Yesterday afternoon Finance Minister Charles Sousa announced an increase to the land transfer tax (LTT) rebate for first-time buyers. The rebate is being doubled from $2,000 to $4,000. The announcement came as part of Ontario’s Fall Economic Statement and is specifically aimed to help first-time buyers enter the housing market. Buyers can start claiming the rebate effective January 1, 2017.
Although home prices continue to rise, every little bit helps to allow buyers a chance to get into the market and begin to build equity and wealth. With the new change, first-time home buyers who are permanent residents will not pay land transfer tax on the first $368,000. In many cases in Kitchener-Waterloo and area, the rebate will translate to these buyers not paying land transfer tax on the purchase of their first home at all.