Land Transfer Tax

In most provinces and some municipalities (Toronto), you have to pay a land transfer tax. This tax varies between provinces.

In Ontario, the rates are as follows:

For example, if you purchased a home for $100,000 in Ontario, you would pay $725 (1/2 % on $55,000 plus 1% on $45,000). Your lawyer or realtor can provide you with the provincial figure and help calculate your fee.

Ontario 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.

In Toronto, the additional land transfer tax is as follows

Toronto Rebate Program for First Time Home Buyers

If you are a first-time purchaser of a newly constructed or re-sale residential property, the rebate for first-time home purchasers is up to a maximum of $3,725.00.