Are you a first time home buyer in Ontario? Then you’re in luck! The provincial government offers a first time home buyer incentive Ontario, giving you up to $4,000 in land transfer tax rebate when you purchase a home for less than $368,000. This is an excellent opportunity to get the most out of your first time home buyer experience in Ontario. Let’s see how you can take advantage of the Ontario first time home buyer incentive.
Who is Eligible?
If you are looking to purchase your first home in Ontario, you may be eligible for a land transfer tax rebate of up to $4,000 through the Ontario First-Time Home Buyer Incentive. To qualify, you must be a first-time home buyer, meaning you have never owned a home, or have an interest in a home, anywhere in the world. This includes those who have previously owned a home but are now re-entering the housing market as first-time buyers. You must also be 18 years of age or older and live in the property as your principal residence for a minimum of nine months of the year. You must also be an eligible Canadian citizen or permanent resident and have a total household income of $120,000 or less.
What Properties Qualify?
For those looking to take advantage of the first time home buyer incentive Ontario, it’s important to understand what properties qualify. To be eligible for the incentive, you must be purchasing a home that is located in Ontario and costs less than $368,000. Additionally, the property must be used as your primary residence and cannot be used as an investment property. The purchase must also close on or after January 1st, 2021 in order to be eligible for the first-time home buyer incentive Ontario. If you’re looking to purchase a home for more than $368,000, you may still be eligible for a partial rebate on the land transfer tax, but it will not be the full $4,000. It’s important to note that any existing homes or newly constructed homes are both eligible for the first time home buyer Ontario incentive.
How Much is the Rebate?
If you’re a first-time homebuyer in Ontario, you may be eligible for a land transfer tax rebate of up to $4,000! To qualify for this incentive, you must be purchasing a house or condo with a purchase price of less than $368,000. If your purchase price is equal to or more than $368,000, you will still receive the maximum rebate of $4,000.
For instance, if your purchase price is between $368,000 and $400,000, you would still receive the full $4,000 first time home buyer incentive Ontario. If your purchase price is above $400,000, then the rebate amount reduces incrementally for every additional dollar over $400,000.
This first-time home buyer incentive Ontario applies to all types of residential properties including newly built homes and condos. This incentive has been extended until December 31st, 2021, and is an excellent opportunity for first-time homebuyers in Ontario to save some money on their purchase.
Calculation of land transfer tax (without any rebate) for a property in Ontario worth $500,000.
Tax Bracket
Marginal Tax Rate
Marginal Purchase Price
Marginal Tax
First $55,000
0.5%
× $
55,000
= $
275
$55,000 to $250,000
1.0%
× $
195,000
= $
1,950
$250,000 to $400,000
1.5%
× $
150,000
= $
2,250
$400,000 to $2,000,000
2.0%
× $
100,000
= $
2,000
Over $2,000,000
2.5%
× $
0
= $
0
Total Tax
= $
6,475
How to Apply
If you’re a first-time home buyer looking to take advantage of the first-time home buyer incentive Ontario, you’ll need to complete an application to receive your rebate. To be eligible, you must be a Canadian citizen or permanent resident and have a valid Social Insurance Number (SIN).
When you’re ready to apply, you’ll need to fill out the Application for Rebate of Land Transfer Tax form. You’ll also need to provide supporting documentation such as your purchase agreement, a deed of sale, a lawyer’s statement, and other documents. Be sure to double-check that all of the information provided is accurate and complete.
The form should be sent to the Land Registration Office at the same time as the transfer documents. It’s important to note that the application must be received within 18 months after the registration date of the transfer.
Once your application is received and approved, the Land Registration Office will process your rebate and send it to you by mail. The Ontario first-time home buyer incentive can help to reduce the costs of purchasing a home in the province, so be sure to take advantage of this opportunity if you’re eligible!
Tips for Maximizing Your Rebate
As a first-time home buyer in Ontario, you have access to a great incentive that can help make your purchase more affordable: the land transfer tax rebate. The land transfer tax rebate is up to $4,000, but you need to know how to get the most out of it. Here are some tips for maximizing your Ontario first-time home buyer incentive.
Know the Property Price Cap
Make Sure You’re Eligible
You must meet certain criteria to be eligible for the first time home buyer Ontario incentive. This includes being an Ontario resident and a Canadian citizen or permanent resident. You must also be 18 years of age or older and not have previously owned a home.
Start the Application Process Early
You should start the application process as soon as possible. It can take several weeks to complete and submit the necessary paperwork, so you’ll want to give yourself plenty of time.
Get Organized
Double Check Your Numbers
Seek Professional Help
Consider getting professional advice from a financial advisor or accountant to ensure that you’re taking advantage of all available incentives and deductions.
Following these tips can help you maximize your Ontario first time home buyer incentive and ensure that you get the most out of your purchase. For more information about the first time home buyer incentive Ontario, contact us today.
Contact Us
Are you a first-time home buyer looking to take advantage of the first time home buyer Ontario incentive? At Wefin, we are here to help you get the most out of the Ontario first time home buyer incentive. We provide expert advice and assistance in navigating the incentive, helping you to make informed decisions and maximize your rebate.
For more information on the First Time Home Buyer Incentive Ontario, contact us today. We can answer any questions you have and provide you with all the information you need to make the most of this fantastic incentive.
