Land Transfer Tax
When a person buys a house, they must pay Ontario provincial land transfer tax, which is calculated based on the purchase price. It is assessed, when a deed is registered, transferring ownership of a property from the seller to the buyer. First-time home buyers may be eligible for a reimbursement of some or all of the applicable land transfer tax.
The criteria to qualify for this refund are as follows:
• The buyer must be a Canadian citizen or a permanent resident of Canada.
• The buyer must be 18 years of age or older.
• The buyer must occupy the home as a principal residence within nine
months of registration.
• The buyer cannot have owned a home anywhere in the world. (This is
confirmed by signing an affidavit with a lawyer.)
• If the buyer has a spouse, the spouse cannot have owned an eligible home
or had any ownership interest in an eligible home anywhere in the world
while he or she was the buyer’s spouse. (This is confirmed by signing an
affidavit with a lawyer.) If they have, then a refund would not be available to
either spouse.
Land Transfer Tax Calculation
The land transfer tax is calculated on a sliding scale of percentages dependent on the value of the property. When the deed to the property is transferred to the buyer’s name, the lawyer will arrange for the land transfer tax to be paid.
First-time buyers refund (new and resale houses), First-time buyers of newly constructed and resale homes are eligible for a full or partial refund of the land transfer tax.
The maximum amount of a refund of the land transfer tax to buyers of a resale home is $4,000. Based on Ontario’s land transfer tax rates, this refund will cover the full tax for homes with a purchase price of up to $368,000. purchased for more than $368,000, buyers will receive the full $4,000 rebate and pay the remaining balance of the land transfer tax owing.
Ontario Land Transfer Tax Calculator
Up to $55,000 X 0.5% of total purchase price
From $55,000 to $250,000 X 1% of total purchase price
From $250,000 to $400,000 X 1.5% of total purchase price
From $400,000 up X 2% of total purchase price
If you more information about the buying process, call or DM me. I will be glad to help!
Bhupinder Singh
Realtor®️ Salesperson
Century 21
First Canadian Corp.
Phone: 647-323-5310
Email: bhupinder.singh2@century21.ca