FIRST TIME HOME BUYER
Alex knows that buying a property is the most important purchase you can make. It’s not just an investment—it’s your home. His aggressive negotiating style, attention to detail and protectiveness of your best interests ensures you’ll get the home you want, with the best terms and for the lowest price.
Introduction
When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax.
To claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home, anywhere in the world while he or she was your spouse. Previous ownership in a home means you do not qualify for the land transfer tax first-time homebuyers refund. The method of acquiring the home (e.g., purchase, gift or through an inheritance) is not relevant.
How do you qualify for the First-time Home Buyers' Tax Credit?
In order to be eligible for the First-time Home Buyers' Tax Credit, your home must meet the following requirements:
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Be within Canada
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Be an existing or new home
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Be a single, semi, townhouse, mobile home, condo, or apartment
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Can include a share in a co-operative housing corporation that gives you possession of the home
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You must intend to occupy the home within one year of purchase
In order to be eligible for the First-time Home Buyers' Tax Credit, your home must meet the following requirements:
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You or your spouse must purchase a qualifying home
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The home must be registered in either your name or your spouse's name
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You cannot have owned a home in the previous four years
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You cannot have lived in a home owned by your spouse in the previous four years
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You must present documents supporting the purchase of the home
Land Transfer Tax Rebate for First Time Homebuyers
Another tax credit available to first time homebuyers in Ontario, British Columbia, and Prince Edward Island is the land transfer tax rebate. Each province has its own rules about who is eligible to claim the land transfer tax rebate. The amount of the rebate depends on which province you live in, the value of the home, and whether one or both buyers has owned a home before.
First-time homebuyers in the City of Toronto can also get a rebate of up to $3,725 on the municipal land transfer tax as long as they meet the necessary criteria. This rebate is applicable whether you're buying a Toronto townhouse, condo or house.
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