Finance Minister Charles Sousa announced that the first time home buyers land transfer tax rebate will be doubled to equal a maximum $4000.
Land Transfer Tax is paid every time a home changes hands in many Canadian provinces. In Ontario this tax is calculated by .5% of the first $55,000 of the purchase price, 1% from $55,000 to $250,000, 1.5% of the amount between $250,000 and $400,000 and 2% from $400,000 to $2 million.
Currently, a first time home buyer in Ontario will be rebated up to $2000 of the purchase price by the provincial government, however today, as per the announcement, new home buyers will be rebated up to $4000. So technically, if a home is purchased by a first time home buyer up to a purchase price of $368,000, they will not pay land transfer tax.
Will this make a huge difference for many first time buyers, maybe not if you are living in Toronto where prices are out of this world, but the rest of the province will see the benefit more readily.
Please see the following government website for more info, the rebate amount has not been updated as yet. http://www.fin.gov.on.ca/en/refund/newhome/index.html
Read the following article in the Toronto Star for more info and watch the video for the announcement.
