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Land Transfer Tax Calculation Explained

When you buy a home, one of the closing costs will be a Land Transfer Tax. This is a provincial tax and is based on the selling price of the property. Here is how you determine how much you will have to pay.

Land Transfer Tax Calculations

$ 5.00 per $1,000 of the purchase price on the first $55,000
$10.00 per $1,000 of the remaining value up to $250,000
$15.00 per $1,000 of the purchase price over $250,000

ie: Purchase Price $225,000
$55,000 @ $ 5.00/$1,000 = $275 +
$170,000 @ $10.00/$1,000 = $1,700
Total Land Transfer Tax of $1,975

Don’t forget to budget for this when you are thinking about buying a home.

First-time Buyers
First-time homebuyers are eligible for a refund of all or part of the tax.
The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Finance. No interest is paid on this refund.

Who qualifies?
To claim a refund:

You must be at least 18 years of age;
You must occupy the home as your principal residence within 9 months of the date of transfer; and
cannot have ever owned a home, or an interest in a home, anywhere in the world.
In addition:

your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse.

To find out more go to: http://www.fin.gov.on.ca/en/refund/newhome/index.html

Bill Stobbe

Born and raised in Owen Sound, Bill spent nine years in Toronto working in the advertising and marketing industry. In 1998, Bill returned to his roots to be close to family and to raise his own family. Bill has been helping his valued clients buy and sell real estate since 2003 and has been a consistent top producer in the office. In 2012, Bill left his previous brokerage and started eHomes Realty to address the needs of the ever-changing real estate industry. eHomes Realty is a fast growing, full service brokerage that embraces the latest technologies to streamline the real estate process and in turn, provide relief to sellers with lower commissions. At eHomes Realty, commissions are as low as 3.79%. The real estate industry is changing and eHomes Realty is leading the way. For honest, friendly service, give Bill a call for all of your real estate needs.

Bill Stobbe, Broker of Record

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