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 ONTARIO LAND TRANSFER TAX REFUND
The Province of Ontario has extended to first time home buyers the refund of Land Transfer Tax to include resale homes. Previously only new homes qualified. The maximum refund is $2,000 and will only cover agreements of purchase and sale after December 13, 2007.
The following Ontario Land Transfer Tax Refund eligibility requirements apply for new and resale homes:
1.) The purchaser must be at least 18 years of age.
2.) An application for refund must be made within 18 months after the closing date of the purchase.
3.) The purchaser must occupy the home as his/her primary residence within 9 months of the closing.
4.) The purchaser cannot of owned a home or had ownership interest in a home anywhere in the world.
5.) A spouse of the purchaser cannot of owned a home previously or had ownership interested in a home anywhere in the world while he/she was the purchasers spouse.
Properties that qualify for the Ontario Land Transfer Tax Refund are: detached and semi-detached homes including: dwellings that are joined to another above or below grade, townhouses, shares in a co-op, mobile homes, condominimums, duplexes, triplexes, fourplexes and manufactured homes.
For additional information and instructions on how to apply for the Ontario Land Transfer Tax Refund, please visit the Province of Ontario web site at: www.rev.gov.on.ca/english/taxes/ltt/index.html
ONTARIO LAND TRANSFER TAX RATES
Ontario Land Transfer Tax is paid by buyers of real estate in the Province of Ontario. It is included in the real estate closing costs that are paid to your lawyer.
Current Tax Rates (effective from June 1, 1989)
0.5% of the value of consideration for the transfer up to and including $55,000
1% of the value of consideration which exceeds $55,000 up to and including $250,000, and
1.5% of the value of consideration which exceeds $250,000, and
2% of the amount by which the value of consideration exceeds $400,000 for the land that
contains at least one and not more than two single family residences.
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