LAND TRANSFER TAX REFUND

Program

First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial land transfer tax. The maximum provincial land transfer tax (LTT) rebate for first-time buyers is $2,000.

Details

• Provincial LTT is payable anywhere in Ontario
• Maximum provincial LTT first-time buyer rebate is $2,000 (equivalent to the provincial LTT payable on a $227,500 property).
• For RESALE homes, the provincial rebate applies only to first-time buyers who entered into Agreements of Purchase and Sale AFTER December 13, 2007.
• First-time buyers of NEWLY CONSTRUCTED HOMES are eligible for the provincial rebate even if they entered into Agreements of Purchase and Sale prior to December 13,
  2007.
• The provincial LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.landtransfertax.com):
  • 0.5% of the amount of the purchase price up to and including $55,000, plus
  • 1% of the amount of the purchase price between $55,000 and $250,000, plus
  • 1.5% of the amount of the purchase price between $250,000 and $400,000, plus
  • 2% of the amount of the purchase price above $400,000

First-Time Buyer Eligibility

To be eligible as a first-time buyer for the provincial LTT rebate:

• The purchaser must be at least 18 years of age.
• The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
• The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
• If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world while he or she was the purchas- er’s spouse. If this is the case, NO refund is available to either spouse.
• Note: If a purchaser’s spouse owned an interest in a home BEFORE becoming the purchaser’s spouse, but not while the purchaser’s spouse, the purchaser may be eligible for some rebate.

For more information

Contact the Ministry of Revenue at 1-800-263-7965 or visit www.fin.gov.on.ca.

Due to regular changes in government programs, OMDREB doesn't guarantee that this is the most recent information. Please see the respective websites for the most up-to-date information.