If you are a home buyer for the first time, depending upon the considerations such as buying price or consideration and how you take the title to your property, you can claim to refund all or part of the land transfer tax (LTT). First-time homebuyers in Ontario are liable for a rebate of an LTT of up to $2, 000, 00, meaning that First-time homebuyers do not need to pay LTT at the first $227,500.00. If the property is in Toronto City, an extra rebate is available to registered home buyers for up to a limit of $3,725.00. If you have selected property in Toronto, you may visit website for legal formalities.
First-time homebuyers comply with the following conditions to qualify for the LTT refund:
- Must be 18 years of age;
- You must occupy your home as the main residence within 9 months of the transfer date;
- you cannot own an eligible home, anywhere in the world (emphasis added) have any eligible home or interest in any eligible home;
- If the buyer has a spouse, the spouse cannot have bought or owned a house anywhere in the world, while he or she was the buyer’s wife. If this happens, neither partner can get the LTT refund.
- If the purchasing and selling agreement was signed before December 14, 2007, you must be eligible for the New Home Warranty and the eligible home must be newly built.
- If the buying and selling deal is signed after 13 December 2007, the refund extends to all newly built or resold houses.
For more information, you may get in touch with criminal lawyer Newmarket.
Update For First-Time Homebuyers
If the purchasing and selling agreement is concluded by 14 December 2007, the eligible home must be newly built and you need to be eligible for the Tarion new home warranty.
If the buying and selling settlement was made after 13 December 2007, the refund would apply to all newly built or resold properties.
As of 1 March, the City of Toronto raised its First-time homebuyers discount to $4,475,000, a small $750 rise from $3,725, which reflects the efforts made by the Province of Ontario to support prospective purchasers.
In addition to the above eligibility criteria, the buyer can apply for and qualify for a rebate if he becomes a Canadian citizen or permanent resident within 18 months of the transfer.