The First-Time Home Buyers’ Provincial Land Transfer Tax Rebate. How much of a refund will I get?

Wow!  Here is yet another government program to help with first-time home buyer closing costs.  THE FIRST-TIME HOME BUYERS’ PROVINCIAL LAND TRANSFER TAX REBATE. Qualifying first-time home buyers may be eligible for a rebate of their Provincial Land Transfer Taxes, when they purchase a qualifying home.  The maximum rebate amount allowed is $2,000.

All transfers of land in Ontario, Canada, are subject to the Provincial Land Transfer Tax.*  In general, when you buy land (or an interest in land) you must pay the PLTT.  The PLTT is paid by the purchaser(s) at the time that the transfer is registered.  To qualify for the rebate, you and your spouse must be at least 18 years of age, have never owned or owned an interest in a home (anywhere in the world), and you must occupy this home as your principal residence within 9 months of the date of the transfer.  As of December 13, 2007 this rebate now applies to both resale and new home purchases. (New homes must qualify for and be registered in the Tarion New Home Warranty program.)

If all purchasers do not qualify under the program, then the rebate amount rewarded will be reduced accordingly.  The rebate amount will then be calculated proportionate to “the percentage of ownership” of the remaining qualifying buyer(s).

Example:
a) Sue and Bob purchased a home together for $200,000 – with a potential PLTT of $1,725 due at closing.  Sue qualifies under the program, but her husband Bob does not.  Sue may claim 50% of the $2,000 maximum allowed.  Sue qualifies for a maximum PLTT rebate of $1,000.  Their Provincial Land Transfer Taxes payable at closing will now be reduced to only $725. ($1,725 – $1,000 = $725)

b) If both Sue and Bob had qualified under the program, then they would have received a PLTT rebate of $1,725.  The government would have paid their PLTT for them!

So now you know how to have all, or a part of your Provincial Land Transfer Taxes paid for by the government!  Neat!  The government will help you buy your “very first home”.  

 *In Toronto, there is a second “Municipal” Land Transfer Tax in addition to the PLTT.

Next post: The Canadian Mortgage and Housing Corporation (CMHC) Programs.  What are the available CMHC programs, and how will they help me buy my first home?

For more information:
The First-Time Home Buyers’ Provincial Land Transfer Tax Rebate: http://www.rev.gov.on.ca/
(Direct link active as of May 20, 2009
First-Time Home Buyers’ Provincial Land Transfer Tax Rebate

The Ontario New Home Warranty:
www.tarion.com

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Welcome to my new blog about all things real estate.  Boy do I like to talk about real estate!   You could say that I am kind of passionate about real estate, and about helping  people get the real estate information that they need.  Check back often to see my newest posts.  Have a real estate related question that you do not see addressed?  Let me know, and I will do my best to get you the answers that you need.  See the bottom of each post for tomorrow’s post topic.