Tax Rebate

On December 13, 2008, the McGuinty Government passed a new law regarding the Land Transfer Tax Rebate. Prior to December 13, only first time home buyers of new construction homes were eligible for the rebate of up to $2,000. Any agreements, whether new construction or resale, entered into December 14, 2008 or later, where all owners are first time home buyers, are eligible for the tax rebate.

Qualifying taxpayers may claim an immediate refund at the time of registration either electronically or by registering on paper at a Land Registry Office. Qualifying purchasers must submit their claim within 18 months of occupying the property.

The expanded Land Transfer Tax Refund Program for First-Time Homebuyers is part of new tax initiatives announced in the 2007 Fall Economic Outlook and Fiscal Review the would provide $1.4 Billion in provincial tax relief for business and people over three years. The government is making strategic investments in people, communities and infrastructure to strengthen Ontario’s economic advantage and help manufacturers and other sectors challenged by current economic conditions.

For further details please contact your legal advisor or visit 
http://www.rev.gov.on.ca/english/bulletins/ltt/1_2008.html