At Last! Thirsty Toronto Home Buyers Get A Drink From Land Transfer Tax Rebate Tap

December 17th, 2007 Categories: First-Time Home Buyers, Home Buyers, News Wire, Taxation Nation

The Ontario government has just announced its intention to expand the Land Transfer Tax Refund Program for first-time home buyers to include purchases of resale housing. This tax rebate applies in all Ontario municipalities. The provincial rebate is in addition to the Toronto Land Transfer Tax rebate. See Avoid The Toronto Municipal Land Transfer Tax, Find Out How! Toronto Needs a Glass of Tax Rebate

This is a very welcome drink for parched Toronto first-time home buyers who, up to now, have been excluded from this rebate if they did not buy newly-constructed houses.

Toronto Asks
What’s On Tap?

Toronto first-time buyers will be eligible for a rebate from the provincial government of up to $2,000 based on total Provincial Land Transfer Tax to be paid. This measure will be effective for agreements of purchase and sale entered into after December 13, 2007.

I have asked for clarification from the Ministry of Finance and the Toronto Real Estate Board (TREB) with respect to the wording “entered into”. To confirm, this refers to the date an offer is accepted (either firm or conditional). Of course, buyers are always advised to speak with their lawyers about any questions or concerns they might have regarding their real estate purchase.

Rebate Not Automatic Until Law Passes

This change is being implemented by provincial legislation introduced on December 13, 2007 and must first become law before immediate refunds can be claimed through electronic or paper affidavits (as is done for newly-constructed houses).

In the meantime, buyers of resale houses must pay the Provincial Land Transfer Tax at the time of registration. Following registration, buyers can submit a Refund Affidavit to the Ministry of Revenue and they will be processed and refund cheques issued once legislation is passed. However, it is not known when this will take place.

So until the law is on your side, calculate the full cost of the Provincial Land Transfer Tax and have this money available for closing. Don’t be caught short and jeopardize closing your deal. Your cheque will be in the mail (someday).