Land Transfer Tax Refunds for First-Time Homebuyers

Ontario provides a refund for Land Transfer Tax to help first-time buyers reduce their LTT burden. Eligible buyers can receive a refund of up to $4,000. Here are the basic eligibility requirements:

• First-time buyer: You must be purchasing your first home and cannot have owned a home anywhere in the world. If you have a spouse, they must also be a first-time buyer.
• Canadian citizen or permanent resident: You must be Canadian citizens or permanent residents to qualify.
• Over 18 years old: You must be of legal age to own property in Ontario.
• Occupancy: You must occupy the home as your principal residence within nine months of the transfer date.

The refund is automatically applied at closing, reducing the LTT payable. For example, in a $600,000 transaction, a first-time buyer would only pay $4,475 in LTT after the refund, instead of $8,475. Land Transfer Tax and Refund in Toronto If you’re purchasing property in Toronto, you’ll also need to pay the Municipal Land Transfer Tax (MLTT), which doubles the LTT amount. To help alleviate this burden, Toronto offers a special rebate specifically for first-time homebuyers. Eligible first-time buyers can receive a rebate of up to $4,475 on the MLTT, in addition to the provincial refund of up to $4,000. How to Apply for the Rebate First-time buyers can apply for the LTT rebate through their lawyer, who will complete the required forms during the closing process. The rebate is usually applied immediately, lowering your upfront LTT costs. For more personalized advice and support, please don’t hesitate to reach out. Our team of experienced professionals is here to guide you through the process and ensure that you take full advantage of all available benefits.   Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. If you need legal advice or assistance, please consult with a licensed attorney in Ontario.