Archie Ali
  Re/Max Realty Specialists Inc., Brokerage
Independently Owned and Operated
   
 
arali@trebnet.com
416-816-4346
 
 
 
 
 
 
FIRST TIME BUYERS
 
Land Transfer Tax Refund

Land Transfer Tax applies to all transfers of land in Ontario.

First-time homebuyers may be eligible for a refund of all or part of the tax.

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

Applications for a refund must be made within 18 months after the date of the transfer.

How much is the refund?

The maximum amount of the refund is $2,000. 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 Revenue. No interest is paid on this refund.

Who qualifies?

To claim a refund, you:

  • must be at least 18 years of age;
  • must occupy the home as your principal residence within 9 months of after the date of transfer; and
  • cannot have owned a home, or an interest in a home, anywhere in the world.

In addition:

  • your spouse cannot have owned a home, or an interest 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 do I apply?

Qualifying taxpayers may claim an immediate refund at time of registration in one of two ways:

Refunds claimed at the Ministry of Revenue

Where a qualifying taxpayer is unable to claim the refund at registration, the tax will be payable at that time and a refund claim may be made directly to the Ministry of Revenue. The following documentation must be submitted in order for a refund claim to be processed:

  • A properly completed form – Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes;
  • A copy of the registered conveyance (transfer/deed). If not registered electronically, this should be a photocopy of the Land Registry Office's original which shows the tax paid;
  • A copy of the docket summary will also be required if the conveyance was registered electronically;
  • A copy of the agreement of purchase and sale, together with all schedules, amendments and assignments along with a copy of the statement of adjustments relating to the conveyance;
  • Proof of occupancy, with the new address listed, such as copies of telephone/cable bills, credit card statements, driver's licence, newspaper/magazine subscriptions, etc., and
  • 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.

 

 
 


  © ARSHAD ARCHIE ALI of Re/Max Realty Specialists Inc., Brokerage
Independently Owned and Operated
 
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