Ontario is reminding those looking to purchase their first home that, as of January 1, the maximum Land Transfer Tax refund has been doubled to $4,000 for eligible first-time homebuyers.
The First-Time Homebuyers Refund enhancement means that no Land Transfer Tax will be payable on the first $368,000 of the cost of a first home, and more than half of first-time eligible homebuyers across the province will pay no Land Transfer Tax.
Ontario is taking further steps to address housing affordability by modernizing the Land Transfer Tax to reflect the current real estate market, including increasing rates on one or two single-family residences over $2 million. Based on the 2015 data, the rate increase impacts less than one per cent of home purchases in Ontario. Modernizing the Land Transfer
Tax rates allows the province to help eligible first-time buyers enter the market by doubling the First-Time Homebuyers Refund.
Ontario is also taking action to protect renters by freezing the municipal property tax on apartment buildings while reviewing how the high property tax burden for these buildings affects rental market affordability.
The average purchase price for a first-time homebuyer in Ontario in 2015 was $375,000.
Eligibility for the Land Transfer Tax refund for first-time homebuyers is restricted to Canadian citizens and permanent residents of Canada. First-time homebuyers who become Canadian citizens or permanent residents of Canada within 18 months of purchasing an eligible home can also apply for the refund.
The average municipal property tax burden on apartment buildings is more than double that for other residential properties such as condominiums.