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Land Transfer Tax Refunds for First-Time Homebuyers

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First time homebuyers are eligible for all or part refund of the land transfer tax. As of recent, the refund amounts are now a maximum of $4000, which is double the previous maximum of $2000.

In order to qualify, a list of requirements have been constructed:

  1. The purchaser must be at least 18 years of age.
  2. Must be a Canadian citizen or a permanent resident of Canada (those who have entered agreements of purchases before November 14, 2016 will still remain eligible for the refund regardless of residency or citizenship status).
  3. The purchaser cannot have owned a home or interest in a home in any country, at any time.
  4. The purchaser must must occupy the home as their chief residence within 9 months of the transfer date.
  5. If the purchaser has a spouse, the spouse cannot have owned nor have interest in eligible homes anywhere in the world, whilst being the purchaser’s spouse.
  6. The purchaser cannot have received the Ontario Home Ownership Savings Plan (OHOSP) prior.

A few other helpful facts to remember:

If one or more of the purchasers are not a first-time home buyer, the refund will be reduced.

The refund may be audited by the Ministry of Finance. Fines and charges maybe be dealt if person attempt to fraudulently acquire the refund.

The time limit to apply for this refund is within 18 months after the date of registration of the conveyance or the date the unregistered disposition occurs.

The refunds can be claimed at the electronic land registration system, at the land registry office, and the Ministry of Finance.

For further details visit http://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html.

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