Does every homebuyer have to pay land transfer tax?

March 2021

Legal Moment on FM96

Transcript

[phone ringing]
Receptionist: Cohen Highley
Announcer: And now the Cohen Highley Legal Moment on FM96.
Announcer: I’m with Megan Jenner from Cohen Highley Lawyers.  Does every homebuyer have to pay land transfer tax?
Megan Jenner For first time homebuyers, there’s a rebate of up to $4,000 that you may qualify for.
Announcer: How do you qualify?
Megan Jenner There are a number of stipulations but to be considered a first time homebuyer.  You cannot have owned a qualifying home anywhere in the world.  There are also rules about spouses owning eligible homes to consider.
Announcer: Does the $4,000 rebate cover all the land transfer tax?
Megan Jenner: Land transfer tax is based on the purchase price of the property.  The higher the price, the more tax.  While calculating the tax is a bit complicated, the average home price in London, which is currently about $600,000, would incur land transfer tax of about eight and a half thousand dollars.  So in that example, the land transfer tax rebate would cover almost half of the amount.
Announcer: Thanks Megan. This has been the Cohen Highley Legal Moment.
[Music]
Singers: Cohen Highley, we’re listening.  cohenhighley.com

Author

Megan practices in the corporate/commercial, real estate and estate planning department. Megan obtained her Juris Doctor from the University of Windsor, and was called to the Ontario Bar in 2019. Prior to her call to the Bar, Megan was both a summer student and completed her articles at Cohen Highley, where she gained experience in… More →