December 16, 2007
Land Transfer Tax Rebates
Ontario Program (LTT)
First-time home buyers who purchase a new home will receive a rebate of the Provincial Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum Provincial LTT rebate is $2,000.
Details
The 1996 Ontario Budget announced a special one-year provision to the Provincial LTT that was renewed every year and is now a permanent program.
FIRST-TIME BUYERS who purchase a new home will receive a rebate of the Provincial LTT. All other buyers will continue to pay the full applicable tax.
The maximum rebate is $2000. If an individual owns less than 100% interest in the newlybuilt home, the amount of the rebate would be reduced and calculated according to the amount of interest in the home.
A rebate of $2,000 is equivalent to the Provincial LTT payable on a purchase price of $227,500 (net of GST).
Only individuals who are at least 18 years of age, have not (or spouse) previously owned an interest in a home anywhere qualify for the rebate.
Individuals who have received an Ontario Home Ownership Savings Plan (OHOSP) based refund of the Provincial LTT do not qualify.
A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another. The Provincial Land Transfer Tax is a percentage of the value of the property based on a graduated scale:
- 0.5% on amounts up to and including $55,000;
- +1.0% on the amount exceeding $55,000 up to and including $250,000;
- +1.5% on amounts above $250,000 up to and including $400,000 for residential
- +1.5% on the amount in excess of $250,000 for business properties;
- +2.0% of the amount in excess of $400,000. [Residential only]
For more information call the Ontario Finance Ministry at 1-800-263-7965.
Toronto Program (TLTT)
First-time home buyers who purchase a re-sale or newly constructed home will receive a rebate of the Toronto Land Transfer Tax (TLTT).
Details
The City of Toronto provides a rebate of the TLTT to first-time home buyers of re-sale or newly constructed homes.
The maximum Toronto rebate is $3,725 (equivalent to the TLTT payable on a $400,000 home).
According to the City of Toronto, eligibility rules for the TLTT first-time buyer rebate will mirror provincial rules, as follows: The purchaser must be at least 18 years of age.
The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse. If this is the case, NO refund is available to either spouse. Note: If a purchaser’s spouse owned an interest in a home BEFORE becoming the purchaser’s spouse, but not while the purchaser’s spouse, the purchaser may be eligible for some rebate.
The tax is a percentage of value of the property based on a graduated scale:
- 0.5% of the amount of the purchase price up to and including $55,000, plus
- 1% of the amount of the purchase price between $55,000 and $400,000, plus
- 2% of the amount of the purchase price above $400,000
For additional information, contact the City of Toronto at 416-338-0338
Although we believe the above information is accurate it is not intended to be legal or financial advice. We accept no responsibility for any loss arising from any use or reliance on the information contained herein.