Land Transfer Tax – Part 2

If my spouse is a first time homebuyer, do we qualify for the Land Transfer Tax Refund?

We are often asked questions about the provincial and municipal land transfer taxes. The most common question is, of course, “How much land transfer tax will I owe?”. You can easily get an answer by using the our instant calculator on our Quote page.

A little less common, but perhaps more interesting, is the following question: “My partner and I are buying a home together. I have owned a home before but he hasn’t. Does he qualify for the first-time buyers land transfer tax refund?”.

The answer, as provided by the Ontario Ministry of Finance’s website, is set out below.

Your partner’s eligibility for a refund depends on whether you are “spouses” as defined in section 29 of the Family Law Act (Ontario).

For land transfer tax purposes, “spouse” means either of two persons who are married to each other, or who are not married to each other and who have cohabited:

  • continuously for a period of not less than three years; or
  • in a relationship of some permanence, if they are the natural or adoptive parents of a child.

If you are not spouses, then your partner may claim a refund based on his/her interest acquired in the home. If you are “spouses”, your partner may claim a refund up to the maximum, as long as you did not own a home while you were each other’s “spouse.” You can use our Quote Generator to determine the maximum refund available for your purchase or you can contact us and we’ll get right back to you.

If you did own the home while you were each other’s “spouse”, then your partner does not qualify for a refund even if you did not live in the house together.

Please contact Down & Company if you have any questions regarding land transfer tax or other issues relating to the purchase, sale or refinancing of a property in the Greater Toronto Area.

Painting by Katerina Podolak · Rain in Camden Town