When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may qualify for a refund of all or part of the tax. The maximum amount allowed is $4,000.00.
Requirements for the refund are as follows:
- The purchaser must be at least 18 years old.
- The purchaser must occupy the home as their principle residence within nine months of the date of transfer.
- The purchaser cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at any time.
- If the purchaser has a spouse, the spouse cannot have owned an eligible home, or had any ownership interest in an eligible home, anywhere in the world, while he or she was the purchaser’s spouse. If this is the case, NO refund is available to either spouse.
- The purchaser cannot have previously received an Ontario Home Ownership Savings Plan (OHOSP) ‑ based refund of land transfer tax.
- Beginning January 1, 2017, eligibility for the first‑time homebuyers refund program is restricted to Canadian citizens and permanent residents of Canada.