Land Transfer Tax Rebate Doubles for First-Time Home Buyers in Toronto
When you plan to pursue a property or show interest in a property in Ontario, it’s understood that you will have to pay land transfer tax. For the very first-time, the home buyers of an appropriate home may be in line for a refund of almost all or a part of the tax. The most basic requirement to claim a land transfer tax rebate or refund is that you should be at least 18 years old, you must not have bought a home or any interest regarding a home in any corner of the world and the same conditions, for your spouse too while he or she was your spouse. Already existing ownership in a home clearly indicates that you are not eligible for the land transfer tax first-time home buyers’ refund. Getting a home with means of inheritance, gift or purchase is not considered to be admissible.
You can’t re certify yourself as a first time home buyer. For other policies or federal programs, this rule may differ.
Basic Information
Land transfer tax employs all types of conveyances of property in Ontario. First time home buyers may apply for a tax rebate of all or part of the tax payable.
For agreements of purchase and sale entered into-
- Before December 14, 2007, the refund only applies on the purchase of a brand new constructed home.
- After December 13, 2007, the refund applies to all homes, whether newly constructed or resale.
Eligible taxpayers may demand an instant refund at the time of registration:
A. In case of electronic registration, by completing the required statements which comes under the Explanation tab of the electronic land transfer tax affidavit
Or
B. In case of registering on paper, by filing an Ontario Land Transfer Tax Rebate Affidavit for First Time home buyers of Eligible Homes form at the Land Registry Office.
If the refund is claimed at the time of registration, it may allow for the land transfer tax which would be payable. If the refund is not claimed at the time of registration, then, the tax must be paid and a claim for the refund can be appeased to the Ministry of Finance. On this refund, zero interest is paid.
Refund Amounts
• The maximum amount of the refund is $2,000 for conveyances which befall before January 1, 2017.
• The maximum amount of the refund is $4,000 starting from January 1, 2017. It is applicable only to conveyances which befall on or after January 1, 2017, not considering the date the agreement of purchase and sale was signed.
• Starting from January 1, 2017, zero land transfer tax would be payable by certifying first time home buyers on the first $368,000 of the value of the consideration for eligible homes. First time home buyers of homes more than $368,000 would be receiving a maximum refund of $4,000.
The amount of refund will decrease if one (or many) of the buyers is not actually a first time home buyer. The refund will be in proportion to the interest accomplished by the individuals who certify to get the refund.
Attributes to Get a Refund:
- The buyer must be at least 18 years old.
- The buyer must attain the home as their main residence within nine months of the date of transfer.
- The buyer must not have owned a certified home ever or an interest in a certified home, in any corner of the world, at any time.
- If the buyer has entered into an agreement of purchase and sale before December 14, 2007, the home must need to be a newly constructed home and also the buyer must be eligible for the Tarion New Home Warranty.
- In case the buyer has a spouse, then the spouse can’t have owned an eligible home or had any ownership interest in an eligible home, in any corner of the world, while he/she was the buyer’s spouse. In such case, zero refund is permitted to either spouse.
- The buyer is not allowed to have already received an Ontario Home Ownership Savings Plan i.e. OHOSP, based refund of land transfer tax.
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Over-and-Above Attributes
• Starting from January 1, 2017, eligibility for the first time home buyers’ refund program is defined only for Canadian citizens and permanent residents of Canada.
• As per convertible measure, buyers who are registered into agreements of purchase and sale on or before November 14, 2016, would continue to be certified for the refund without considering the citizenship or residency status.
• Buyers who would be certified for a refund otherwise but are not Canadian citizens or permanent residents of Canada when the transaction closes, will be having 18 months following registration to be certified. After acquiring Canadian citizenship or permanent resident status, these buyers may apply for the refund within the 18 month duration following registration of the conveyance or the date the unregistered conveyance befalls.
If the provided data does not perfectly direct your locus, then, refer to the Act and related regulations.
You may also contact-
Ministry of Finance
Land Taxes Section
33 King Street West, 3rd Floor
Oshawa ON L1H 8H9
• 1 866 ONT TAXS (1 866 668 8297)
• Fax: 905 433 5770
• 1 800 263 7776 for teletypewriter (TTY)
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