Effective January 1, 2017, the maximum
amount of Land Transfer Tax (LTT) refund for first-time
homebuyers will double from the previous maximum $2,000
to $4,000. This increased limit will apply to conveyances
that occur on or after January 1, 2017, regardless of the
date of the agreement of purchase and sale.
Effective January 1, 2017, no LTT is payable by qualified
first-time homebuyers on the first $368,000 of the value
of consideration of eligible homes. For conveyances or dispositions
that occur before January 1, 2017, the maximum amount of
the refund is $2,000.
If the purchase price of an eligible home is greater than
$368,000, the first-time homebuyer can receive a maximum
refund of $4,000. It is estimated that more than half of
first-time homebuyers in Ontario will benefit and pay no
LTT.
Restrictions to the First-Time
Homebuyer’s Refund Program
Effective January 1, 2017, the government is also restricting
the eligibility of the first-time homebuyer’s refund
program to Canadian citizens and permanent residents only.
Purchasers who entered into agreements
of purchase and sale on or before November 14, 2016 would
remain eligible for the refund regardless of their citizenship
or residency status. Purchasers have 18 months following
the registration of conveyance to become eligible for the
refund program by obtaining Canadian citizenship or permanent
resident status.
The purchase or sale of a home
is one of the most important transactions most people deal
with. It is important to have the right team of professionals
involved from the beginning of your transaction to ensure
the correct guidance and advice is received. Should you
require any assistance with your real estate matters,
contact M. Bains Legal Professional Corporation
at; 289.681.0944 or www.bainslegal.ca
and we will be happy to serve you.
For further information
please contact:
M. Bains Legal Professional Corporation
Email: mandip@bainslegal.ca
Phone: 1-289-681-0944
Web site: www.bainslegal.ca
|
