First-Time Home Buyer? This is News For You!
17 Nov 2016
First Time Home Buyers
The process of buying a home in Canada has seen a whirlwind of changes over the past few weeks but this next one will surely help to put a smile on the face of first-time home buyers!
Effective January 1st, 2017 first-time home buyers will receive a $2,000 increase in land transfer tax rebate, providing a rebate total of $4,000!
What is land transfer tax? When any land or an interest in land is purchased in Ontario, it is subject to Ontario’s land transfer tax. It is payable to the province when the transaction closes and is based on the amount paid for the property (in case of new home purchases, the Net HST paid is reduced from the purchase price). The tax rates are calculated as follows:
- Up to and including $55,000 is 0.5%
- Above $55,000 up to and including $250,000 is 1.0%
- Above $250,000 is 1.5%
- Above $400,000 is 2.0%
While this increase will not change how much buyers can pay or their ability to afford a home, it will provide a nice incentive and tax break on closing as well as represents a real direct savings for first-time home buyers. In most cases, this increase will leave first-time home buyers paying nothing for land transfer tax.
This is great news for first time home buyers! 2017 will be a great year to find that dream house and we are here to help you through every step of the way. Contact us today and be connected with one our top agents.