New Ontario home buyers in 2017 will benefit from an increases to the Land Transfer Tax rebate. Announced last fall, this change doubles the rebate available to first-time homebuyers from $2,000 to $4,000.
Land Transfer Tax Rebate – At a Glance
Ontarians that are buying their very first home can claim a rebate of up to $4,000.00. This applies to all properties sold beginning January 1, 2017.
Effectively, these changes mean Ontario buyers outside of Toronto whose homes cost $368,000 or less will be refunded the entirety of the applicable Land Transfer Taxes.
Who is not Eligible?
In order to claim the rebate, you must be a Canadian citizen or permanent resident, and cannot have previously owned a home anywhere else in the world. If you are married, your spouse cannot have owned a home either. If they owned and sold a property before your marriage, however, you would still be eligible.
The property for which you are claiming the credit must be your primary residence within nine months of closing; investment properties are not eligible for the rebate.
In many cases, first-time homebuyers are receiving assistance from parents to purchase a property, and this may require that their parents be listed on the title to the property. Where your parents have already owned a home, this could disqualify you from receiving the rebate. It is possible to arrange the purchase to split the property 99% in your favour, which should be sufficient to qualify for 99% of the rebate.
Duncan Linton’s Real Estate team has experience with property transactions of all sizes and levels of complexity. We can advise you about your home purchase or sale, and make sure that you receive the tax advantages available, including the increased first-time homebuyer’s credit.