Newly Built Home Exemptions 

Key Features of the Newly Built Home Exemption

1. Eligibility:
   • The exemption is available to anyone (not just first-time homebuyers) who purchases a newly constructed home.
   • The property must be newly constructed or substantially renovated, with a fair market value of $1,100,000 (effective April 1 2024)
   • The property must be 0.5 hectares or smaller.
   • Buyers must be individuals, not corporations or trusts.
   • Buyers must be Canadian citizens or permanent residents.
2. Exemption Details:
   • Full Exemption: If the property’s fair market value is $1,100,000 or less, the buyer may be eligible for a full exemption from the property transfer tax, which could result in significant savings.
   • Partial Exemption: A partial exemption is available for properties with fair market values just above the threshold. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying purchasers.
3. Residency Requirement:
   • To qualify for the exemption, the buyer must move into the home within 92 days of the registration date and continue to occupy it as their principal residence for at least the first year.
4. Application Process:
   • Like the First Time Home Buyers' Program, the application for the Newly Built Home Exemption is typically processed by your lawyer or notary during the property transfer registration. They will ensure that all eligibility criteria are met and that the appropriate documentation is filed.

Benefits of the Newly Built Home Exemption

• Cost Savings: The primary benefit is the reduction or elimination of the property transfer tax, which can be a substantial financial hurdle when buying a new home.
• Encourages New Home Construction: By offering tax incentives for new homes, the program supports the construction industry and contributes to housing stock.
• Accessibility to Newer Properties: It makes purchasing new properties more financially accessible for buyers, potentially encouraging higher standards of building and energy efficiency in residential properties.

Qualifications in detail:

1. Type of Property:
   • The property must be newly constructed or substantially renovated. A substantial renovation means at least 90% of the interior of the building must be renovated.
   • The property includes detached houses, semi-detached houses, townhouses, duplexes, condominiums, and manufactured homes that are placed and affixed on a new foundation.
2. Value of Property:
   • The fair market value of the property must be $1,100,000 or less to qualify for a full exemption.
3. Size of Property:
   • The size of the property must be 0.5 hectares or smaller.
4. Buyer Qualifications:
   • The buyer must be an individual, not a corporation or a trust.
   • Buyers must be Canadian citizens or permanent residents.
   • Buyers must use the property as their principal residence.
5. Residency Requirements:
   • The buyer or a family member must move into the home within 92 days of the registration date of the transfer of the property.
   • The property must continue to be the principal residence of the buyer for at least one year after the purchase.

Application Process:

• The application for the NBHE is typically handled by your lawyer or notary public during the property transfer process. They will assist in filing the necessary forms and ensuring that all criteria are met.

Documentation:

• Proof of citizenship or permanent resident status may be required.
• Documentation proving that the property is the principal residence may also be needed, such as government IDs, utility bills, or other official documents listing the address.

Important Considerations:

• If the property or buyer does not continue to meet the eligibility requirements within the first year of ownership, the exemption may be revoked, and the property transfer tax may be payable.
• If the value of the property exceeds $800,000, the property does not qualify for any exemption under this program.