Buying a new home is difficult and we’re sure you have a ton of questions if you’re buying for the first time.
Mister Real Estate Lawyer LLP is available at anytime to assist or help answer any questions you might have at no extra cost.
Below are links to several often asked first time home buyer questions. However, Mister Real Estate Lawyer is happy to offer a FREE consultation for any questions you may. Please call us at 647 – 9LAWYER (647-952-9937)
First Time Home Buyers Tax Credit
The Ontario Land Transfer Tax Credit (OLTC) is the most frequently asked question by first time home buyers (and non-first time home buyers). The OLTC is the amount of tax payable by the Buyer on the transfer of the property from the Seller. If you are buying a home or condo in the City of Toronto, there is a separate Toronto Land Transfer Tax and there is a Toronto Credit (LLTC) also.
A first time home buyer can receive a Tax Refund of the amount of Tax Payable to a maxium of:
1) $2,000.00 in Ontario; and
2) $3,750.00 in Toronto
Example 1: Purchase Price of Home = $100,000; OLTC payable = $725 and LLTC payable = $725; Therefore the total land transfer tax refund in Ontario would be $725 and $725 in Toronto.
Example 2: Purchase Price of Home = $500,000; OLTC payable = $6,475 and LLTC payable = $5,725; Therefore the total land transfer tax refund in Ontario would be $2,000 and $3,750 in Toronto.
You can not get a rebate for Land Transfer Tax that is not payable (see Example 1).
SOURCE: Ontario Ministry of Finance, City of Toronto websites.