HomesLawyer.com - Real Estate Legal Experts
"The Best Place To Get Legal Services Catering To Your Needs"
-------------------------------------------------------------
ZEIDMAN LAW OFFICES
200-215 Jardin Drive
Concord, ON L4K 1X5
Tel: (905) 669-7577
Fax: (905) 669-5525
e-mail: office@homeslawyer.com
Buyers' Legal Basics
Land Transfer Tax
The Ontario Government collects Land Transfer Tax on the purchase price of a home whenever a Transfer/Deed of Land is registered. On closing, the buyer of a resale residential property in Ontario will have to pay Land Transfer Tax based on the following formula:
|
Land Transfer Tax in Ontario is the sum of: |
|
0.5% on the first $55,000.00 of the purchase price, plus |
|
1.0% on the part of the purchase price between $55,000.00 and $250,000.00, plus |
|
1.5% on the part of the purchase price between $250,000.00 and $400,000.00, plus |
|
2.0% on any part of the purchase price above $400,000.00 |
Land Transfer Tax Example
For example, if the price of the resale home that you are buying is $220,000.00, the Land Transfer Tax payable on the closing date will be $275.00 (0.5% of $55,000.00) plus $1,650.00 (1.0% of ($220,000.00-$55,000.00)), for a total of $1,925.00.
Refunds to First Time Buyers
First time buyers of newly constructed homes may be eligible to receive up to a $2,000.00 refund of Land Transfer Tax. Please click here to see if you qualify. Also, you may qualify for a Land Transfer Tax refund if you have an Ontario Home Ownership Savings Plan. Please click here to see if you qualify.