It's a known fact that the average Ontarion works half way through the year before earning a single dime for their
own pocket. Prior to July most earnings fall prey to the ravenous tax monster.If you're thinking of buying your first home, you can now give a small sigh of relief. The McGuinty government has just introduced a tax relief measure for first time home-buyers who are buying their fist home anywhere in Ontario, Canada.
Effective December 13, 2007, if you have signed an agreement of purchase and sale to buy your first home in Ontario, you may be eligible to apply for the land transfer tax rebate.
Certain conditions apply, and you will not receive your rebate until the bill passes legislature. However, you may apply for the rebate as long as your offer to purchase your first house was accepted and signed by the seller after December 13th, 2007.
In order to qualify for the Ontario Land Transfer Tax rebate, you must be 18 years of age and have never owned a home or had an interest in the ownership of a home, anywhere in the world previously. In addition, your spouse may never have owned a home or had an ownership interest in a home, while you were his/her spouse.
A wide variety of property types are eligible with the main stipulation being that the property become your principle residence within 9 months of taking ownership.
For a complete list of the types of houses/properties that qualify for the land transfer tax rebate in Ontario, click on this link.
Your refund application must be filed within 18 months of the closing taking place.
For details on how to apply for the land transfer tax rebate, see the following article that has been issued by the government of Ontario.
Unless you are buying a brand new home, the land transfer tax 
must be paid upon closing and until the bill becomes law, your land transfer tax and rebate application, will be held by the government.
It is fairly certain that this bill will become law and at that time your rebate will be sent to you, as long as you have applied for it.
This is a significant step towards helping first time buyers purchase a home in Ontario, as the land transfer tax can amount to a fairly sizable amount.
The maximum rebate which can be claimed is $2000.
Here is a simple calculator for determining what your land transfer tax will be on your home purchase and therefore the amount you can expect to have rebated.
Land Transfer Tax Calculator for Ontario
If you have any questions with regards to purchasing your first home, or with respect to the land transfer tax rebate, please do not hesitate to contact me. Buying your first home is one of the most exciting times in your life, and if I can make the transition to home ownership easier for you, I'm more than pleased
to offer my assistance.
If you are considering buying in the Belleville, Quinte, Prince Edward or the surrounding areas in Ontario, and do not currently have a real estate sales representative who you are working with, I would be happy to provide you with my first time home-buyer's package and set you up to receive all suitable listings as they become available (this would cover all mls listings that fall within your guidelines).
It's the perfect time to purchase your first home. Interest rates are low, house prices are still reasonable and with the new land transfer tax rebate, you'll now have additional funds to spend on the other expenses that are incurred with home ownership !
©2008JoSmith
