Land Transfer Tax Rebate Program

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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

City of Toronto - Municipal Land Transfer Tax (MLTT) Rebate Opportunities

As a taxation measure granted under the City of Toronto Act, 2006, Toronto City Council approved:

effective February 1, 2008, MLTT (Toronto Municipal Code Chapter 760 ) will be applied to purchases on all properties in the City of Toronto, in addition to the Provincial Land Transfer Tax
effective March 1, 2017, adopted item EX22.2, changed the MLTT rate structure and rebate eligibility criteria

First Time Purchaser Rebate

The first-time home purchase rebate applies to:

newly constructed
resale residential properties

The rebate does not apply to:

commercial, industrial or multi-residential properties

Prior to March 1, 2017

For conveyances and dispositions of beneficial interest in land of an eligible home prior to March 1, 2017, and a rebate of up to $3,725.00. The definition of a first-time purchaser is:

the purchaser is at least 18 years of age
the purchaser must occupy the home as their principal residence no later than nine months after the date of the conveyance or disposition
the purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time
if the purchaser has a spouse, the spouse cannot have owned a home, nor had any ownership interest in a home, anywhere in the world while they were the purchaser’s spouse

On or After March 1, 2017

For conveyances and dispositions of beneficial interest in land of an eligible home on or after March 1, 2017, and a rebate of up to $4,475.00. The definition of a first-time purchaser includes all of the above, and:

the purchaser is a Canadian citizen or permanent resident of Canada. If the purchaser becomes a Canadian citizen or permanent resident within 18 months of the transfer, they may apply for and may qualify for the rebate

Valid Canadian Citizenship Documentation

Canadian citizenship

Canadian passport
- valid or expired no more than five years
Birth certificate from Ontario or other Canadian province or territory (issued under Vital Statistics Act)
Canadian Certificate of Registration of birth abroad
Certified Statement of live birth from Ontario, or other Canadian province or territory
Certificate of Canadian Citizenship or Certificate of Naturalization (paper document or card, not commemorative issue)
Certificate of Indian Status (paper or plastic card)
Registered Indian Record (certified)
Temporary Confirmation of Registration document

Permanent residency

Valid Permanent Resident Card
Confirmation of Permanent Residence (IMM 5292, 5688)
Canadian Immigration Identification Card
Record of Landing (IMM 1000)

Rebates Claimed After Registering

If you did not claim the exemption at the time of registration and paid all of the MLTT owing, an application for the rebate can be submitted directly to the City of Toronto along with a copy of the following documents:

Municipal Land Transfer Tax Rebate/Exemption Application
Supplementary Information Form
MLTT Authorization of Representative Form
Registered conveyance (transfer/deed)
Docket summary (if transfer was registered electronically)
Agreement of Purchase and Sale (including all schedules, amendments and assignments)
Statement of Adjustments
proof of Canadian citizenship or permanent residency status in Canada
proof of occupancy for each first time home purchaser indicating the purchaser’s name and new address listed within 9 months of the date of registration, such as but not limited to:
- telephone/cable bills
- driver’s licence

Note: utility and property tax bills are not acceptable forms of proof of occupancy.

Submit documents by mail, fax or email:

City of Toronto
Revenue Services, MLTT
5100 Yonge St., Lower Level
Toronto, ON M2N 5V7
Fax: 416-696-3635 (refer to Tips on Faxing)
Email: torontomltt@toronto.ca

The rebate application with all supporting documents must be received within 18 months after the date of which the conveyance or disposition occurred. A fee to process the refund will be applied.

For Agreement(s) of Purchase and Sale which were executed on or before December 31, 2007 and the closing date is on or after February 1, 2008, check for eligibility under the Grandfathering Exemption.

Grandfather Exemption

The Grandfathering Exemption is applicable if the Agreement of Purchase and Sale was executed:

on or before December 31, 2007, and
the closing date is on or after February 1, 2008

Effective March 1, 2015, the grandfathering exemption cannot be claimed electronically using Teraview statement 10011. The MLTT must be paid in full upon registration and an application for rebate can be submitted directly to the City of Toronto along with a copy of the following documents:

Municipal Land Transfer Tax Rebate Exemption Application
MLTT Authorization of Representative Form
Registered conveyance (transfer/deed)
Docket summary (if transfer was registered electronically)
Agreement of Purchase and Sale (including all schedules, amendments and assignments) entered into before December 31, 2007
Statement of Adjustments

Source: https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rebate-opportunities/

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