Land Transfer Tax
Land transfer tax (LTT) is often overlooked when considering the total cost of purchasing a home.
When a buyer considers purchasing a home in most areas of the country, they will have to allow for thepayment of a tax which is sometimes referred to as a property purchase tax, but more generally known as a land transfer tax. The value of this tax is generally calculated on a percentage of the residential property's sale price, and the precise formula for the calculation of the amount of tax payable varies considerably from region to region, and sometimes just from one neighbourhood to the next.
There are a variety of rebates other schemes to keep this tax from overly depressing the demand for first time home purchases.
Ontario first-time homebuyer land transfer tax rebate.
The Ontario land transfer tax rebate is equal to the full value of the land transfer tax up to a maximum of $4,000 land transfer tax2
Eligibility
The buyer must be older than 18 years
The buyer must occupy the home within nine months of purchase
The buyer cannot have owned a home anywhere in the world
The buyer's spouse cannot have owned a home while being your spouse
If you are purchasing a new home, it must be eligible for home warranty
Based on Ontario land transfer tax rates, the rebate will cover the fully taxed amount on houses up to $227,500. For houses over $227,500, homebuyers will receive the maximum $4,000 rebate. To obtain this refund, you need to apply within 18 months after the purchase of the home.
Toronto first-time homebuyer land transfer tax rebate.
First-time homebuyers in Toronto of new and resale homes are eligible to receive a refund up to a maximum of $3,725.
Eligibility
The buyer must be older than 18 years
The buyer must occupy the home within nine months of purchase
The buyer cannot have owned a home anywhere in the world
The buyer's spouse cannot have owned a home while being your spouse
If you are purchasing a new home, it must be eligible for home warranty
The Ontario land transfer tax rebate is equal to the full value of the land transfer tax up to a maximum of $4,000
This calculator is for demonstration purposes only. Always consult a professional financial advisor before making personal financial decisions.
