Tax Relief For First-Time Home Buyers
As a first-time home buyer, what would you do with an extra $4,000? As of January 1, 2017, that’s how much the provincial land transfer tax rebate will give back to Ontario’s first-time home buyers.
“That extra money could go a long way toward beefing up your down payment, covering closing costs or purchasing appliances for your new home,” advises Ray Ferris, president of the Ontario Real Estate Association. “The government of Ontario deserves credit for helping more young families achieve their dreams of home ownership.”
The tax is calculated as a percentage of the property’s purchase price and is paid at closing. If your first home costs less than $368,000, the new rebate exempts you from paying this tax altogether. The rebate was previously $2,000.
“What a great way to kick-off the new year for first-time home buyers,” says Ferris. “This tax break will give them the leg up they need to get into the market.”
If you’re in the process of purchasing your first home, be sure to ask your Realtor about the provincial land transfer tax rebate and other government programs available to assist first-time buyers.
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Attention editors: This article is for distribution in Ontario only.