As of January 1, Ontario’s first-time home buyers are eligible to receive a $4,000 land transfer tax rebate, an increase of $2,000. In cities where the average price of a home is $368,000 or less, the new rebate exempts buyers from paying the tax altogether. Today, Minister of Agriculture, Food & Rural Affairs, Minister of Small Business, and MPP for Peterborough, the Honourable Jeff Leal and President of the Peterborough and the Kawarthas Association of REALTORS® (PKAR) Dianne Tully gathered at the Peterborough real estate office to promote the new rebate, which protects their local home buyers from paying any tax on their first home.
“This tax break will go a long way towards making home ownership more affordable for first-time buyers in Peterborough and the county, where the average price of a home is $319,800,” said Dianne Tully president of PKAR. “The extra money can be put towards a down payment, closing costs or purchasing appliances for a new home. Buyers should talk to a local Realtor about how they can claim the rebate and save up to $4,000 on their first home.”
A new website developed by the Ontario Real Estate Association (OREA) – www.FirstHomeRebate.ca – allows first-time home buyers to calculate exactly how much rebate they qualify for. The provincial land transfer tax is calculated on a graduated scale based on a property’s purchase price and is paid at closing.
“The Ontario government deserves credit for taking positive steps to address affordability,” said Tim Hudak OREA CEO. “The new LTT rebate will put more money in the pockets of first-time home buyers and help young families achieve their dreams of home ownership. For home buyers in places like Peterborough, it means they’ll pay no provincial tax on their first purchase. These savings benefit both the buyer and our local economies.”
According to research prepared by Altus Group Economics, an improved LTT rebate will create 5,000 jobs and $268 million in economic spinoffs in the province. Research shows that home ownership contributes to families being happier and healthier, and enjoying improvements in their children’s school performance.