It’s a great time to be a first time home buyer in Canada right now! On November 14th the Ontario government announced it’s doubling the maximum Land transfer tax refund, so now it’ll be $4000. This will take effect on January 1, 2017 and will affect more than half of first time home buyers.
This is all done in an effort to help first time home buyers get into the inflated real estate market, especially in the greater Toronto area, without negatively affecting the rest of the market outside the area.
Currently the land transfer tax rates are based on the purchase price of the property. For example, anything under $50,000 is subjected to 0.5% rate, while anything over $400,000 is at 2%. The average price on a home in the Greater Toronto area is $762,975 so that equates to approximately $15,000, which can be a large sum of money to new home buyers. Now with the changes for first time home buyers, they won’t have to pay the Land Transfer tax on the $368, which comes as a big break for those struggling to get out of their parents home.
To apply for this rebate you must be at least 18 years old, and have never owned property anywhere in the world, or have had your name on the deed of a property. You have 18 months to send in your info, to get your refund, however your lawyer should take care.
Along with this LTT rebate the Ontario government has frozen the property tax on apartment buildings, whether the savings will be passed on to renters remain to be seen.
In 2017 opportunities for new homebuyers are at an all time high. There are 4 other programs created to help first time home buyers get into the market. There is the federal first time home buyers plan, government of Canada Economic Action Plan’s tax credit, the GST/PST rebates and the energy efficient rebates.
Contact a Toronto Mortgage Agent like myself for more information on these programs for first time home buyers.
