Would you like more money in your pocket? First time home buyers can find far better things than taxes to spend their hard-earned money on. Expenses bombard them at every turn. Drapes, appliances, home inspection fees, – an endless queue of people waiting with open hands.
As of January 1, 2017 the new Ontario First Homeowner’s Grant has amped up the help that first home buyers in Ontario get to pay their expenses.
Maybe you’ve already heard the good news. The new Ontario Land Transfer Tax Rebate has doubled from $2000 to $4000. If you are a qualified tax payer you may claim your rebate of up to $4000 immediately after you register your land transfer.
While this is music to the ears of Ontario REALTORS who lobbied hard for this change, not all first-time buyers qualify for the grant. Keep in mind, too, that qualifying doesn’t guarantee that applies to the full rebate. Read on for criteria of how to qualify for the new Ontario Land Transfer Tax Rebate.
- You must be at least 18 years old to qualify. That means adult children can register with a parent.
- Currently Canadian citizenship or permanent residency is required.
- If you were not born in Canada you can qualify if:
- you receive citizenship or permanent residency within 18 months of registering your land transfer.
- Homes purchased before December 14, 2007 must have been newly constructed and protected by the Tarion New Home Warranty (formerly Ontario New Home Warranty).
- If you didn’t register the land transfer on or after January 1, 2017:
the former rate of $2000.00 applies.
First Home Price
- Homes costing $368,000 or less will not be subject to provincial sales tax.
- Homes over $368,000 but under $2,000,000.00 will incur taxes at 0.5% more than last year.
- Homes $2,000,000 and up will incur a 2.5 per cent tax rate.
- Your new home must be your principal residence within 9 months of transfer.
- You must never have owned shares in property anywhere in the world, whether by purchase, inheritance, or gift.
- Your domestic partner may qualify for the grant. It depends on previous property ownership and dates of marriage.
For Toronto buyers, the city has confirmed, as of January 25, 2017, that it will not increase the land transfer tax for now.
For more detailed information on the new Ontario Land Transfer Tax Rebate, including a video and calculator to figure out how much tax relief you can claim, go here www.FirstHomeRebate.ca