The provincial government has announced that it is doubling the existing land transfer tax for first-time home buyers, in effect as of January 1, 2017.
The land transfer tax rebate was previously a rebate of $2,000, and now it will provide $4,000 for first-time home buyers who purchase a home in the province.
The land transfer tax is not something that can be financed, and must be paid upon closing. As such, it can add thousands of dollars to the up-front cost of buying a home. In the Peterborough area, the average land transfer tax is about $3,000.
“I know many families in Peterborough are working hard to save for their first home and thanks to our government,” said Jeff Leal, the MPP for Peterborough.
A new website launched by the Ontario Real Estate Association offers a calculator for the new rebate, so home buyers can see how much they would get back. To quality for the rebate, home buyers must be over 18, they and their spouse must be first-time homebuyers, and their home must be their principal residence.