The government of Ontario is reminding those looking to purchase their first home that the maximum Land Transfer Tax refund has been doubled to $4,000 for eligible first-time homebuyers as of as of January 1, 2017.
The First-Time Homebuyers Refund enhancement means that no Land Transfer Tax will be payable on the first $368,000 of the cost of a first home, and more than half of first-time eligible homebuyers across the province will pay no Land Transfer Tax.
Ontario is making changes to the Land Transfer Tax to reflect the current real estate market, including increasing rates on one or two single-family residences over $2 million. Based on the 2015 data, the rate increase impacts less than one per cent of home purchases in Ontario. Changing the Land Transfer Tax rates aims to help eligible first-time buyers enter the market by doubling the First-Time Homebuyers Refund.
Ontario also aims to protect renters by freezing the municipal property tax on apartment buildings while reviewing how the high property tax burden for these buildings affects rental market affordability.