Land Transfer Tax Refund for First-Time Home Buyers
Land Transfer Tax applies to all transfers of land in Ontario.
First-time homebuyers may be eligible for a refund of all or part of the tax.
- For agreements of purchase and sale entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home.
- For agreements of purchase and sale entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.
How much is the Refund?
The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue. No interest is paid on this refund.
To claim a refund, you:
- must be at least 18 years of age;
- must occupy the home as your principal residence within 9 months of after the date of transfer; and
- cannot have owned a home, or an interest in a home, anywhere in the world.
- your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse; and
- in the case of a newly constructed home, you must be entitled to a Tarion New Home Warranty.
"The above as printed by the Ontario Ministry of Revenue"
Now, this is not to mention the $750 legal fee rebate for first time buyer. We have all heard the the Home Depot commercial regarding the money back from the government regarding renovations. So, this means you out there that who are not first time buyer's are not completely left out in the cold. Sounds too good to be true, this is just another way that the Government is trying to get the economy up and running.
The interest rates are the lowest they have been since 1971. This means it's a good time to buy or refinance as well. Yes, there is a penalty to refinance if you still have time left on your mortgage and it is not open. This means you need to speak with your mortgage broker and see if it makes sense to refinance.