First-time home buyers in Ontario may now claim a higher Land Transfer Tax refund.
The Ontario Ministry of Finance is reminding first-time home buyers that the maximum Land Transfer Tax refund has been doubled as of January 1, and that they may now claim up to $4,000.
Legislative changes introduced last year mean that no Land Transfer Tax is payable on the first $368,000 of the cost of a first home in Ontario. The government says more than half of the first-time eligible homebuyers in the province will now be able to avoid paying any Land Transfer Tax.
Ontario will make up for some of this forgone revenue by increasing tax rates on properties with one or two single-family residences that sell for more than $2 million; the Ministry of Finance says that, based on data from 2015, this higher rate will apply to fewer than 1% of home purchases in the province.
“We are supporting an affordable and stable housing market while balancing the concerns of homeowners, first-time homebuyers and renters," says Minister of Finance Charles Sousa. "The housing market is an important source of economic growth and employment in Ontario, and we are taking action to help more young people enter today’s real estate market and purchase their first condo or house.”