Buying a home has many costs associated to it. Knowing where you can save any bit of money can help you prepare in advance and make the best decision to suit you. First time home buyers can take advantage of this tax break.
Property Transfer Tax (PTT)
First time home buyers get a break on this tax.
They pay $0 PTT on homes with a purchase price of $425,000 or less, but they pay full PTT on homes with a purchase price above $450,000.
Further Example: If two people buy a home together, and one is eligible for the First Time Home Buyers Special rate, and one isn't, then tax will be charged proportionately to their ownership share.
Homeowners who claim the First Time Home buyers PTT Exemption must live in the home for at least one year after purchasing it.
All types of real estate pay the same PTT rate, whether the property is used, new, or vacant land.
The PTT rate is based on 1% of the first $200,000 of price, and 2% thereafter (except first time buyers below $450,000).
Homes are not charged PTT on the HST component of the price, for sales where HST or GST applies.