Can the PTT be financed?

If you’ve found a home you plan to buy, your REALTOR® will go over closing costs, including the Property Transfer Tax (PTT).

The PTT is a provincial tax of 1% on the first $200,000 and 2% on the remainder of your home price. For example, the PTT on a $600,000 home is $10,000.

When you register your property title you must pay the PTT, unless you qualify for the First Time Home Buyers’ Exemption.

Financing the PTT

A buyer with a conventional mortgage (more than 20% down payment) may be able to take the PTT out of their equity. If you have less than a 20% down payment you will likely be unable to do this due to lender requirements.

The PTT is a closing cost and closing costs can’t be financed as part of a mortgage. Mortgage insurance providers such as CMHC stipulate that applicants must be able to cover closing costs.

Lenders, however, look at each situation on a case-by-case basis. If a buyer has good credit and the ability to pay monthly costs, a lender may provide a line of credit or a loan to finance the PTT.


Read more:

No comments

Post Your Comment:

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.