If you are shopping for a brand-new home, townhouse, or condo in Greater Victoria, you might be eligible to skip one of the largest closing costs in British Columbia.
While the standard BC First-Time Home Buyers' Program is fantastic, its strict price caps can make it tough to use in our local market. Fortunately, the provincial government offers an alternative tax break: the BC Newly Built Home Exemption.
The best part? You do not need to be a first-time buyer to qualify. This incentive is designed purely to encourage the purchase of newly constructed properties, offering substantial property transfer tax (PTT) relief to anyone moving into a fresh build.
Before you fall in love with a floor plan, make sure to browse the latest eligible inventory on our Greater Victoria New Construction Real Estate search page to find active builds across the Westshore, Saanich, and the Victoria Core.
How Much Can You Save? The Thresholds
The standard BC Property Transfer Tax can quickly add up to a multi-thousand-dollar expense. By utilizing the Newly Built Home Exemption, the amount you save scales directly with the fair market value of the home:
Full Exemption: You pay $0 in Property Transfer Tax on newly built homes with a fair market value of $1,100,000 or less. This keeps up to $20,000 in cash in your pocket.
Partial Exemption: A sliding-scale partial exemption is available for properties valued between $1,100,000 and $1,150,000.
No Exemption: Properties with a fair market value of $1,150,000 or greater do not qualify for this program, and standard PTT rates apply.
Do You and the Property Qualify?
To claim this exemption when your legal professional registers your transaction, both you and the home must meet specific provincial criteria.
Individual Requirements
You must be a Canadian citizen or permanent resident.
You must use the property as your principal residence (investment properties or short-term rentals do not qualify).
You must move into the home within 92 days of registration and continuously occupy it for at least one full year following the purchase date.
Property Requirements
The home must be a qualifying new construction. This includes newly built houses, presale condominiums, brand-new townhomes, or a substantially renovated building.
The parcel of land must be 0.5 hectares (1.24 acres) or smaller.
Quick Comparison: Exemption Limits
Property Fair Market Value → Exemption Status → Exemption Amount
$1,100,000 or less → Full Exemption → Saves up to $20,000
$1,100,001 to $1,149,999 → Partial Exemption → Sliding-scale tax reduction
$1,150,000 or more → No Exemption → $0 (Standard PTT applies)
Real Examples in Today's Victoria Market
Greater Victoria's new construction market is highly dynamic, offering versatile property types that align perfectly with these tax thresholds. Because the exemption applies fully to properties under $1,100,000, you can maximize your cash savings across a variety of layouts:
Move-In Ready Townhomes: Buyers can routinely find luxury 3-bedroom, 4-bathroom townhouses listed right around $999,900. Purchasing a brand-new townhome at this price point qualifies you for a full tax exemption, keeping significant cash in your bank account on closing day. You can view similar active layouts on our Greater Victoria New Construction Real Estate page.
Master-Planned Communities: If you look at popular family-oriented neighborhoods, options like brand-new 3-bedroom end-unit townhomes are hitting the market starting around $749,999. Because these fall well within the $1.1M limit, your provincial property transfer tax is wiped out completely. You can explore available configurations on our Greater Victoria New Construction Real Estate page.
Affordable Entry-Level Condos: For those looking for single-level living or a lower-maintenance lifestyle, brand-new 1-bedroom condominium units start as low as $449,900. This offers an incredibly affordable, tax-free entry point into local homeownership. Track live pricing tiers through our curated Greater Victoria New Construction Real Estate feed.
Ready to see what is currently available under the $1.1M threshold? Head straight over to our Greater Victoria New Construction Real Estate page to filter listings by price, neighbourhood, and layout to maximize your savings.
Disclaimer: This article is provided for informational and educational purposes only based on the official guidelines from the Province of British Columbia. Government tax policies, exemption limits, and eligibility parameters are subject to provincial review. Always consult a qualified Certified Professional Accountant (CPA) or a British Columbia real estate lawyer to verify your personal eligibility before removing subjects on a property.
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