What is Land Transfer Tax? Take Advantage of First-Time Homebuyers Program

In general, if you buy land or an interest in land in Ontario, you must pay Ontario's land transfer tax, whether or not the transfer is registered at one of Ontario's land registry office.

Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).

Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.

Refund Program for First-Time Homebuyers

First-time homebuyers may be entitled to a refund of Ontario's land transfer tax, up to a maximum of $2,000. This refund is usually claimed at the time of registration. If not, the refund may be claimed directly from the Ministry of Revenue.

To claim a refund, you

must be at least 18 years old;

must occupy the home as your principle residence within 9 months after the date of transfer; and

cannot have previously owned a home, or an interest in a home, anywhere in the world

In addition,

your spouse can not have owned a home, or an interest in a home, anywhere in the world while being your spouse.

If not claimed at the time of registration, refunds must be requested within 18 months of registration.

For Toronto Municipal Land Transfer Tax Rebate.

the Rebate is up to $3,725 if elegible.