Etobicoke Homes for Sale
  Re/Max Realty Specialists Inc., Brokerage
Independently Owned and Operated
   
 
david@davidpylyp.com
416 233 9000
 
 
 
 
Mortgage Info
 
Land Transfer Tax REBATE

Land Transfer Tax Refund for First-Time Home Buyers

First-time buyers of BOTH re-sale, and newly constructed homes, will be eligible for a rebate of the provincial land transfer tax of up to $2000...

As announced in the 2007 Ontario Economic Outlook and Fiscal Review, the government proposes to expand the Land Transfer Tax Refund Program to include first-time homebuyers of resale homes. This measure would be effective for agreements of purchase and sale entered into after December 13, 2007. As a result of this change, first-time homebuyers of resale homes would be able to receive a refund from the provincial government of up to $2,000 of the land transfer tax paid. More

Land Transfer Tax applies to all conveyances of land in Ontario.  First time purchasers of newly constructed homes may be eligible for a refund of all or part of the tax payable.

The Benefit

The refund for first time purchasers of newly constructed homes may offset the land transfer tax ordinarily payable at the time of registration. The maximum amount refundable is dependent upon the date of the agreement of purchase and sale:

  • For agreements entered into after March 31, 1999, the refund will not exceed $2,000.
  • For agreements entered into on or before March 31, 1999, the refund will not exceed $1,725.

No interest is paid on this refund.

Eligibility

Requirements to qualify for a refund

  • The purchaser must be at least 18 years of age.
  • Applications for a refund must be made within 18 months after the date of conveyance or disposition.
  • The purchaser must occupy the home as his or her principal residence within 9 months of 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.

A spouse of the purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world while he or she was the purchaser's spouse.

How to Apply

Qualifying taxpayers may claim an immediate refund at time of registration in one of two ways:

Alternatively, if land transfer tax has previously been paid at the time of registration, qualified purchasers may apply for a refund by completing a Land Transfer Tax Refund Affidavit for First Time Purchasers of Newly Constructed HomesDownload PDF and forwarding it directly to the ministry.

Toronto Land Tranfer Tax Calculator




Land Transfer Tax Rebates (Provincial and Toronto)
 


Program


First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial and Toronto land transfer taxes. The maximum provincial land transfer tax (LTT) rebate for first-time buyers is $2,000 and the maximum Toronto LTT rebate for first time buyers is $3,725. A FULL rebate of the Toronto land transfer tax is also available for ALL buyers who entered into Agreements of Purchase and Sale prior to December 31, 2007.


Details


Provincial LTT

Provincial LTT is payable anywhere in Ontario (including Toronto)

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.NoHomeBuyingTax.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
Toronto LTT

Toronto LTT is payable only for properties in the City of Toronto.

Maximum Toronto LTT first-time buyer rebate is $3,725 (equivalent to the Toronto

LTT payable on a $400,000 property).

ANY purchaser who entered into an Agreement of Purchase and Sale prior to
December 31, 2007 is eligible for a FULL rebate of the Toronto LTT.

Toronto LTT rebates are in addition to any provincial LTT rebate that the buyer
qualifies for.

The Toronto LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.NoHomeBuyingTax.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 $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 and/or Toronto 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 purchaser’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.

http://www.toronto.ca/taxes/mltt.htm#rates 

More Information

Provincial LTT:
Ontario Ministry of Finance:
1-800-263-7965

Toronto LTT:
City of Toronto: 416-338-0338



 

 
 


  © DAVID PYLYP of Re/Max Realty Specialists Inc., Brokerage
Independently Owned and Operated
 
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of service provided by the real estate professionals who are members of CREA. Used under license
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license