This is a tax charged by the province when ownership of property is changed. It is normally paid by the purchaser when property is bought. You should check with your lawyer whenever you are considering any changes to title of real estate property (including adding spouses or children). It is better to understand all the ramifications prior to making any changes.
Below are details for Ontario Land Transfer Tax.
In ONTARIO the Land Transfer Tax (LTT) is charged as follows:
- 0.5% on amounts up to and including $55,000
- +1.0% on the amount exceeding $55,000 up to and including $250,000
- +1.5% on amounts above $250,000 up to and including $400,000
- +2.0% on the amount in excess of $400,000
For example, the Land Transfer Tax on a house costing $250,000 would be $2,225.00
This is calculated as follows:
- 55,000 X 0.5% = $275.00
- 195,000 X 1.0% = $1,950.00
Adding these two amounts together = $2,225.00
Ontarians registered in the Ontario Home Ownership Savings Plan (OHOSP) before December 31, 1993 still qualify for a rebate of the Land Transfer Tax.
FIRST-TIME BUYERS - The main points are listed below but please contact your lawyer for more details.
- You cannot have received an OHOSP based refund of the Land Transfer Tax.
- First-time buyers who purchase a newly constructed house prior to March 31, 2000 will receive a rebate of the Land Transfer Tax.
- Buyers with an agreement to purchase a house with a possession date before December 31, 2000 qualify for the rebate. The land transfer must be registered before December 31, 2001.
- The maximum rebate is $1,725 - this is equivalent to the Land Transfer Tax on a $200,000 house.
- You do not qualify for the rebate if you, or your spouse, have previously owned a house or an interest in a house.
Click Here to fill out a short application & get a no-obligation mortgage quote. Click Here