First time purchasers of newly constructed homes 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; and
you must be entitled to a Tarion New Home Warranty Certificate.

Refunds must be made within 18 months of registration.
Expansion of Refund Program for First Time Homebuyers

As announced in the Ontario Economic Outlook and Fiscal Review 2007, the government proposes to expand the Land Transfer Tax Refund Program to include first-time homebuyers of resale homes.

This measure would be effective for agreements of purchase and sale entered into after December 13, 2007. As a result of this change, first-time homebuyers of resale homes would be able to receive a refund from the provincial government of up to $2,000 of the land transfer tax paid.

Refunds will be issued if the proposal becomes law. For details on how to apply, see Information Notice Details about the Proposed Expansion of the Land Transfer Tax First-Time Home Buyers Refund to Include Resale Homes.

For mor info please contact Margaret Kisza at: 416 543 9264 or mkisza@sympatico.ca