Land Transfer Tax (LTT) Rebate Program

When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax:

• For agreements of purchase and sale entered before December 14, 2007, the refund only applies on the purchase of a newly constructed home.
• For agreements of purchase and sale entered after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.

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.

Requirements to qualify for the refund

To qualify for a refund:

• The purchaser must be at least 18 years old.
• The purchaser must occupy the home as their principal residence within nine months of the date of transfer.
• The purchaser cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at any time.
• If the purchaser entered into an agreement of purchase and sale before December 14, 2007, the home must be a newly constructed home and the purchaser must be eligible for the Tarion New Home Warranty.

Time limit to apply for refund

A qualifying purchaser must apply for the refund within 18 months after the date of registration of the conveyance or the date the unregistered disposition occurs.

Tax Rates:

• amounts up to and including $55,000: 0.5%
• amounts exceeding $55,000, up to and including $250,000: 1.0%
• amounts exceeding $250,000: 1.5%
• amounts exceeding $400,000, where the land contains one or two single family residences: 2.0%

For more information call the Ontario Finance Ministry at 1-800-263-7965.

CALL GREG

905-924-1512