Page 13 - Real Estate Now_Jan-Feb 2021

Land Transfer Tax Rebates

In Ontario, British Columbia and Prince Edward Island, first-time home buyers can receive a reduction on their land
transfer taxes. Land transfer taxes are paid when the transaction closes, and are based on the purchase price.

For Ontario buyers, rebates can be claimed from both the province and the City of Toronto, if applicable. Resale
and new construction properties in Toronto could offer a rebate valued up to $4,475, so long as the applicant is a
Canadian citizen or permanent resident of Canada, and the property will be lived in within nine months of purchase.
For homes priced more than $400,000, buyers can still claim the maximum rebate but will need to pay the remainder
of the land transfer tax.

Province-wide, Ontarians can receive a rebate of up to $4,000, covering the full tax amount for homes priced at
$368,333 and under. Similar to Toronto, homes priced more than $368,333 can still receive the entire rebate, but the
buyer will need to pay the balance of the tax.

In British Columbia, buyers can receive $8,000 in rebates, earning the full amount up to a $500,000 maximum purchase
price. Between $500,001 and $524,999, only a partial rebate is given, and there is no rebate for prices above $525,000.
Buyers in Prince Edward Island could receive up to $2,000, covering the full land transfer tax amount up to $200,000.
If purchased for more than $200,000, the property is not eligible for the rebate.

If you find rebates confusing, or are simply looking for advice on first-time home buyer incentives, a trusted REALTOR®,
financial expert or mortgage broker can point you in the right direction of what will best suit your needs. Experienced
with working with all types of buyers, both new and seasoned, they are there to walk you through every step of the
home buying process. g

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