When ownership of a property is changed the province charges what is called a land transfer tax. It is paid by the purchaser when property is bought. Check with your lawyer whenever you are making changes to title of real estate property. Do this before you make the changes so you know what the ramifications are.
Details for Ontario Land Transfer Tax (LTT) 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 +2.0% on the amount in excess of $400,000
How to calculate the Land Transfer Tax. If you are purchasing a house at $200,000.00 it would be calculated like this:
On the first $55,000.00 X 0.5% = $275.00 On the balance $145,000.00 X 1.0% = $1450.00
Totaling the two together would make $1725.00.
OHOSP
Ontarians registered in the Ontario Home Ownership Savings Plan (OHOSP) before December 31, 1993 still qualify for a rebate of the Land Transfer Tax.
FIRST-TIME BUYERS - The main points are listed below but please contact your lawyer for more details. You cannot have received an OHOSP based refund of the Land Transfer Tax.
Buyers with an agreement to purchase a house with a possession date before December 31, 2000 qualify for the rebate. The land transfer must be registered before December 31, 2001. First-time buyers who purchase a newly constructed house prior to March 31, 2000 will receive a rebate of the Land Transfer Tax. You do not qualify for the rebate if you, or your spouse, have previously owned a house or an interest in a house.
The maximum rebate is $1,725 - this is equivalent to the Land Transfer Tax on a $200,000 house.
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