A new announcement by Canada's Finance Minister confirms the government's intention to help new buyers get the home of their dreams. Beginning January 1, 2017 all first-time buyers will be receiving a $ 4,000 Land Transfer Tax (LTT) refund.   It means that the first buyers residing in Ontario will not pay land transfer taxes on the first $ 368,000 of the cost of their homes. Because there are many options in that price range across much of the province, the Minister said that for many this will mean that there will be no land transfer tax on the purchase of your first home.   What is the Land Transfer Tax? When you acquire a property in Ontario, you have to pay a tax. It is considered an acquisition cost. This payment is made on the closing date of the transaction and is calculated according to the following table:

Percentage of calculation in the province of Ontario:

up to $55,000

0.5%

up to $250,000

1% less $275

up to $400,000

1.5% less $1,525

Residential property > $400,000

2% less $3,525

Commercial property > $400,000

1.5% less $1,525

  You can calculate when it would be the amount of the payment of this tax using our calculator   You are eligible for this refund:  

• Buyers over 18 years old
• Buyer must occupy the property within 9 months of purchase
• Not having acquired any other property in the world
• Wives who have not bought a property during marriage

  This new government initiative translates into lower closing costs for first-time buyers. It is definitely a plus if you are thinking of buying your first home.   Do not hesitate to contact us if you would like more information!