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.

More Information

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

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

First time home buyer’s tax credit

Program : First-time home buyers may be eligible for a 15 per-cent income tax credit
for closing costs.

Detail

1. To assist first-time home buyers with the costs related to the purchase of a home.
2. The First-Time Home Buyers’ Credit (FTHBC) provides a 15 percent credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes, etc.), meaning maximum tax relief of $750.
3. Applicable to first-time buyers purchasing a home closing after January 27, 2009.
4. The FTHBC is claimable for the taxation year in which the home is acquired.
5. An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.