Effective January 1, 2017 First Time Home
Buyers in Ontario, Canada to get a rebate of up to $4000.00
The Province of Ontario in Canada has proposed to double
the maximum refund better known as rebate for first-time
homebuyers from $2,000 to $4,000, effective January
The eligibility of the first-time homebuyers will be
restricted to Canadian citizens and permanent residents.
This would mean that First time home buyer in Ontario
in Canada will be exempted from the land transfer tax
on the first $368,000 they spend towards the purchase
of their new home. In other words for example if you
are a first time home buyer in Mississauga, Brampton,
Oakville, Milton, Toronto or anywhere within the province
of Ontario in Canada and the house you are buying is
priced at $400,000.00 – you will not pay any Land
Transfer Tax on the first $368,000 and will pay tax only
on the remaining $32,000 that will be only $475.00 .
While if your closing date is prior to December 31,
2016 it will be $ 2,475.00 . This is just an example.
In order to bridge the gap, the land transfer rates
on houses that cost more than $2 million will be increased.
For every penny above $2M, the rate will increase from
2 per cent to 2.5 per cent. Still the tax on the part
of the purchase price between $400,000 and $2 million
will remain at 2 per cent.
If you have any further query on this or if you are
thinking of buying your first home in Ontario, Canada
in Mississauga, Brampton, Oakville, Milton, Toronto,
please feel free to contact us by filling out this Dream
Home search form.