Ontario government announces expansion of Land Transfer Tax rebate

December 18, 2007

Last week, the Ontario Liberal government announced proposed legislation that would extend the land transfer tax rebate to first-time buyers who purchase resale homes. The rebate would apply to agreements of purchase and sale that were entered into after midnight on December 13, 2007. Until now, this rebate has only been offered to first-time buyers who purchased newly built homes.

One this proposed amendment becomes law, all first-time home buyers in Ontario will become eligible for a rebate of up to $2,000 of the land transfer tax they are required to pay to the province upon purchase of their home. Until the new law is passed and given Royal Assent, first-time homebuyers purchasing resale homes must continue to pay the land transfer tax upon registration. Once the new amendment is signed into law, a refund affidavit will be published that buyers may submit to receive their rebate.

Source: Ottawa Real Estate Board