• The 1996 Ontario Budget announced a special one-year provision to the LTT that was
  renewed every year and is now a permanent program.
  

• FIRST-TIME BUYERS who purchase a NEWLY CONSTRUCTED HOME will receive a rebate of the LTT. All other buyers will continue to pay the full applicable tax.
  

• The maximum rebate is $2000. If an individual owns less than 100% interest in the newlybuilt home, the amount of the rebate would be reduced and calculated according to the amount of interest in the home.
  

• A rebate of $2,000 is equivalent to the LTT payable on a purchase price of $227,500 (net of GST).
  

• Only individuals who are at least 18 years of age, have not (or spouse) previously owned an interest in a home anywhere qualify for the rebate.
  

• Individuals who have received an Ontario Home Ownership Savings Plan (OHOSP) based refund of the LTT do not qualify.
  

• A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another. The tax is a percentage of the value of the property based on a graduated scale:
  

• 0.5% on amounts up to and including $55,000;
  

• +1.0% on the amount exceeding $55,000 up to and including $250,000;
  

• +1.5% on amounts above $250,000 up to and including $400,000 for residential /
  +1.5% on the amount in excess of $250,000 for business properties;
  

• +2.0% of the amount in excess of $400,000. [residential only]
  

• For more information call the Ontario Finance Ministry at 1-800-263-7965.

 

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