What Residential Buyers Should Know About Land Transfer Tax Rebates (LTT)

Provinces in Canada require land transfer tax (LTT) for all residential property purchases. Ontario has a provincial land transfer tax and so does the city of Toronto. In the case of first-time buyers of new or re-sale houses however, these buyers are entitled to an LTT rebate. The maximum amount for a provincial LTT rebate is $2,000 while the maximum LTT rebate for Toronto is $3,725. All buyers who closed the Agreements of Purchase and Sale before December 31, 2007 are also permitted to a full rebate of Toronto LTT.

 

In order for first-time buyers to be eligible for a provincial or Toronto LTT rebate, the following requirements must be met: the purchaser must be at least 18 years of age, he or she must occupy the property as his or her principal residence no later than nine months after the date of disposition, he or she must not have previously owned a home or had any ownership interest in any residential property in the world at any time before the purchase. In addition, if the buyer has a spouse, the spouse must have previously owned a home or had any ownership interest in any residential property while he or she was the buyer’s spouse. However, if the spouse owned an interest in a house before becoming the buyer’s spouse, the buyer is still qualified for rebate.

 

Provincial LTT is payable anywhere in Ontario, including Toronto, while Toronto LTT is payable only for properties in the city itself. Toronto LTT rebates are in addition to provincial LTT rebates the buyer is eligible for. Rates for LTT can be easily computed using online calculators to determine just how much is at stake.

Savio Vaz

Savio Vaz

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CENTURY 21 Leading Edge Realty Inc., Brokerage*
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