A Defining Moment for Toronto’s First-Time Home Buyers
December 21st, 2007 Categories: First-Time Home Buyers, Home Buyers, News Wire, Taxation Nation
Much information has been posted the last couple of weeks concerning both the Toronto Land Transfer Tax and Provincial Land Transfer Tax rebates for first-time home buyers.
The one missing piece was the “official” definition of a first-time home buyer for purposes of the Toronto Land Transfer Tax rebate. At last, I have this definition, and it applies for both the Toronto and provincial land transfer tax rebates.
Do You Qualify As First-Time Home Buyer?
The Toronto Real Estate Board (TREB) advises the following with respect to eligibility. And it’s verbatim as I have not yet been able to find a link to this information on the TREB public web site.
“According to the City of Toronto, eligibility rules for the Toronto Land Transfer Tax first-time buyer rebate will mirror provincial rules, as follows:
- The purchaser must be at least 18 years of age.
- The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
- The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
- If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse. If this is the case, NO refund is available to either spouse. Note: If a purchaser’s spouse owned an interest in a home BEFORE becoming the purchaser’s spouse, but not while the purchaser’s spouse, the purchaser may be eligible for some rebate.”
Toronto Home Buyers Exercise Caution
I can advise you of the rebates you qualify for based on purchase price and first-time home buyer eligibility. However, if you do not qualify both land transfer taxes will be payable at the time of registration.
Although most of the eligibility rules are straightforward (you’re either 18 years old or you’re not!), you may want to consult with your lawyer, especially with respect to the spousal ownership rules if your situation so warrants.
Don’t jeopardize your closing! If you require the land transfer tax rebates in order to have sufficient funds to close, make sure you know with certainty as to whether you qualify before signing that offer.
[…] Torontonians also talk about taxes. A lot. And with good reason. On a positive note, Toronto home owners pay the lowest residential property taxes in the Greater Toronto Area (GTA) and we get quite a bang for our buck. However, our lower tax rate causes upset in other areas, and plays into that whole Toronto as Centre of the Universe thing. On the downside, there is a newly-introduced Toronto municipal land transfer tax that has caused controversy. Toronto real estate agents lobbied aggressively against this tax, and we were able to get a break for first-time home buyers. If you are thinking of buying a house in Toronto and would like more information on these taxing matters, click here, here and here. […]