13 Oct Qualifying for a Land Transfer Tax Refund?
To be eligible to claim a refund on land transfer tax owing, a purchaser must be at least 18 years old and must occupy the home as their principal residence within 9 months after the date of the transfer. Also, the purchaser must be a first time home buyer who has never owned an interest in a home anywhere in the world. If one of the purchasers is eligible and the other is not, a partial refund may be claimed. However, you are not entitled to the refund if your spouse has owned a home (or an interest in a home). Additionally, if your home is a newly constructed home, it must include a Tarion New Home Warranty in order to qualify.
The maximum refund available is $2,000 for the Ontario portion of the tax (an additional refund is available for the Toronto Land Transfer Tax, if applicable). Your lawyer can determine your eligibility prior to your closing date and if you qualify, the refund can be issued automatically to reduce your tax payable (so that you don’t have to wait for a refund to be issued by the government).
The above is only a brief and general overview of the Land Transfer Tax Refund program and may not apply specifically to your circumstances. I’d be happy to speak with you to discuss your particular situation and to determine your eligibility.