Land Transfer Tax in Ontario- All you need to know

Whenever a property is bought or sold in Ontario (or anywhere in Canada), the buyer has to pay a land transfer tax. When you are buying real estate in Ontario, you must be prepared for the extra closing expenses along with the down payment. The name ‘land transfer tax’ might mislead many but in reality; it is more like a property transfer tax.

As a home buyer, you must know that the homebuyer pays the land transfer tax on the closing date of the property. No seller will ever have to pay a land transfer tax. To calculate the land transfer rate you will have to pay, you can use an online land transfer tax calculator by filling the purchase price and your location in the blanks.

Who can get a Rebate on the Land Transfer Tax in Ontario?

Home buyers can save up to $8,475 with the help of the land transfer tax rebate. The eligible first-time homebuyers can receive a maximum refund amount of up to $4,000 on their Provincial Land Transfer Tax and $4,475 on their Municipal Land Transfer Tax.

To be able to get the rebate, here are the eligibility criteria.

·         You must be at least 18 years of age.

·         You have to be a permanent resident of Canada.

·         You must be ready to occupy the home within 9 months of purchase.

·         You must not own home locally or elsewhere in the world. 

To make it easy to see, RateShop.ca has got an easy-to-use land transfer tax calculator that will help you in finding how much land transfer tax you will have to pay. You must click the box that says, “I am a first-time home buyer”, to get the exact land transfer tax.