Calculating Land Transfer Tax Ontario

Land Transfer Tax

Please contact Wendy McFadden, Broker of Record, for your Real Estate questions.

Calculating Land Transfer Tax

Effective April 21, 2017, a 15% Non-Resident Speculation Tax is imposed on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) or taxable trustees. This new tax is in addition to Ontario's current Land Transfer Tax.

This page provides general guidelines on the calculation of land transfer tax payable on every registration and disposition of land in Ontario.

The information on this page does not replace the law found in the Land Transfer Tax Act (Act) and related regulations.

Introduction 

Land transfer tax is payable on every conveyance of land tendered for registration and every unregistered disposition of a beneficial interest in land, unless specifically exempt under the Act or regulations.

The definition of land as defined in subsection 1(1) of the Act is broad and includes lands, buildings, structures, structures to be constructed, fixtures and any interest in these.

Land transfer tax is calculated on the value of the consideration as defined in subsection 1(1) of the Act. It includes the purchase price, liabilities assumed, benefits conferred, soft costs and the cost of upgrades. In some instances, the value of the consideration is deemed to be the fair market value of the land. For example, leases with terms that can exceed fifty years and certain transfers between corporations and shareholders.

For the definitions of value of the consideration and land, please see Definitions or the Act.

Vacant lot with a construction contract

Where a construction contract is entered into as part of the arrangement relating to the purchase of a vacant lot or lots, the value of the consideration is calculated on the:

  • total cost of the lot, plus
  • cost of construction contract.

Value of consideration in foreign currency

All monies must be expressed in Canadian dollars. The land transfer tax statements must set out the value of the consideration in Canadian dollars. The date of currency conversion should be the:

  • date that the agreement of purchase and sale is accepted and becomes a binding contract, or
  • date of registration if there is no written agreement.

Tax rates

Effective January 1, 2017, the tax rates for land transfer tax will depend on the date of the agreement of purchase and sale.

If an agreement of purchase and sale is entered into after November 14, 2016, and registration or the disposition occurs on or after January 1, 2017, the tax rates on the value of the consideration are as follows:

  • amounts up to and including $55,000: 0.5%
  • amounts exceeding $55,000, up to and including $250,000: 1.0%
  • amounts exceeding $250,000, up to and including $400,000: 1.5%
  • amounts exceeding $400,000: 2.0%
  • amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5%.

For the definition of single family residence, see Definitions or the Act.

Transitional tax rates

The following rates of land transfer tax apply to all registrations and dispositions that occur prior to January 1, 2017. Tax is calculated on the value of the consideration at the following rates:

  • amounts up to and including $55,000: 0.5%
  • amounts exceeding $55,000, up to and including $250,000: 1.0%
  • amounts exceeding $250,000: 1.5%
  • amounts exceeding $400,000, where the land contains one or two single family residences: 2.0%.

For transfers with agreements of purchase and sale that were entered into on or before November 14, 2016, the above rates will apply regardless of the date of registration or disposition.

Electronic registration on or after January 1, 2017

Teraview, the software used to access Ontario's electronic land registration system, will not be able to accommodate the transitional tax rates. Effective January 1, 2017, all electronic registrations will be processed at the new tax brackets and tax rates. Accordingly, anyone who has overpaid the land transfer tax may claim a refund of the portion of land transfer tax overpaid. In the alternative, transferees may pre-pay land transfer tax at the Ministry of Finance.

Documentation may be submitted to:

Ministry of Finance
Land Taxes Section
Compliance Branch
33 King Street West
Oshawa ON L1H 8H9

Documentation required for refunds includes:

  1. Authorizing or Cancelling a Representative forms, completed by each transferee
  2. copy of the Registered Instrument
  3. copy of the docket summary showing the amount of land transfer tax paid
  4. copy of the Agreement of Purchase and Sale, with all schedules attached
  5. copy of the Statement of Adjustments
  6. if the value of the consideration is based on the fair market value of the land, any appraisals or documentation that is evidence of the fair market value of the land
  7. a cover letter setting out the reason for the refund, and to whom the refund cheque should be made payable.

Documentation required to pre-pay land transfer tax includes:

  1. Authorizing or Cancelling a Representative forms, completed by each transferee
  2. copy of the Document in preparation
  3. cheque for land transfer tax (certified, if not drawn on the solicitor's trust account)
  4. copy of the Agreement of Purchase and Sale, with all schedules attached
  5. copy of the draft Statement of Adjustments
  6. if the value of the consideration is based on the fair market value of the land, any appraisals or documentation that is evidence of the fair market value of the land
  7. a cover letter requesting the prepayment of land transfer tax.

Calculation example

For a transfer of land or disposition of beneficial interest in land in which the value of the consideration equals $400,000:

  1. multiply $55,000 by 0.5% (55,000 × 0.005) = $275
  2. multiply the amount exceeding $55,000 up to $250,000 by 1.0% (195,000 × 0.01) = $1,950
  3. multiply the amount exceeding $250,000 up to $400,000 by 1.5% (150,000 × 0.015) = $2,250.

Total land transfer tax payable = $4,475.

Quick calculation formula

Formula for quick calculation of land transfer tax

For a quick calculation of land transfer tax, refer to the following formulae. Value of the consideration for a conveyance or disposition is shown as VOC. Land transfer tax payable is shown as LTT. Single family residence as defined in the Land Transfer Tax Act is shown as SFR.

Tax rates

If the agreement of purchase and sale was entered into after November 14, 2016, the tax rates for registrations or dispositions that occur on or after January 1, 2017, are as follows:

For the value of the consideration:

  • up to and including $55,000: LTT = VOC × 0.005
  • exceeding $55,000, and up to $250,000: LTT = (VOC × 0.01) - $275
  • exceeding $250,000, and up to $400,000: LTT = (VOC × 0.015) - $1,525
  • exceeding $400,000, for property other than property with one or two SFRs: LTT = (VOC × 0.02) - $3,525
  • exceeding $400,000, and up to $2,000,000, for property with one or two SFRs: LTT = (VOC x 0.02) - $3,525
  • for property with one or two SFRs exceeding $2,000,000: LTT = (VOC × 0.025) - $13,525.

Transitional tax rates

If the agreement of purchase and sale was entered into:

  • after November 14, 2016, and registration or disposition occurs before January 1, 2017, or
  • on or before November 14, 2016, regardless of the date of registration or disposition:

For the value of the consideration:

  • up to and including $55,000: LTT = VOC × 0.005
  • exceeding $55,000, and up to $250,000: LTT = (VOC × 0.01) - $275
  • exceeding $250,000, for property other than property with one or two SFRs: LTT = (VOC × 0.015) - $1,525
  • exceeding $250,000, and up to $400,000, for property with one or two SFRs: LTT = (VOC × 0.015) - $1,525
  • for property with one or two SFRs exceeding $400,000: LTT = (VOC × 0.02) - $3,525.

Historical land transfer tax rates

Land transfer tax rates payable on the value of the consideration for registered conveyances

Effective dateResidents of CanadaNon-residents of Canada and trustees for non-residents of CanadaAll landAll landJanuary 1, 2017
(unless grand-parented due to the agreement of purchase and sale being entered into on or before November 14, 2016)Amounts up to and including $55,000: 0.5%
Amounts exceeding $55,000, up to and including $250,000: 1.0%
Amounts exceeding $250,000, up to $400,000: 1.5%
Amounts exceeding $400,000: 2.0%
Amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5%Same rate as for residents of CanadaMay 7, 1997Amounts up to and including $55,000: 0.5%
Amounts exceeding $55,000, up to and including $250,000: 1.0%
Amounts exceeding $250,000: 1.5%
Amounts exceeding $400,000, where the land contains one or two single family residences: 2.0%Same rate as for residents of Canada  Unrestricted landLand that is not unrestricted landJune 1, 1989Amounts up to and including $55,000: 0.5%
Amounts exceeding $55,000. up to and including $250,000: 1.0%
Amounts exceeding $250,000: 1.5%
Amounts exceeding $400,000, where the land contains one or two single family residences: 2.0%Same rate as for residents of Canada20%January 1, 1986Amounts up to and including $55,000: 0.5%
Amounts exceeding $55,000: 1%
Amounts exceeding $250,000, where the land contains one or two single family residences: 1.5%Same rate as for residents of Canada20%April 11, 1979Amounts up to and including $45,000: 0.4%
Amounts exceeding $45,000: 0.8%Same rate as for residents of Canada20%April 20, 1977Amounts up to and including $35,000: 0.3%
Amounts exceeding $35,000: 0.6%Same rate as for residents of Canada20%April 10, 1974Amounts up to and including $35,000: 0.3%
Amounts exceeding $35,000: 0.6%20%20%

Land transfer tax rates payable on the value of the consideration for unregistered conveyances

Effective dateResidents of CanadaNon-residents of Canada and trustees for non-residents of CanadaAll landAll landJanuary 1, 2017
(unless grand-parented due to the agreement of purchase and sale being entered into on or before November 14, 2016)Amounts up to and including $55,000: 0.5%
Amounts exceeding $55,000, up to and including $250,000: 1.0%
Amounts exceeding $250,000, up to $400,000: 1.5%
Amounts exceeding $400,000: 2.0%
Amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5%Same rate as for residents of CanadaMay 7, 1997Amounts up to and including $55,000: 0.5%
Amounts exceeding $55,000, up to and including $250,000: 1.0%
Amounts exceeding $250,000: 1.5%
Amounts exceeding $400,000, where the land contains one or two single family residences: 2.0%Same rate as for residents of Canada  Unrestricted landLand that is not unrestricted landJuly 19, 1989Amounts up to and including $55,000: 0.5%
Amounts exceeding $55,000, up to and including $250,000: 1.0%
Amounts exceeding $250,000: 1.5%
Amounts exceeding $400,000, where the land contains one or two single family residences: 2.0%Same rate as for residents of Canada20%April 21, 1983Not applicableNot applicableFor agricultural land, only, 20%. Note: a disposition of land is deemed to have occurred if a corporation owning agricultural land becomes a non-resident of Canada through the sale of shares or through amalgamationApril 10, 1974Not applicableNot applicableNot applicable

Electronic registration

Automatic calculation of tax on electronic land registrations

The electronic land registration system automatically calculates the land transfer tax payable based on the amount in box (g) 'VALUE of land, building, fixtures and goodwill subject to Land Transfer Tax' in the Consideration tab.  The system also takes into account any exemptions from tax claimed.

Where the value of the consideration is greater than $400,000, the > $400,000 tab of the land transfer tax section of the electronic land registration system must be completed. Statement 9031 must be selected:

  • 9031: I have read and considered the definition of "single family residence" set out in subsection 1(1) of the Act.  The land being conveyed herein:

Also, one of the following three statements must be selected:

  • 9032: contains at least one and not more than two single family residences.
  • 9033: does not contain a single family residence or contains more than two single family residences.
  • 9038: contains at least one and not more than two single family residences and the lands are used for other than just residential purposes.  The transferee has accordingly apportioned the value of consideration on the basis that the consideration for a single family residence is AMOUNT and the remainder of the lands are used for TEXT purposes.

Selecting statement 9038 requires the apportioned amount of the value of consideration be inserted where AMOUNT is indicated, as well as additional text inserted describing the use of the remainder of the land where TEXT is indicated.  Please note that "vacant" or "no use" is not considered to be another use.

Definitions

"land" includes lands, tenements and hereditaments and any estate, right or interest therein, a structure to be constructed on land as part of an arrangement relating to a conveyance of land, a leasehold interest or estate, the interest of an optionee, the interest of a purchaser under an agreement to sell land, or goodwill attributable to the location of land or to the existence thereon of any building or fixture, and fixtures.

"single family residence" means a unit or proposed unit under the Condominium Act, 1998 or a structure or part of a structure that is designed for occupation as the residence of a family, including dependants or domestic employees of a member of the family, whether or not rent is paid to occupy any part of it and whether or not the land on which it is situated is zoned for residential use and,

  1. includes such a residence that is to be constructed as part of the arrangement relating to a conveyance, and
  2. does not include such a residence that is constructed or is to be constructed on agricultural land that is eligible to be classified in the farm property class prescribed under the Assessment Act.

"value of the consideration" includes,

  1. the gross sale price or the amount expressed in money of any consideration given or to be given for the conveyance by or on behalf of the transferee and the value expressed in money of any liability assumed or undertaken by or on behalf of the transferee as part of the arrangement relating to the conveyance and the value expressed in money of any benefit of whatsoever kind conferred directly or indirectly by the transferee on any person as part of the arrangement relating to the conveyance,
     
  2. in the case of a final order of foreclosure under any mortgage or charge affecting land, the lesser of,
     
    1. the value of the consideration determined under clause (a) plus the amount owed under the mortgage or charge at the time it is foreclosed, including principal, interest and all other costs and expenses other than municipal taxes, secured by the mortgage or charge and owing at the time plus the amount owing similarly calculated under any mortgage or charge that is subsequent in priority to the mortgage or charge in respect of which the final order of foreclosure is made and that is held by the mortgagee or chargee in whose favour the final order of foreclosure that is registered is made, or
       
    2. an amount established to the satisfaction of the Minister to be equal to the fair market value of the land that is subject to the mortgage or charge,
       
  3. 1. in the case of a conveyance of land to the mortgagee or chargee under a mortgage or charge affecting the land when the conveyance is given in satisfaction of the amount owed under the mortgage or charge, the lesser of,
     
    1. the value of the consideration determined under clause (a) plus the amount owed under the mortgage or charge at the time the conveyance is made, including principal, interest and all other costs or expenses other than municipal taxes, secured by the mortgage or charge and owing at the time plus the amount owing similarly calculated under any other mortgage or charge that is subsequent in priority to the mortgage or charge in respect of which the conveyance is made, if that mortgage or charge is held by the mortgagee or chargee to whom the conveyance is made, or
       
    2. an amount established to the satisfaction of the Minister to be equal to the fair market value of the land that is subject to the conveyance,
       
  4. in the case where a lease of land, a transfer of the interest of a lessee under a lease of land, or a notice of any kind in writing signifying the existence of an unregistered lease of land or of an unregistered transfer of the interest of a lessee under a lease of land is not exempt from tax by virtue of subsection (6), the fair market value, ascertained as at the time of the tender or submission for registration, of the land to which the lease extends or of a smaller portion of such land if only such smaller portion is conveyed,
     
  5. in the case of a caution or notice of any kind in writing signifying the existence of any unregistered instrument or writing by which land is conveyed and that is not a notice in writing described in clause (c), the value of the consideration determined under clause (a) or (b) for the land conveyed by the unregistered instrument or writing that is referred to in such caution or notice in writing that is not a notice in writing described in clause (c),
     
  6. in the case of a conveyance of land from a trustee (whether or not the trustee is so described in the conveyance) to a person to whom or for whose benefit any equitable or beneficial interest in the land has been transferred by a conveyance or conveyances that have not been registered, the value of the consideration determined under clauses (a) to (d), whichever is applicable, in respect of the unregistered conveyances made to such person,
     
  7. in the case of a conveyance of land from a trustee to another trustee (whether or not either trustee is so described in the conveyance) where,
    1. the person to whom or for whose benefit any equitable or beneficial interest in the land is held is not the same person to whom or for whose benefit any equitable or beneficial interest in the land was held by the trustee making the conveyance when that trustee first acquired legal interest in the land, and
       
    2. valuable consideration has been given by the transferee of an equitable or beneficial interest for the transfer of any equitable or beneficial interest in the land held by the trustee making the conveyance while that trustee was the holder of the legal interest in the land, the fair market value, ascertained at the time of the tender or submission for registration, of the land to which the conveyance extends, or
  8. in the case of a conveyance of land to a corporation where any part of the consideration consists of the allotment and issuance of the corporation's shares or in the case of a conveyance of land from a corporation to any of its shareholders the fair market value, ascertained at the time of the tender or submission for registration, of the land to which the conveyance extends.

Additional Information

If this page does not completely address your particular situation, refer to the Act and related regulations, visit our website at ontario.ca/finance or contact:

Ministry of Finance
Land Taxes Section
33 King Street West, 3rd Floor
Oshawa ON   L1H 8H9

  • 1‑866‑ONT‑TAXS (1‑866‑668‑8297)
  • Fax: 905‑433‑5770
  • 1‑800‑263‑7776 for teletypewriter (TTY)
  • ***This information has been received from the Ministry of Finance*** strictly to assist you with the calculation of Land transfer tax.


Land Transfer Tax Refunds for First-Time Homebuyers

Table of contents

Introduction

Refund amounts and limitations

Requirements to qualify for the refund

Procedures to apply for the refund

Definitions

Introduction

When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax.

To claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home, anywhere in the world while he or she was your spouse. Previous ownership in a home means you do not qualify for the land transfer tax first-time homebuyers refund. The method of acquiring the home (e.g., purchase, gift or through an inheritance) is not relevant.

You cannot re‑qualify as a first‑time homebuyer. This rule may be different from other federal programs for first‑time homebuyers (e.g., the Canada Revenue Agency Home Buyers' Plan).

General

Land transfer tax applies to all conveyances of land in Ontario. First‑time homebuyers may be eligible for a refund of all or part of the tax payable.

  • For agreements of purchase and sale entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home.
  • For agreements of purchase and sale entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.

Qualifying taxpayers may claim an immediate refund at time of registration as follows:

If the refund is claimed at the time of registration, it may offset the land transfer tax that would be payable. If the refund is not claimed at registration, the tax must be paid, and a claim for the refund may be submitted to the Ministry of Finance. No interest is paid on this refund. Procedures for refunds are outlined below, under Procedures to apply for the refund.

Refund amounts and limitations

How much money could I receive?

For conveyances or dispositions that occur before January 1, 2017, the maximum amount of the refund is $2,000.

Beginning January 1, 2017, the maximum amount of the refund is $4,000. The increased limit of $4,000 applies only to conveyances or dispositions that occur on or after January 1, 2017, regardless of the date the agreement of purchase and sale was signed.

Beginning January 1, 2017, no land transfer tax would be payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.

For information on determining the value of the consideration for transfers of new homes, readDetermining the Value of the Consideration for Transfers of New Homes.

For information on calculating land transfer tax, read Calculating Land Transfer Tax.

Limitation

The refund will be reduced if one (or more) of the purchasers is not a first‑time homebuyer. The refund will be proportionate to the interest acquired by the individuals who qualify for the refund.

Examples – Parent and Child

Where a parent who is not a first‑time homebuyer, and a child who is a first‑time homebuyer, purchase a home with equal 50/50 interests, the child may claim a refund of 50% of the land transfer tax refund. The child's claim cannot exceed 50% of the maximum allowable refund (i.e., 50% of $2,000 for conveyances or dispositions prior to January 1, 2017 or 50% of $4,000 for conveyances or dispositions on or after January 1, 2017).

In a situation where a parent is also on title to a child's property, such as at the insistence of a bank, it will be necessary to pay land transfer tax at the time of registration and apply for a refund from the Ministry of Finance.

If the parent did not acquire a beneficial interest in the property as a result of the conveyance:

  • the ministry will accept the fact that the parent was on title as a trustee for the child, and
  • the child would qualify for the first‑time homebuyers refund, provided that all other eligibility requirements are met, and evidence of the trust is submitted (e.g., a letter from the bank confirming that the parent is on title for mortgage purposes or a copy of a trust agreement).

Example ‑ Spouse

A qualifying purchaser may also claim a refund in proportion to his or her spouse's interest if that purchaser's spouse has owned a home before becoming the purchaser's spouse, but not while being that purchaser's spouse.

The ability of a purchaser to include his or her spouse’s interest in determining the maximum refund is restricted if the spouse is not a Canadian citizen or a permanent resident of Canada on the date of the conveyance or disposition. For more information, read here.

My partner and I are buying a home together. I have owned a home, but he has not. Does he qualify for the first‑time homebuyers refund?

Your partner's eligibility for a refund depends on whether you are spouses as defined in section 29 of the Family Law Act. Please refer to the Definitions section for the meaning of spouse.

If you are not spouses, then your partner may claim a refund based on his interest acquired in the home. If you are spouses, and both of you are Canadian citizens or permanent residents of Canada, your partner may claim a refund up to the maximum refund amount applicable to your transaction (you can claim the refund for your interest and your partner's interest), as long as you did not own a home while you were each other's spouse. If you did own the home while you were spouses of each other, then your partner does not qualify for a refund even if you did not live in the house together.

Please refer to the Refund amounts and limitations section for information about maximum refund amount.

Requirements to qualify for the refund

To qualify for a refund:

  • The purchaser must be at least 18 years old.
  • The purchaser must occupy the home as their principal residence within nine months of the date of transfer.
  • The purchaser cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at any time.
  • If the purchaser entered into an agreement of purchase and sale before December 14, 2007, the home must be a newly constructed home and the purchaser must be eligible for the Tarion New Home Warranty.
  • If the purchaser has a spouse, the spouse cannot have owned an eligible home, or had any ownership interest in an eligible home, anywhere in the world, while he or she was the purchaser's spouse. If this is the case, no refund is available to either spouse.

Additional requirement

Beginning January 1, 2017, eligibility for the first‑time homebuyers refund program is restricted to Canadian citizens and permanent residents of Canada.

As a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016, would remain eligible for the refund regardless of citizenship or residency status.

Purchasers who would otherwise be eligible for a refund, but who are not Canadian citizens or permanent residents of Canada when the transaction closes, have 18 months following registration to become eligible. Upon obtaining Canadian citizenship or permanent resident status, these purchasers may apply for the refund within the 18‑month period following registration of the conveyance or the date the unregistered disposition occurs.

Where a purchaser who would otherwise be eligible for a refund enters into an agreement of purchase and sale on or after November 14, 2016 and that purchaser has a spouse who is not a Canadian citizen or a permanent resident of Canada on the date of the conveyance or the date the unregistered disposition occurs, the purchaser cannot include his or her spouse's interest in determining the maximum refund. However, if the spouse becomes a Canadian citizen or a permanent resident of Canada within 18 months after the date of the conveyance or the disposition, the purchaser may, at that time, claim his or her spouse's interest. The combined claims cannot exceed the maximum land transfer tax refund of $4,000.

Time limit to apply for refund

A qualifying purchaser must apply for the refund within 18 months after the date of registration of the conveyance or the date the unregistered disposition occurs.

Audit

The application and any refund payment are subject to audit by the Ministry of Finance. Charges may be laid, and fines may result, where a person obtains or attempts to obtain a refund by deceit, falsehood or any fraudulent means. The maximum fine, upon conviction, is $4,000.

Procedures to apply for the refund

Electronic registration

In the electronic land registration system, the refund may be claimed by selecting the appropriate electronic statements located under the Explanation tab of the land transfer tax section. Statement 9028 or 9029 must be completed.

As well, the following statements must be completed:

9127 and
9128 or (9129 and either 9130 or 9131) and
9132 and

In addition, for agreements of purchase and sale entered in prior to December 14, 2007 where the home purchased must be a newly constructed home, the following statement must be completed:

9133

Statements 9028, 9029, 9127, 9131, 9132 and 9133 require additional information to be entered. The wording of these electronic statements is as follows:

9028

Fraction of parties who are qualifying home purchasers: ALL OR FRACTION (N/D) and the agreement of purchase and sale was entered into before December 14, 2007.

9029

Fraction of parties who are qualifying home purchasers: ALL OR FRACTION (N/D) and the agreement of purchase and sale was entered into after December 13, 2007.

9127

NAMES(S) is/are (a) first‑time home purchaser(s) as defined in the Land Transfer Tax Act and

9128

None of the purchaser(s) is/are a "spouse" as defined in section 29 of the Family Law Act.

9129

The purchaser(s) has/have (a) "spouse(s)" as defined in section 29 of the Family Law Act and

9130

(a) the spouse(s) has/have never owned an eligible home

9131

(b) The spouse(s) NAME(S) previously owned an eligible home at ADDRESS, but sold it on YYYY/MM/DD (Note: In order to qualify for a refund, any spouse must have sold any eligible home prior to becoming the spouse of the first‑time purchaser)

9132

The purchaser(s) will occupy the qualifying home as his/her/their principal residence on YYYY/MM/DD(Note: must be within 9 months of the date of registration or disposition), and

9133

Where the qualifying home is a "newly‑constructed home" in respect of which the purchasers are entitled to a warranty under the Ontario New Home Warranties Plan Act, the registration number for the builder of the newly constructed home is NUMBER.

NOTE: If the refund is claimed in the electronic land registration system, there is no requirement to subsequently submit a paper Ontario Land Transfer Tax Refund Affidavit for First – Time Purchasers of Eligible Homes to the ministry.

Refunds claimed at a land registry office

For paper registrations, qualifying taxpayers or their solicitors may claim an immediate refund at the time of registration by filing the Ontario Land Transfer Tax Refund Affidavit For First‑Time Purchasers of Eligible Homes along with their Transfer/Deed and Land Transfer Tax Affidavit at a Land Registry Office.

Refunds claimed at the Ministry of Finance

Where a qualifying taxpayer is unable to claim the refund at registration, the tax will be payable at that time and a refund claim may be made to the Ministry of Finance, at the address at the bottom of this page. The following documentation must be submitted for a refund claim to be processed:

  • The Ontario Land Transfer Tax Refund Affidavit For First‑Time Purchasers of Eligible Homes.
  • A copy of the registered conveyance (transfer/deed). If not registered electronically, submit a photocopy of the Land Registry Office's original which shows the tax paid.
  • A copy of the docket summary, if the conveyance was registered electronically.
  • A copy of the agreement of purchase and sale, together with all schedules, amendments and assignments, along with a copy of the statement of adjustments relating to the conveyance.
  • Proof of occupancy, with the new address listed, such as copies of telephone/cable bills, credit card statements, driver's licence, newspaper/magazine subscriptions, etc.
  • For agreements of purchase and sale entered into before December 14, 2007, a copy of the Tarion New Home Warranty, which is also known as the Certificate of Completion and Possession.
  • For agreements of purchase and sale entered into after November 14, 2016 and registered on or after January 1, 2017, proof of Canadian citizenship or permanent residence in Canada.

Direct bank deposit

Get your Ministry of Finance refund or rebate faster with direct deposit! It's easy and secure.

Download: Direct Deposit Request / Direct Deposit Authorization

Definitions

"eligible home" means,

  1. a detached house;
  2. a semi‑detached house, including a dwelling house that is joined to another dwelling house at the footing or foundation by a wall above or below grade or both above and below grade;
  3. a townhouse;
  4. a share or shares of the capital stock of a co‑operative corporation if the share or shares are acquired for the purpose of acquiring the right to in‑habit a housing unit owned by the corporation;
  5. a mobile home that complies with the Canadian Standards Association Standard CAN/CSA‑Z240 Mobile Homes and is suitable for year round permanent residential occupation;
  6. a condominium unit;
  7. a residential dwelling that is a duplex, triplex or fourplex;
  8. a partial ownership interest as a tenant in common of real property if the ownership interest was acquired for the purpose of acquiring the right to inhabit a housing unit forming part of the real property;
  9. a manufactured home that is manufactured in whole or in part at an offsite location, that is intended for basement installation, that is suitable for year round permanent residential occupation and that complies with,
    1. the Building Code made under the Building Code Act, 1992;
    2. if the manufactured home is constructed in sections that are not wider than 4.3 metres, Canadian Standards Association Standard Z240.2.1 Structural Requirements for Mobile Homes and Canadian Standards Association Standard Z240.8.1 Windows for Use in Mobile Homes; or
    3. if the manufactured home is constructed in sections that are 4.3 metres or wider, Canadian Standards Association Standard A277 Procedure for Certification of Factory Built Houses, or
  10. any other residential property as may be prescribed.

"newly constructed home" means a home in respect of which the purchaser is entitled to a warranty under section 13 of the Ontario New Home Warranties Plan Act (ONHWPA) and which is sold to the purchaser by a vendor as defined in ONHWPA.

permanent resident of Canada” means a permanent resident as defined in the Immigration and Refugee Protection Act (Canada);

"purchaser" means,

  1. if the conveyance or disposition of the qualifying home occurs before January 1, 2017, an individual who is at least 18 years of age and who has never owned an eligible home anywhere in the world and whose spouse has not owned an eligible home anywhere in the world while he or she was a spouse of the individual,
  2. if the conveyance or disposition of the qualifying home occurs on or after January 1, 2017 and the agreement of purchase and sale for the home was entered into on or before November 14, 2016, an individual who is at least 18 years of age and who has never owned an eligible home anywhere in the world and whose spouse has not owned an eligible home anywhere in the world while he or she was a spouse of the individual, and
  3. if the conveyance or disposition of the qualifying home occurs on or after January 1, 2017 and the agreement of purchase and sale for the home was entered into after November 14, 2016, an individual who is at least 18 years of age, who is a Canadian citizen or permanent resident of Canada, and who has never owned an eligible home anywhere in the world and whose spouse has not owned an eligible home anywhere in the world while he or she was a spouse of the individual.

"qualifying home" means,

  1. for agreements of purchase and sale entered into before December 14, 2007, a newly constructed home, and
  2. for agreements of purchase and sale entered into after December 13, 2007, an eligible home.

"spouse" means spouse as defined in section 29 of the Family Law Act.  At present, "spouse" means either of two persons who, (a) are married to each other, or (b) have together entered into a marriage that is voidable or void, in good faith on the part of a person relying on this clause to assert any right, and in addition includes either of two persons who are not married to each other and have cohabited,

  1. continuously for a period of not less than three years, or
  2. in a relationship of some permanence, if they are the natural or adoptive parents of a child.

Additional information

If this page does not completely address your situation, refer to the Act and related regulations, visit our website at ontario.ca/finance or contact:

Ministry of Finance
Land Taxes Section
33 King Street West, 3rd Floor
Oshawa ON L1H 8H9

  • 1‑866‑ONT‑TAXS (1‑866‑668‑8297)
  • Fax: 905‑433‑5770
  • 1‑800‑263‑7776 for teletypewriter (TTY)




Wendy McFadden,Broker of Record, Welcome Home RealEstateLtd,Brokerage wendy@welcomehomerealestate.ca
Wendy McFadden,Broker of Record, Welcome Home RealEstateLtd,Brokerage wendy@welcomehomerealestate.ca