You didn’t think you could buy a house without giving the good ol’ government some tax did you? Of course you didn’t. If you are a first-time homebuyer though, you’re in luck.
Land Transfer Tax applies to all transfers of land in Ontario but first-time homebuyers may be eligible for a refund of all or part of the tax. The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable on closing.
If not claimed at registration, the refund may be still claimed for up to 18 months following the date of transfer of the property.
To claim a refund, you:
• must be at least 18 years of age;
• must occupy the home as your principal residence within 9 months of the date of transfer; and
• cannot have ever owned a home, or an interest in a home, anywhere in the world.
• your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse
If you budgeted for this expense, this is great news. Now you can buy new appliances or window coverings instead. Or better still, pay down the mortgage.
It’s always a pleasure to meet new people and to assist them in meeting to their real estate goals. If you would like to schedule a buyer or seller consultation with me, please feel free to contact me anytime at 705-446-1762 or send me an email.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg