I’m so spitting mad this evening I could cry.
After the elation of signing my mortgage papers and downloading all the strata minutes and materials to read in advance of closing the deal on my real estate purchase, I found out I owe the government almost $4,000 cash for the privilege of getting into the second most expensive real estate market in Canada.
First a little background: I bought a two-bedroom condo in Regina for under $90,000 years ago. I sold it in April 2006, after I moved here. It was on the market for four months, I was paying rent here plus my mortgage, because the market hadn’t picked up yet in Saskatchewan. I didn’t have anything from that sale to afford a downpayment here, I barely broke even. So I’ve been renting the last five years, always with the dream of owning my own home again. I’ve also been socking a bit of money away in my RRSPs.
Did I mention I’m a single parent?
Now that I’m moving to Vancouver, I can withdraw up to $25,000 for a modest downpayment on a modest condo in Vancouver, under the federal First Time Home Buyer’s Plan. Yay! Deal’s almost done.
But wait! In B.C. There’s something called the B.C. Property Transfer Tax: one per cent of the first $200,000 value of the property, two per cent after that. If you’re a first time home buyer, you’re exempt. I naively thought if I was a first time home buyer to the Canadian government, I’d be one to the B.C. government too. After all, I worked on the interprovincial trade file years ago when I worked for government. We’re supposed to all be Canadians all under the same rules, aren’t we?
But a first time home buyer in the federal sense is not a first time home buyer in the provincial sense.
Because I’ve owned a place before and lived in it, no matter that it was years ago in a much less expensive market, I’m ineligible for a break on the B.C. Property Transfer Tax. I got the unpleasant news today – as I’m ready to close the deal – that the B.C. government wants almost $4,000 cash from me before I can transfer title of my little 600 square foot home that I worked so hard to buy.
Finance Minister Falcon, here’s a rhetorical question for you: I wonder what I would be spending that money on, stimulating the local economy, if I didn’t have to hand it over to the government?
- New furniture for my new home, from local businesspeople in Vancouver
- Paying someone to come and pack my belongings instead of me doing it myself, saving myself stress and making work for someone else.
- I could pay someone to come and paint my new condo rather than doing it myself.
- I could buy a subscription to the opera, or a theatre company, in my new city so I get to meet new people and take in its culture.
- I could contribute to the local community centre, or the United Way, or the Vancouver Foundation to make Vancouver a better place to live, because government sure is doing a piss-poor job of that right now.
But no, instead I’m scraping together $4,000 cash to hand over to the government in an inexplicable tax grab. I could understand if the rules were the same as the federal government’s – so as to catch real estate flippers or what-have-you. Even that rationale is sketchy though.
I don’t mind taxes, really I don’t. I just want them to be consistent and fair and transparent. This one came as a surprise and I am left scrambling to fit it into my plans.
Why in the hell would you want to make it even harder for people like me to get into home ownership? My mind is still boggling.
Good lord, moving is stressful enough as it is.














