Land Transfer Tax Rebate
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September 5, 2018

As a homebuyer living in the provinces of Prince Edward Island, British Columbia, and Ontario or in the city of Toronto, you can avail of a land transfer tax rebate. A facility available to people buying a home for the first time, you can claim a partial refund on the land transfer tax you pay.

Ontario Land Transfer Tax

If you’re buying a home in Ontario for the first time, you can request for a rebate or refund equivalent to the full amount that you pay as land transfer tax that may be a maximum of $4,000. However, the Ontario Land Transfer Tax Refund for First-Time Homebuyers facility is subject to certain conditions:

  • You need to be at least 18 years of age.
  • You need to move into the home within a period of 9 months after buying it.
  • You need to be buying a home for the first time.
  • If you’re married, your spouse must also be a first-time homeowner during the time of your marriage.

While you can get all the information you need at the  Land Transfer Tax Refund for First-Time Homebuyers website, here are some other factors you need to know:

  • According to the Ontario land transfer tax rates, a rebate equivalent to the complete tax amount can be claimed on homes of the value of a maximum of $368,250.
  • If the house you’re buying is more than $368,250 in value, you can avail of a rebate but you’ll have to pay the remaining land transfer tax.
  • If you are buying the house as a married partner and only one of you can avail of the rebate, you’ll need to pay only 50% of the applicable rebate.
  • You have a window of 18 months from the time the house is transferred in your name to apply for the rebate.
  • You can request the assistance of your real estate lawyer to submit the necessary application along with the required paperwork.
  • File your application for the land transfer rebate online or download and submit a filled Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes form.

Toronto Land Transfer Tax

As a resident buying a home for the first time in Toronto, you can avail of a rebate equivalent to the complete amount you paid towards municipal land transfer tax that is up to $3,725. You can also apply for both the Ontario rebate and Toronto rebate. However, you need to meet certain conditions to apply for the Toronto Municipal Land Transfer Tax Rebate for First-Time Purchasers. They are:

  • You need to be at least 18 years of age.
  • You need to move into the home within a period of 9 months after buying it.
  • You need to be buying a home for the first time.
  • If you’re married, your spouse must also be a first-time homeowner during the time of your marriage.

Do visit the Municipal Land Transfer Tax Rebate website for all the information you need. Here are some of the factors you need to be aware of:

  • According to the Toronto land transfer tax rates, the rebate is applicable on the complete tax amount on homes with a maximum value of $400,000.
  • If your home price is over $400,000, you can qualify for the rebate but you’ll have to pay the remaining land transfer tax.
  • If you’re buying the property along with your spouse but only one of you is a first-time homeowner, you can avail of 50% of the rebate.
  • If you meet the necessary conditions, your real estate lawyer can apply for the rebate online by Teraview at the time of registering the transfer deed.

British Columbia Land Transfer Tax

Under certain conditions, residents of British Columbia buying a home for the first time can apply for a rebate equivalent to the full amount of the land transfer tax they pay up to $7,500.

  • You need to be a permanent resident or citizen of Canada.
  • You need to live in BC for 12 consecutive months in the time just before you register your home. Alternatively, in the last 6 years, you need to have filed at least two income tax returns in B.C.
  • You need to be a first-time homeowner
  • You need to be a first-time recipient of the homebuyers’ exemption or refund.

You can find all the information you need at the First Time Home Buyers’ Program website. Here are some factors you need to be aware of:

  • According to the British Columbia property transfer tax rates, the rebate can be an equivalent of the complete tax amount on homes of a maximum of $475,000 in value.
  • If you’re buying a home of value more than $475,000 to $499,999, you can avail of only a part of the rebate.
  • If the home price is $500,000 and above, you’ll need to pay the complete applicable land transfer tax and no rebate is available.
  • If you meet the necessary conditions, your real estate lawyer will assist you in applying by way of the First Time Home Buyers’ Property Transfer Tax Return form at the time of registering the transfer of the home.
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