Program
First-time homebuyers who purchase a newly constructed home will receive a rebate of the Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum LTT rebate is $2,000.
Details
The 1996 Ontario Budget announced a special one-year provision to the LTT that was renewed every year and is now a permanent program. First-time buyers who purchase a newly constructed home will receive a rebate of the LTT. All other buyers will continue to pay the full applicable tax. The maximum rebate is $2000. If an individual owns less than 100% interest in the newly built home, the amount of the rebate would be reduced and calculated according to the amount of interest in the home. A rebate of $2,000 is equivalent to the LTT payable on a purchase price of $227,500 (net of GST). Only individuals who are at least 18 years of age have not previously owned an interest in a home anywhere qualify for the rebate. Also applies to their spouse. Individuals who have received an Ontario Home Ownership Savings Plan (OHOSP) based refund of the LTT do not qualify. A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another. The tax is a percentage of the value of the property based on a graduated scale: 0.5% on amounts up to and including $55,000 +1.0% on the amount exceeding $55,000 up to and including $250,000 +1.5% on amounts above $250,000 up to and including $400,000 for residential /     +1.5% on the amount in excess of $250,000 for business properties +2.0% of the amount in excess of $400,000 [residential only]
For more information call the Ontario Finance Ministry at 1-800-263-7965.