Buying your first home? Let’s talk about the Ontario land transfer tax rebate program
Author: Bernice McNutt // Category: Durham Region Real EstateAround the middle of December, 2008 it became a little easier for first time home buyers in Ontario to get into the homeownership market. Effective December 17, 2008, the Ontario government is giving all first-time home buyers a break on land transfer tax by expanding the Land Transfer Tax Refund Program to include purchases of resale homes.
Ontario Finance Minister Dwight Duncan announced that first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.
The expanded Land Transfer Tax Refund Program for First-time Home buyers is part of a package of new tax initiatives that are expected to provide $1.4 billion in provincial tax relief for business and people over three years.
“The government is making strategic investments in people, communities and infrastructure to strengthen Ontario’s economic advantage and help manufacturers and other sectors challenged by current economic conditions” said the press release issued yesterday.
If you are a first-time home buyer in Bowmanville, Courtice, Oshawa, Whitby, Port Perry or Uxbridge, call Bernice or Blair to guide you through the process.
Note, I’ve been getting inquiries requesting more details about this rebate so here are the practicalities:
- Enter into the Agreement of Purchase and Sale after December 13, 2007 (December 14th or later). The date that you entered into the Agreement of Purchase and Sale is considered to be the date at the top of page 1 of the Agreement, NOT the date that all the conditions were fulfilled.
- The rebate hasn’t passed through legislation yet, it’s just a proposal – Passing through legislation takes 1-6 months usually – However, an affidavit was released to allow purchasers to apply for the refund, so the likelihood of approval through legislation is pretty good.
- You are allowed up to 18 months from closing to apply for the refund.
- You have to pay the LTT on closing and then apply for the refund thereafter.
Tags: bowmanville real estate, land transfer tax, oshawa real estate, tax rebate, whitby real estate