Land Transfer Tax Rebate For First Time Home Buyers

Every time a piece of land exchanges hands in Ontario a land transfer tax is payable.

First time buyers may be able to collect a rebate on all of this amount or at least part of it, to a maximum of $2,000.00

You can claim the rebate at time of registration. You can ordinarily do this with your lawyers help. It may offset the land transfer tax payable completely, depending on your purchase price. If you don't claim at the time of registration, the rebate may be claimed directly from the Ministry of Revenue. Forget about interest!

To be eligible for a refund, you:

* have to be 18 years of age or older;
* the home must be your principle residence for at least 9 months after the date of transfer; and
* you cannot have previously owned a home, or have been part owner in a home, anywhere in the world.

Also:

* your husband/wife cannot have ever owned a home, or have been part owner in a home, anywhere in the world while being your spouse; and
* in the case of a newly constructed home, you must be entitled to a Tarion New Home Warranty.

How To Apply?

Qualifying taxpayers may claim an instant rebate at time of registration by either of 2 ways:

* If registering electronically, by completing the required statements under the "explanation" tab of the electronic affidavit.
* If registering by paper, by filing an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes.

How Long Can You Take To Apply After You've Purchased?

* You must make the application no later than 18 months after the date of the transfer.

If application was not made at registration and the tax was paid, qualified purchasers may apply for a refund by completing an Ontario Land

Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes.

By Tony Brayley

For full details on the refund program, please see Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds for First-Time Homebuyers or visit my website

Tony has been selling real estate in Brampton, Ontario & surrounding areas for almost 24 years. Has seen all the cycles and developed a system that works during boom times and recessionary times alike. Tony co-authored the book "We're About Families" with another book currently in progress. Visit Tony at his website for any questions or information http://www.century21.ca/tony.brayley

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