Ontario Land Transfer Tax Refund

Ontario Land Transfer Tax Refund to be Extended Indefinitely!

To continue helping families buy their first home and to support job creation in the housing industry, the Finance Ministry announced that the Ontario Government passed legislation to extend the Land Transfer Tax (LTT) refund indefinitely.

The LTT refund was first introduced in the 1996 Ontario Budget. The land Transfer Tax refund applies to first-time buyers of newly built homes. The maximun refund was increased to $2,000 ferom $1,725 as part of the 1999 Ontario Budget. The higher refund applies to purchase and sale agreements entered into after March 31, 1999 The maximum refund of $2,000 equals the land transfer tax payable on a house valued at $227,500.

How do I know I qualify for a refund?

• You must be at least 18 years old
• The refund applies to any newly built home
• You cannot have previously owned a home, or an interest in a home, anywhere.
• If you have a spouse, he or she cannot have previously owned a home, or an interest in a home, anywhere.

How much is the refund?

The amount of the refund will be the entire amount of tax paid or payable, up to a maximum of $2,000. If you own less than 100% interest in the new home, the amount will be reduced and calculated according to the amount of your interest in the new home. For example: If you own 100% of your new home and you paid $250,000 the amount of land tranfer tax payable if $2,225. You will receive a refund of $2,000 (the maximum). If however, you owned 50% interest in your new home, the amount is 50% of $2,000 or $1,000.

How do I get the refund?

You can receive a same-day refund of the land transfer tax when your lawyer files an affidavit for refund at the land registry affice at the time of registration.