Ontario government gives tax break to FIRST-TIME home buyers:
In its 2016 Fall Economic Statement, the Government of Ontario committed to increasing the land transfer tax (LTT) rebate for first-time home buyers from $2,000 to $4,000*. The new LTT rebate will help more young families achieve their dreams of home ownership. While this might not have a significant impact for Windsor/Essex due to our average home price of approximately $226,000, it is positive that the government is trying to help first time buyer get into the hot markets. Previously, a $2000 rebate would cover the LTT a home with a sale price of $227,500. Under the new rebate of $4000*, it will cover the LTT on a home with a sale price of $368,333. If your first home is purchased for more that $368,333, you would still owe the difference in tax after the $4000 rebate is applied.**
* Please note, the rebate is “up-to” $4000. If you purchase a home for $200,000, the LTT is $1750. You will get the $1750 rebate. You do NOT get a full $4000 rebate.
** If your first home is purchased for $500,000, the LTT is $6475. You would be eligible for the full $4000 rebate, and still have to pay the balance of $2475.
First-time home buyer eligibility in Ontario:
- You must be 18 years or older.
- You must occupy the home within 9 months of purchase.
- You cannot have owned a home or interest in a home anywhere in the world.
- Your spouse cannot have owned a home while being your spouse (but may be a previous home owner).
- If the home is newly constructed, it must be eligible for home warranty.
- Home buyers must apply for the refund within 18 months of purchase.
If you have any questions regarding the Land Transfer Tax, please feel free to give me a call: (519)791-9545