Thursday, June 1, 2023

At a glance (2 minute read)

  • REBGV made recommendations to the provincial government to improve housing affordability for renters aiming to buy homes in Greater Vancouver.
  • The recommendations include a comprehensive review of the PTT, increasing the PTT exemption threshold for first-time home buyers, and exempting presales from the PTT.
  • REBGV also suggested implementing exemptions and incentives to ensure the proposed flipping tax doesn't penalize renters and proposed measures to help build rental housing supply..
Harriet Permut, REBGV director of government relations presenting to the BC Select Standing Committee on Finance and Government Relations, May 30, 2023

Renters throughout Greater Vancouver face major hurdles when they set out to buy an affordable home in our current market of rising prices, low inventory, and multiple offers.

Hurdles include saving a downpayment, locating an affordable home within reasonable commuting distance, and saving for the Property Transfer Tax (PTT). 

The Real Estate Board of Greater Vancouver (REBGV) made several recommendations on how to make home ownership more affordable during consultations with a provincial legislative committee on May 30, 2023.

Each year, the Select Standing Committee on Finance and Government Services tours the province to hear recommendations on how to spend next year’s provincial budget.

For more than 35 years, the REBGV has contributed to these discussions by advocating for greater housing affordability, reducing the PTT, and other proposals to make housing more affordable.

This year, REBGV urged the provincial government to: 

1. Commit to a broad-based review of the PTT

  • Conduct a comprehensive review of PTT, which hasn’t been done since the tax was implemented in 1987. 
  • Remove the PTT on any home costing less than $750,000 – for both new and resale homes.
  • Increase the First-Time Home Buyers’ Program PTT exemption threshold on resale homes to $750,000 from $525,000 to match the newly-built homes exemption.
  • Exempt presales from the PTT.
  • Index PTT thresholds using the consumer price index, and make adjustments annually for the 2% and 3% thresholds on a sliding scale tied to BC Assessment values.
  • Use PTT revenue from homes priced at more than $750,000 to provide financial incentives to renters buying missing middle homes in walkable, mixed-use, transit-oriented communities with smaller housing choices.

2. Ensure the flipping tax doesn’t penalize renters wanting to buy a home

The regulations for the flipping tax must:

  • include exemptions so that the tax doesn’t unfairly penalize those most likely to move;
  • ensure new-construction homes are exempted from the tax; and
  • ensure the tax doesn’t discourage investment in secondary suites that may be created under the province’s new secondary suite policy. 

3. Help build rental supply

Rental housing developers face escalating costs, making projects less viable. The province should:

  • Convince the federal government to exempt new not-for-profit rental developments from paying GST.
  • Create a provincial rebate program for the GST payable on new rental construction.
  • Create ultra-low-cost loans for developers building affordable rental buildings. 

Did you know?

A renter buying a modest Maple Ridge townhouse will pay almost $13,000 in PTT.

A renter buying a Maple Ridge townhouse

Benchmark price

Property Transfer Tax

Total Price

Down payment

Total loan

Mortgage rate

Monthly principal & interest

$747,000

$12,940

$759,940

$49,700

$697,300

6.49%

$4,666.45

Read the REBGV’s full submission.

In the news

We shared our submission with the media and generated prominent coverage: