Land Transfer Tax Rebates.

First time home buyers of new and resale homes can get the land transfer tax rebate from provisional and Toronto Governments. The max provincial land transfer tax (LTT) refund for first time home buyers is $2,000  and the maximum Toronto Land Transfer Tax rebate for first time buyers is $3,725. A refund of the Toronto land transfer tax is also available for buyers who entered into Agreements of Purchase and Sale before Dec 31, 2007.

Provincial Land Transfer Tax

• Provincial Land Transfer Tax is payable anywhere in Ontario (including Toronto)

• Maximum provincial Land Transfer Tax rebate for first time home buyer is $2,000 (equal to the provincial  payable on a $227,500 real estate).

• For RESALE homes, the provincial refund can be applied only to first time home buyers who entered into Agreements of Purchase and Sale AFTER Dec 13, 2007.

• First-time buyers of NEWLY CONSTRUCTED HOMES are entitled to the provincial refund even if they entered into Agreements of Purchase and Sale before Dec 13, 2007.

• The provincial Land Transfer Tax for residential properties is calculated as follows

  • 0.5% of the amount of the Home 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
Click the link to use the Land Transfer Tax Calculator.

Toronto Land Transfer Tax:

• Toronto Land Transfer Tax is payable only for properties in the City of Toronto.

• Max Toronto Land Transfer Tax  first time buyer refund is $3,725 (equivalent to the Toronto  Land Transfer Tax payable on a $400,000 property).

• ANY buyer who entered into an Agreement of Purchase and Sale prior to Dec 31, 2007 is eligible for a FULL rebate of the Toronto  Land Transfer Tax.

• Toronto  Land Transfer Tax  refunds are in addition to any provincial rebates rebate that the buyer entitled to.

• The Toronto LTT for residential properties is calculated as follows ( Click here for An easy-to-use calculator.):

  • 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

Click the link to use the Land Transfer Tax Calculator.

First Time Home Buyer Qualifications

To be qualified as a first time home buyer for the provincial Land Transfer Tax rebate and/or Toronto Land Transfer Tax rebate,

• The buyer must be at least 18 years of age.

• The buyer must occupy the home as his or her principal residence no later than 9th months after the date of the conveyance or disposition.

• The buyer cannot have previously owned a home, or had any ownership rights in a home, anywhere in the world, at any time.

• If the purchaser has a wife, the wife cannot have owned a home, or had any ownership rights in a home, anywhere in the world while he or she was the buyers spouse. If this is the case, NO repayment 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 wife, the purchaser may be eligible for some refund.

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