First-time home buyers in Ontario may be getting a little bit of a break soon.
During the 2016 Ontario Economic Outlook and Fiscal Review, Finance Minister Charles Sousa proposed to double the maximum Land Transfer Tax refund for eligible first-time homebuyers to $4,000.
The increase would come into effect on January 1, 2017, and would mean that homebuyers wouldn’t pay Land Transfer Tax on the first $368,000 of the cost of their first home.
In order to make housing more affordable, the province is also freezing property tax on apartment buildings, which affects rental market affordability.
To balance the revenue from the proposed increased Land Transfer Tax, the government is proposing to increase the tax rates on properties above $2 million to 2.5 per cent from 2 per cent. As for properties above $400,000, the increase would go to 2 per cent from 1.5 per cent.
According to the review, the government is also proposing to restrict eligibility for the Land Transfer Tax refund for first-time homebuyers to Canadian citizens and permanent residents as of January 1, 2017. First-time homebuyers who become Canadian citizens or permanent residents within 18 months of purchasing a home could also apply for the refund.
Finally, some good housing news, no matter how small.