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Land Transfer Tax FAQs

Refund for First-time Home Buyers


I signed my agreement of purchase and sale on December 1, 2007 do I qualify for the Land Transfer Tax Refund for First-Time Homebuyers of resale homes?

The proposal that the Land Transfer Tax Refund Program for First-Time Homebuyers be expanded to include purchases of resale homes would be effective for agreements of purchase and sale entered into after December 13, 2007.

The proposed expansion of the refund to resale homes would not apply to situations where the agreement of purchase and sale was entered into, or the sale closed, on December 13, 2007 or earlier. This proposed measure has a specific proposed commencement and, regretfully, would not be retroactive. Please note that the date the agreement of purchase and sale was entered into is not a factor with newly constructed home refund applications.

Please refer to Information Notice Details about the Proposed Expansion of the Land Transfer Tax First-Time Home Buyers Refund to Include Resale Homes.

If you require additional assistance, please contact the Ministry of Revenue, Land and Resources Taxes section at 905 433-6361.

If a parent is also on title to a child's property at the insistence of the bank, is the child eligible for the refund as long as all of the other conditions are met?

In this situation, it will be necessary to pay land transfer tax at the time of registration and apply for a refund from the ministry.

If the parent did not acquire a beneficial interest in the property as a result of the conveyance:

  • the ministry will accept the fact that the parent was on title as a trustee for the child, and
  • the child would qualify for the newly constructed home refund, provided that evidence of the trust is submitted (e.g., a letter from the bank confirming that the parent is on title for mortgage purposes).

For further information refer to Ontario Tax Bulletin LTT 1-2005 – Conveyances Involving Trusts.

How do I apply for the refund of land transfer tax for a first time purchaser of a newly constructed home?

You have two options:

  1. Upon registration, by completing the appropriate tax statements in the Teraview electronic land registration system. The refund will be deducted automatically from the land transfer tax that would otherwise be payable.
  2. After registration, if the refund was not already claimed, by submitting an application to the ministry consisting of the following documentation:

For further information, including a copy of the affidavit refer to Ontario Tax Bulletin LTT 4-2003 – Refunds for First Time Purchasers of Newly Constructed Homes.

What are the requirements to qualify for the refund of land transfer tax for a first time purchaser of a newly constructed home?

The requirements are as follows:

  • The purchaser must be at least 18 years old.
  • The application for a refund must be made within 18 months after the date on which the conveyance or disposition occurred. (Note that an application for the refund can be completed upon the electronic registration of the conveyance).
  • The purchaser must occupy the home as his or her principle residence no later than 9 months after the date of the conveyance or disposition.
  • The purchaser cannot have owned a home or had an interest in a home anywhere in the world.
  • The spouse of the purchaser cannot have owned a home or had an interest in a home, anywhere in the world while he or she was the spouse of the purchaser.
  • The purchaser cannot have received an Ontario home ownership savings plan (OHOSP) based refund of land transfer tax.

For further information refer to Ontario Tax Bulletin LTT 4-2003 – Refunds for First Time Purchasers of Newly Constructed Homes.