Land Transfer Taxes & Tax Refunds (Toronto and Ontario)

Land Transfer Tax Refund for First-time Homebuyers


Land Transfer Tax applies to all transfers of land in Ontario.

First-time homebuyers may be eligible for a refund of all or part of the tax. For transfers where: the agreement of purchase and sale was entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.

Applications for a refund must be made within 18 months after the date of the transfer.

The maximum amount of the refund is $2,000. The refund can be requested at the sale or directly from the Ministry of Finance. No interest is paid on this refund.
(For Toronto, the maximum refund is $3,725.00)

To claim a refund, you:

• must be at least 18 years of age;
• must occupy the home as your principal residence within 9 months of the date of transfer; and
• You and your spouse cannot have ever owned a home, or an interest in a home, anywhere in the world.

Ontario Land Transfer /Toronto (in bold) Formula

0.5% of the value of consideration for the transfer up to and including $55,000
1% of the value of the consideration which exceeds $55,000 up to and including $250,000 (to 400,000.00 for Toronto)
1.5% of the value of the consideration which exceeds $250,000* Only Ontario
2% of the amount by which the value of the consideration exceeds $400,000 (Toronto)

Example: House for $600,000 in Toronto would have the following transfer taxes

Toronto $7,725.00
Ontario $8,475.00
Total $16,200.00

Note: this is not intended as legal advice, please contact a lawyer for assistance with your residential purchase.

Some Closing Costs to consider for the new purchaser

First Time Home Buyer Purchasing a Resale Home or Condominium

Typical Costs

1. Title Insurance
2. Assignment Fees
3. Ontario/Toronto Land Transfer Taxes
4. Property Taxes
5. Education and Park Levies
6. Utility Hook Up Fees
7. Mortgage Application Fees
8. Property Insurance
9. Inspection
10. Survey
11. Title Insurance
12. Canadian Mortgage and Housing Corporation (CMHC) Mortgage Insurance
(if less than 20% downpayment)
13. Registration of Title
14. Execution Name Searches
15. Registration of Mortgage
16. Costs to Municipality and Utility to find out about outstanding bills
15. Real Estate Commissions
16. Legal Fees
17. Change of mail
18. Utility Hook-Up charges (gas, hydro, phone, cable)

Note: this is not intended as legal advice, please contact a lawyer for assistance with your residential purchase.

Why the Condominum Act needs some changes?

MPP, Rosario Marchese, of the Trinity Spadina riding, hopes that his attempt to pass a private member bill for the fourth time, is the charm.

He seeks to protect condo owners from developers that leave gaping holes in the city and empty pockets of those who left sizeable deposits.

He also plans to have more owner input in the day to day running of the condo. He also wants to see more qualified persons heading Tarion’s warranty issues

He also suggests a Condominium Review Board where owners/tenants can obtain faster relief than from the courts as well as a way of tracking unethical developers

Toronto has a lot of condos, a lot are in Mr. Marchese’s riding. It would be a good thing if condo owners have more protections under the Act.

The article is posted below.