Brampton Real Estate Blog

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Tuesday, March 24, 2015

Land Transfer Tax Refund for First-time Homebuyers

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.

How much money could I receive?

The maximum amount of the refund is $2,000.
For example:
Cost of HomeTax PayableTax RefundNet Tax Payable
$100,000$725$725$0
$200,000$1,725$1,725$0
$300,000$2,975$2,000$975
If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Finance, within 18 months after the transfer. No interest is paid on this refund.

Do I qualify?

To get a refund of land transfer tax, you:
  • must be at least 18 years old
  • must occupy the home as your principal residence within nine months of the date of transfer
  • cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, and
  • if you entered into an agreement of purchase and sale before December 14, 2007, the eligible home must be newly constructed and you must be eligible for  the Tarion New Home Warranty.
If you have a spouse, your spouse cannot have owned an eligible home, or an interest in an eligible home, anywhere in the world while being your spouse.
You must apply for a refund within 18 months after the date of the transfer.

How do I get the refund?

If you qualify, you can claim an immediate refund at time of registration in one of two ways:
  • If registering electronically, complete the required statements under the "explanation" tab of the land transfer tax statements.
  • If registering on paper, file an Ontario Land Transfer Tax Refund Affidavit For First-time Purchasers of Eligible Homes at the Land Registry Office.

Refunds claimed after registering

If you did not claim the refund at the time of registration and paid all of the land transfer tax owing, you can apply for a refund. To do this, you must submit:
  • an original, completed Ontario Land Transfer Tax Refund Affidavit for First-time Purchasers of Eligible Homes
  • a copy of the registered conveyance (transfer/deed)
  • evidence of the amount of tax that was paid on registration
  • a copy of the docket summary (if transfer was registered electronically)
  • a copy of the agreement of purchase and sale (including all schedules, amendments and assignments)
  • a copy of the statement of adjustments relating to the conveyance
  • a copy of documents that provide proof of occupancy of the home, such as copies of telephone/cable bills, 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

Send your application to

Ministry of Finance
Advisory and Compliance Branch
33 King Street West
PO Box 625
Oshawa ON L1H 8H9
The application and any refund payment may be audited by the Ministry of Finance. Charges may be laid and fines result if you obtain or attempt to obtain a refund by deceit, falsehood or any fraudulent means.
source:  Ontario Ministry of Finance  www.fin.gov.on.ca 

Wednesday, March 18, 2015

Bank of Canada Rate Expected to Stay Steady

The Bank of Canada announced on March 4th, 2015 it was keeping its trend-setting overnight lending rate at 0.75 per cent. Six weeks earlier, the Bank surprised markets by cutting the rate by a quarter of a percentage point as insurance against economic damage from the drop in oil prices.

In its March announcement, the Bank was upbeat about recent and further expected strength from exports and investment. Only time will tell to what extent these factors offset economic fallout from lower oil prices, so speculation remains as to whether the Bank will cut interest rates again later this year.

As of March 4th, 2015, the advertised five-year lending rate stood at 4.74 per cent, down 0.05 percentage points from the previous Bank rate announcement on January 21st, and down 0.25 percentage points from one year ago.

The Bank’s next interest rate announcement is on April 15th, when it also releases its updated economic forecast. At that time and barring some unforeseeable economic calamity, it will keep rates steady rather than cutting them further.

(CREA 03/04/2015) 

Tuesday, March 17, 2015

What All New Home Buyers Need to Know

(NC) One of the many advantages of buying a new house or condo – aside from the benefits of being able to pick and choose the features and finishes to suit your taste – is that almost all new homes in Ontario come with a warranty.

In fact, the province's new home warranty program offers coverage up to a maximum of $300,000 on each property.  This warranty is administered by Tarion Warranty Corporation and covers your new home for up to seven years. In the event a sale can't be completed, there is also deposit protection up to a maximum of $40,000 for new houses and $20,000 for new condos. (Excess deposit amounts are also protected by the trust provisions of the Condominium Act.)
The warranty is broken out over one-, two-, and seven-year coverage periods during which time purchasers can apply to Tarion and their builder to remedy any problems that may have arisen since taking possession of their new home.

The one-year warranty protects against defects in workmanship and materials and any violations to the Ontario Building Code. The two-year warranty protects against defects in the electrical, plumbing and heating systems, any water penetration issues, and defects in the exterior cladding. During the seven-year warranty period you are protected against major structural defects that could affect the safety of the dwelling, such as the failure of a load bearing wall.

A complete overview of the home warranty program is found in a document called the Homeowner Information Package. You can access this document anytime at tarion.com. Your builder is also required by law to provide you with access to a copy of it before, or at, the closing of your new home.

The law dictates that all new homes in Ontario come with this mandatory warranty coverage. It is also required by law that all new home builders in the province be registered with the Tarion Warranty Corporation. Every registered new home builder in the province is listed on the Ontario Builder Directory pages at tarion.com. If your builder does not readily provide you with requested warranty rights information, and you do not find their name on the directory, you are advised to think twice about purchasing that home.

More information is available online at tarion.com.