beginning of January.

• Bills are sent out in May and must be paid at the beginning of July.

• Real estate taxes are assessed on the owner of the property, not the occupier.

• If you are renting a place you do not have to pay this tax (although the cost will be included as part of the rent).

• In BC there is a discount for owner occupiers in all but the most expensive homes.

• There is a further discount for owner occupiers who are seniors and those with disabilities or have someone with a disability resident with them.

• Home owner grants and the grant for seniors/people with disabilities are not automatic; they have to be claimed on the property tax form.

• There are stiff penalties for non-payment, and if the tax is two or more years late the city can sell the property from under your feet.

• Because of this, if you have a mortgage, the bank usually insists that you pay the property tax monthly in advance to them, and they use this to pay the city when it becomes due.

[edit] GST

• A builder or developer is required to charge [GST] at 5% on new, or substantially renovated homes.

• If the home is sold for less than $450,000, and will be the principal private residence of the purchaser, then some of the GST can be reclaimed.

• For a home that costs less than $350,000 the amount of GST that can be claimed is 36% of the GST paid. The maximum claim is $6,300. (350,000 x .05 x .36)

• As the price increases the amount of GST that can be reclaimed is reduced. At $450,000 the GST is payable in full.

• Look for words such as "price includes net GST".

• This claim can be made by either the builder or the purchaser, so confirm the situation with your realtor and/or with your lawyer.