Land transfer tax rebate
In Ontario, all property transactions require the buyer to pay Land Transfer Tax (LTT) to the Ontario Ministry of Finance. For properties located in the City of Toronto, buyers must also pay an additional municipal Land Transfer Tax to the Toronto Finance Department. However, if you qualify as a first-time homebuyer, you may be eligible for a partial refund of the LTT.
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Eligibility for the Refund (Who?)
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Age: Must be 18 years or older.
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Residency: Must be a Canadian citizen or permanent resident, or become a permanent resident within 18 months of the property closing date.
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Ownership: Must have never owned any property worldwide.
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Property Type: Must purchase a residential property (new builds and resale properties are both eligible).
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Occupancy: Must occupy the home as your principal residence within 9 months of closing.
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Marital Status: If purchasing after marriage, your spouse must also have no prior property ownership.
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Refund Amount (How much?)
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Ontario Land Transfer Tax: Maximum refund of $4,000.
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Toronto Municipal Land Transfer Tax: Maximum refund of $4,475.
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How to Claim the Refund
If you already meet the eligibility criteria at the time of purchase, your lawyer will typically file the refund application when completing the closing paperwork.
If you don’t meet the criteria at the time of purchase—for example, if you are not yet a permanent resident—you may still apply for the refund once you meet the requirements. For instance:
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If you become a permanent resident within 18 months of the closing date, we can assist you with filing the refund application.
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If you and your spouse purchase a property as first-time buyers while holding work permits, and only one spouse becomes a permanent resident within 18 months, you can still claim a 50% refund.
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At Sheng Qian Professional Corp., we have extensive experience handling Land Transfer Tax refund applications. If you have questions or need assistance, please feel free to contact us!