In Ontario, when you purchase real estate, you must pay Land Transfer Tax to the province when the transaction closes. Land Transfer Tax is based on the purchase price of the property (Note: If you are purchasing a home in Toronto, an additional Toronto Land Transfer Tax applies). Land Transfer Tax may also be payable if you are buying out someone else’s interest in a Property.
To calculate your Land Transfer Tax, visit the following link: https://www.teraview.ca/en/pltt-calculator/.
While paying Land Transfer Tax is generally unavoidable, if you are a First-Time Homebuyer, you may be eligible for a full or partial refund of the Land Transfer Tax associated with your purchase. To qualify for the First-Time Homebuyer’s rebate, you must meet the following criteria:
- You must be at least 18 years old;
- You must be a Canadian citizen or permanent resident of Canada;
- You must occupy the home you are purchasing as your principal residence within nine (9) months of the closing date;
- You must not have ever owned another property anywhere in the world;
- If you are married, your spouse must not have ever owned another property anywhere in the world during your marriage; and
- If you are in a common law relationship, your spouse must not have owned another property anywhere in the world after living together for more than three (3) years.
For any questions related to Land Transfer Tax or your eligibility for the First-Time Homebuyer’s rebate or for assistance with your real estate transaction, please contact us.