Ontario Land Transfer Tax Rebate to First Time Buyers Doubled to $4000.00 effective January 1, 2017

How much money could I receive?

The maximum amount of the refund is $2,000.

For Example:
Cost of Home Tax Payable Tax Refund Net Tax Payable
$100,000 $725 $724 $0
$200,000 $1,725 $1,725 $0
$300,000 $2,975 $2,000 $975

 

 

 

 

If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Finance, within 18 months after the transfer. No interest is paid on this refund.

How much money could I receive?
For conveyances or dispositions that occur before January 1, 2017, the maximum amount of the refund is $2,000.

Beginning January 1, 2017, the maximum amount of the refund is $4,000. The increased limit of $4,000 applies only to conveyances or dispositions that occur on or after January 1, 2017, regardless of the date the agreement of purchase and sale was signed.

Beginning January 1, 2017, no land transfer tax would be payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.

Limitation

The refund will be reduced if one (or more) of the purchasers is not a first‑time homebuyer. The refund will be proportionate to the interest acquired by the individuals who qualify for the refund.

Examples – Parent and Child

Where a parent who is not a first‑time homebuyer, and a child who is a first‑time homebuyer, purchase a home with equal 50/50 interests, the child may claim a refund of 50% of the land transfer tax refund. The child's claim cannot exceed 50% of the maximum allowable refund (i.e., 50% of $2,000 for conveyances or dispositions prior to January 1, 2017 or 50% of $4,000 for conveyances or dispositions on or after January 1, 2017).

In a situation where a parent is also on title to a child's property, such as at the insistence of a bank, it will be necessary to pay land transfer tax at the time of registration and apply for a refund from the Ministry of Finance.

If the parent did not acquire a beneficial interest in the property as a result of the conveyance:
•the ministry will accept the fact that the parent was on title as a trustee for the child, and
•the child would qualify for the first‑time homebuyers refund, provided that all other eligibility requirements are met, and evidence of the trust is submitted (e.g., a letter from the bank confirming that the parent is on title for mortgage purposes or a copy of a trust agreement). 

Example ‑ Spouse

A qualifying purchaser may also claim a refund in proportion to his or her spouse's interest if that purchaser's spouse has owned a home before becoming the purchaser's spouse, but not while being that purchaser's spouse.

The ability of a purchaser to include his or her spouse’s interest in determining the maximum refund is restricted if the spouse is not a Canadian citizen or a permanent resident of Canada on the date of the conveyance or disposition. For more information, read here.

My partner and I are buying a home together. I have owned a home, but he has not. Does he qualify for the first‑time homebuyers refund?

Your partner's eligibility for a refund depends on whether you are spouses as defined in section 29 of the Family Law Act. Please refer to the Definitions section for the meaning of spouse.

If you are not spouses, then your partner may claim a refund based on his interest acquired in the home. If you are spouses, and both of you are Canadian citizens or permanent residents of Canada, your partner may claim a refund up to the maximum refund amount applicable to your transaction (you can claim the refund for your interest and your partner's interest), as long as you did not own a home while you were each other's spouse. If you did own the home while you were spouses of each other, then your partner does not qualify for a refund even if you did not live in the house together.

How do I get the refund?

If you qualify, you can claim an immediate refund at time of registration in one of two ways:
• If registering electronically, complete the required statements under the "explanation" tab of the land transfer tax statements.
•If registering on paper, file an Ontario Land Transfer Tax Refund Affidavit For First-time Purchasers of Eligible Homes at the Land Registry Office.

Download: Ontario Land Transfer Tax Refund Affidavit for First-time Purchasers of Eligible Homes [PDF - 350 KB]

Do I qualify?

To get a refund of land transfer tax, you:
•must be at least 18 years old
•must occupy the home as your principal residence within nine months of the date of transfer
•cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, and
•if you entered into an agreement of purchase and sale before December 14, 2007, the eligible home must be newly constructed and you must be eligible for  the Tarion New Home Warranty.

If you have a spouse, your spouse cannot have owned an eligible home, or an interest in an eligible home, anywhere in the world while being your spouse.
 You must apply for a refund within 18 months after the date of the transfer.

 

Find a Land Registry Office

Refunds claimed after registering

If you did not claim the refund at the time of registration and paid all of the land transfer tax owing, you can apply for a refund. To do this, you must submit:
•an original, completed Ontario Land Transfer Tax Refund Affidavit for First-time Purchasers of Eligible Homes [PDF - 350 KB]
•a copy of the registered conveyance (transfer/deed)
•evidence of the amount of tax that was paid on registration
•a copy of the docket summary (if transfer was registered electronically)
•a copy of the agreement of purchase and sale (including all schedules, amendments and assignments)
•a copy of the statement of adjustments relating to the conveyance
•a copy of documents that provide proof of occupancy of the home, such as copies of telephone/cable bills, driver's licence, newspaper/magazine subscriptions, etc.
•for agreements of purchase and sale entered into before December 14, 2007, a copy of the Tarion New Home Warranty, which is also known as the Certificate of Completion and Possession

Send your application to:

Ministry of Finance
 Advisory, Objections, Appeals and Services Branch
 33 King Street West
 PO Box 625
 Oshawa ON L1H 8H9

The application and any refund payment may be audited by the Ministry of Finance. Charges may be laid and fines result if you obtain or attempt to obtain a refund by deceit, falsehood or any fraudulent means.

For more information, please check this source:  https://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html