Toronto Homes Land Transfer Tax Rebates For First Time Home Buyers
First time home buyers of new and resale properties in the provinces of Ontario, Prince Edward Island or British Columbia you are eligible for a provincial land transfer tax rebate to help you offset the cost of transfer tax on your home. There is also a rebate available for homes purchased in the City of Toronto.
To be considered a "first-time home buyer" for the Toronto and provincial LTT, you must be at least 18 years of age and not previously owned a home at any time anywhere in the world. If you are married, your spouse must not have owned or had any ownership interest in a home while you were married. First-time buyers of Toronto homes can qualify for a rebate equal to the maximum allowed amount of the land transfer tax.
In Ontario, the maximum rebate is up to $4,000. The rebate will cover LLT to a maximum home value of $368,333. A partial refund of 50% will be available if a spouse does not qualify.
In Toronto the maximum rebate is $4,475 and will cover LTT to a maximum home value of $400,000. The Toronto LTT rebate can be applied for in addition to the provincial Ontario rebate a first-time home buyer qualifies for.
In order to qualify for the Ontario Land Transfer Tax Refund you must:
- Be a Canadian citizen or a permanent resident of Canada;
- 18 years or older;
- Apply within 18 months of the date of transfer of ownership to qualify for the rebate;
- Must not have previously owned a home;
- Your spouse must not have owned a home during the period of your marriage;
- Live in the home within 9 months of transfer.
The rebate will cover the full tax amount on the purchase price of Toronto homes to a maximum of $368,333. If a home is valued at more than the maximum of $368,333, the remainder of the land transfer tax must be paid by the owner. If it is a joint purchase with your spouse and only one of you qualifies for the rebate, you will receive 50% of the maximum amount.
If you qualify a real estate tax lawyer will be able to help you complete the necessary paperwork to apply for a rebate or you can file your rebate claim electronically by downloading the Affidavit for Ontario Land Transfer Tax Refund. For more information visit the 'Land Transfer Tax Refund for First Time Home Buyers' website.