2017 Changes to Ontario Land Transfer Tax

As of January 1, 2017 Ontario’s first-time home buyers are eligible to receive a $4,000 land transfer tax rebate, an increase of $2,000 from the previous year.

Here are a few examples of the amount you will receive depending on your home purchase price.

Land Transfer Tax Chart, Ontario, 2017

For additional home purchase amounts visit OREA’s online rebate calculator:  http://firsthomerebate.ca/

Do you qualify? Here are the qualifying factors:

  • Must be at least 18 years old
  • You and your spouse are first-time homebuyers
  • Your purchased home will be your principal
  • You are a Canadian citizen or permanent resident
  • You entered into a purchase agreement on or before November 14, 2016

To claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home, anywhere in the world while he or she was your spouse. Previous ownership in a home means you do not qualify for the land transfer tax first-time homebuyers refund. The method of acquiring the home (e.g., purchase, gift or through an inheritance) is not relevant.

You cannot re‑qualify as a first‑time homebuyer.

Examples – Parent and Child

Where a parent who is not a first‑time homebuyer, and a child who is a first‑time homebuyer, purchase a home with equal 50/50 interests, the child may claim a refund of 50% of the land transfer tax refund. The child’s claim cannot exceed 50% of the maximum allowable refund (i.e., 50% of $2,000 for conveyances or dispositions prior to January 1, 2017 or 50% of $4,000 for conveyances or dispositions on or after January 1, 2017). Further details on this topic can be found here: (http://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html)

Example ‑ Spouse

A qualifying purchaser may also claim a refund in proportion to his or her spouse’s interest if that purchaser’s spouse has owned a home before becoming the purchaser’s spouse, but not while being that purchaser’s spouse.

My partner and I are buying a home together. I have owned a home, but he has not. Does he qualify for the first‑time homebuyers refund?

Your partner’s eligibility for a refund depends on whether you are spouses as defined in section 29 of the Family Law Act. Please refer to the Definitions section for the meaning of spouse.

If you are not spouses, then your partner may claim a refund based on his interest acquired in the home. If you are spouses, your partner may claim a refund up to the maximum refund amount applicable to your transaction (you can claim the refund for your interest and your partner’s interest), as long as you did not own a home while you were each other’s spouse. If you did own the home while you were spouses of each other, then your partner does not qualify for a refund even if you did not live in the house together.

Time Limit to Apply for Refund

A qualifying purchaser must apply for the refund within 18 months after the date of registration of the conveyance or the date the unregistered disposition occurs.

For additional details on Ontario’s First‑time Homebuyers Land Transfer Tax, please visit the Ontario Ministry of Finance’s web page here: http://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html

NOTE: The Ontario Land Transfer Tax is separate from the Toronto Land Transfer Tax.  When purchasing a home in Toronto,  Ontario Land Transfer Tax is payable, in addition to, the Toronto Land Transfer Tax.

The above information has been gathered from http://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html and http://firsthomerebate.ca/



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