Are you buying a home? Naturally, you will pay several charges in addition to the price you paid for the home. An additional expense is the land transfer tax, which residents have to pay. It is always the buyer who pays the land transfer tax when purchasing a property. Let’s learn more.
What is land transfer tax?
The land transfer tax or welcome tax was introduced in most Canadian provinces during the 1970s and 1980s. It is paid to the province or municipality, in some cases, only by the buyer of the property.
In some provinces, first-time homebuyers are eligible for a refund of all or part of the land transfer tax.
What does this mean for first time home buyers?
First time home buyers are eligible for land transfer tax exemption. These buyers who pay a purchase price of more than $368,333 will receive a $4,000 tax exemption and pay whatever balance is due on the balance of land transfer tax.
As First time home buyer, you must be
1 – 18 years of age or older
2 – Be a Canadian citizen or a permanent resident of Canada
3 – Stay in the property within nine months of buying it
4 – Have never owned any property before
5 – Apply for exemption within 18 months of purchasing the property
Connect with a reliable broker service when you need to know more about the First Time Home Buyer Land Transfer Tax.
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