“How do I claim the new land transfer tax rebate for first-time buyers?” says Dan from Mississauga
March 3rd, 2008 Categories: First Time Buyers, Mortgages, Economics, Finance, Oakville Real Estate News
I received a call this evening from a gentleman named Dan from Mississauga who had just purchased his first home, a resale.
Dan called me as he had read my post on the new rebate and had been surprised that his lawyer did not know about it. He was wanting to know how to go about claiming it.
LET’S REVIEW THE SITUATION:
1) December 13, 2007, the Ontario government announced a proposed amendment to extend the Land Transfer Tax Refund Program for First-Time Homebuyers to include purchases of resale homes, to a maximum refund of $2000.
2) But the proposed amendment has not yet been passed by the Legislature and needs to receive Royal Assent to become law. It is my understanding that this is a “formality” and that it will likely be passed.
WHAT DO DO BEFORE THE LAW IS PASSED?
1) Pay the land transfer tax upon registration
2) Download the form - Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes (Resale)
3) Submit a copy of the registered instrument on which land transfer tax was paid (in the case of electronic registration, include a copy of the docket summary which relates to the transaction along with a copy of the statement of adjustments)
4) Submit a copy of the agreement of purchase and sale (only those agreements of purchase and sale entered into after December 13, 2007 may qualify)
5) Although eligible first-time buyers of resale homes may apply for the refund once the transaction has closed and the tax has been paid, the ministry would retain the refund requests for processing and would issue refunds after the proposed amendments become law.
6) Certain conditions apply:
- The purchaser must be at least 18 years of age.
- Application for the refund must be made within 18 months after the date of the conveyance or disposition.
- The purchaser must occupy the home as his or her principal residence within 9 months of the date of closing.
- The purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world.
- A spouse of the purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse
For more information consult the Ministry of Revenue website, click here or call:
Tel.: 905 433-6361
Fax: 905 433-5770
1 800 263-7776
Submissions should be mailed to:
Ministry of Revenue
Land Taxes Section
33 King Street West
PO Box 625
Oshawa ON L1H 8H9
Dan, hope that helps! Having an extra $2,000 back is nice when buying that first home. To keep abreast of real estate news subscribe now to the Oakville Buzz!
This entry was posted on Monday, March 3rd, 2008 at 5:32 pm and is filed under First Time Buyers, Mortgages, Economics, Finance, Oakville Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.