Pamela Vasiliu
Sales Representative
pvasiliu@remax.net

RE/MAX Professionals Inc.
Brokerage
Independently owned and operated.

Date: Tuesday November the 21st, 2017 
416-236-1241

 

   

Ontario increases tax refund for first-time home buyers

November 15, 2016

Ontario will refund first-time home buyers up to $4,000 from the land-transfer tax, a small step to ease the pain of the exploding Toronto housing market.

The may be an attempt for Liberals to obtain some goodwill among younger middle-class voters, but observers dismissed it as a marginal move that will not really make it easier to break into the market. The refund takes effect Jan. 1, 2017.

The up-to-$4,000 refund will effectively remove the land-transfer tax from the first $368,000 of a home price for anyone buying their first home. First-time home buyers are currently eligible for an up-to-$2,000 refund.

The average price of a home in Toronto and area in October was $762,975, according to the Toronto Real Estate Board. Prices ranged from an average of $429,407 for a condominium to more than $1-million for a detached house.

The government will pay for the measure by jacking up the land-transfer tax on other buyers. Any portion of a home price over $2-million will be subject to a tax rate of 2.5 per cent, up from 2 per cent; the rate on a portion of the purchase price of non-home properties – such as commercial buildings – over $400,000 will rise from 1.5 per cent to 2 per cent.

Market experts said $4,000 is too little to have much effect on a home buyer’s purchasing decisions.

 

The economic update also reiterated the Liberals’ promise to balance the budget next year, despite a warning last week from the province’s financial accountability office that the government cannot reach balance without either restraining spending or finding more revenue.

The province’s real estate lobby, however, heaved a sigh of relief. Realtors had urged the government to cut the land-transfer tax instead of taking steps to cool the market, which could have eaten into their business.

 

 


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