When you buy a home in Ontario the land transfer tax is the most significant closing cost you are required to pay. Calculating the amount of tax you have to pay is pretty simple math so I am not going to teach you how to do it. If you want to see the land transfer tax rates for Ontario you can visit http://www.rev.gov.on.ca/en/tax/ltt/
By the way if you want to buy a home in Toronto you have to pay an extra municipal land transfer tax. You can figure out how much that will be by visiting http://www.toronto.ca/taxes/mltt.htm
So now that you know you are going to be responsible for thousands of dollars of taxes, how do we avoid these taxes? First time buyers you are in luck because you are eligible for a rebate for a majority of the tax. First time buyers are eligible for the following rebates:
- A maximum of $2000 refund for the Ontario Land Transfer Tax.
- A maximum of $3725 refund for the Toronto Municipal Land Transfer Tax.
If you know of someone that is looking to purchase their first home, share this article so they can learn how to get a refund on their taxes. If you are interested in receiving a free CD with loads of information on buying a home, fill in the form at the bottom of the page and I will send you one. Live with passion!
Frank
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