ANNOUNCER: I’m with Megan Jenner from Cohen Highley Lawyers. Does every home buyer have to pay land transfer tax?
MEGAN: For first time home buyers there’s a rebate of up to $4,000 that you may qualify for.
ANNOUNCER: How do you qualify?
MEGAN: There are a number of stipulations, but to be considered a first time home buyer, 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 $4000 rebate cover all the land transfer tax?
MEGAN: 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 8 and a half thousand dollars. So, in that example, the land transfer tax rebate would cover almost half of the amount.
