First Time homebuyer Land Transfer Tax Rebate

If you?re a first-time home buyer, there are more programs available for you to take advantage of

other

If you’re a first-time homebuyer (FTHB) in Ontario, British Columbia, or Prince Edward Island, you may be eligible to receive a land transfer tax (LTT) rebate.

The eligibility requirements and rebates differ by region.

British Columbia first-time homebuyer land transfer tax rebate

If you’re a first-time homebuyer in BC, you can take advantage of a tax exemption on your land transfer tax³, if:

• You’re a Canadian citizen or permanent resident.
• You’ve lived in BC for 12 consecutive months prior to the registration date, or you’ve filed two income tax returns in BC in the six years before registration.
• You’ve never owned a home before, anywhere in the world.
• You have not received a first-time homebuyer’s exemption or refund.
• The home is located in BC and is only used as your principal residence.
• The home has a fair market value of $475,000 or less if registered on or before February 21, 2017, or $500,000 or less if registered on or after February 22, 2017.
• The property is 0.5 hectares or smaller.

Vancouver, BC – February 22, 2017. On the heels of multiple government announcements in 2016 and early 2017, the British Columbia Real Estate Association (BCREA) welcomes the latest: an increase in the Property Transfer Tax exemption threshold for first-time buyers, announced in Budget 2017. The increase, to $500,000 from $475,000, takes effect today. 

BCREA appreciates this government’s attention to the needs of first-time homebuyers. To keep pace with the dynamic real estate market and ensure that homebuyers aren’t left behind, the Association strongly believes that this threshold—and all others related to the Property Transfer Tax—should be indexed, with adjustments made annually.

During Minister de Jong’s budget consultation in January, BCREA recommended that the first-time buyer exemption be increased to $750,000. That number would align with the exemption for newly-built homes and with the BC HOME Partnership program. This measure would have expanded consumer choices, because the First Time Home Buyers’ Program exemption applies to all homes, rather than only newly-built homes, which are often out of reach of first-time buyers.

BCREA also looks forward to learning more about the provincial government’s plans to partner with local governments to increase housing supply. Specifically, the Association supports incentives that result in faster housing and development approval processes, as well as increased density of family-oriented homes along transit corridors. 

Ontario first-time homebuyer land transfer tax rebate

If you’re buying your first home in Ontario, you may be eligible for a land transfer tax rebate equal to the full cost of your LTT¹, up to $4,000.

You are eligible if:

• You’re at least 18 years of age.
• You occupy the home as your principal residence within nine months of the closing date.
• You’ve never owned a home before, anywhere in the world.
• Your spouse has not owned a home while being your spouse.

You must apply for this refund within 18 months after the date of the transfer. Your lawyer typically applies for it on your behalf and it is an immediate rebate on closing day.

Toronto first-time homebuyer land transfer tax rebate

In Toronto, first-time homebuyers are able to receive a refund of their municipal land transfer tax², up to $4,475.

You are eligible if:

• You’re at least 18 years of age.
• You occupy the home as your principal residence within nine months of the closing date.
• You’ve never owned a home before, anywhere in the world.
• Your spouse has not owned a home while being your spouse.

You must apply for this refund within 18 months after the date of the transfer. Your lawyer can claim the rebate through when they register your transfer or deed on closing day.

PEI first-time homebuyer property transfer tax rebate

First-time homebuyers purchasing in PEI are exempt from paying land transfer tax⁴ if:

• You’re a Canadian citizen or permanent resident.
• You’ve lived in the province throughout a period of not less than six months immediately prior to the registration date, or have filed a tax return in at least two of the six taxation years immediately preceding the registration date or you’ve occupied the subject property as their principal residence for a period of six months following the registration of the deed.
• You’ve never owned a home before, anywhere in the world.
• You intend to use the property as your principal residence.

All purchasers of the property—if there is more than one—must be first-time homebuyers to receive the tax exemption.

Zoocasa © 2007–2019