What are OHOSP and LTT?

LTT only applies for those who made OHOSP Contributions Made Prior to December 31, 1993, Under the plan, persons who have not owned a home are able to contribute up to $2,000 per year to the plan and receive a tax credit based on their total family income. Credits are available for single annual incomes below $40,000 and family incomes below $80,000. Unfortunately the Land Transfer Tax Refund Program has not been extended beyond December 31, 1993. Anyone who has not contributed to OHOSP by that date will not be eligible for a refund when they purchase their first home. Those that did contribute before that date will be eligible for a refund according to the following table.

The forms for claiming the refund for LTT are available at the land registry office, the financial institution where it was opened, or your lawyer’s office, and may be claimed immediately after closing.

If you have any questions about the OHOSP program, please call the Ministry of Finance’s Information Centre toll free:

• All areas of Ontario: 1-800-263-7965
• French language inquiries: 1-800-668-5821
• Teletypewriter (TTY): 1-800-263-7776

Is it true that I can get a land transfer tax refund?

To help first time buyers of newly-built homes and promote job creation in the housing industry the Government of Ontario in its 1996 Budget, May 7, 1996, announced a refund of land transfer tax paid on the purchase of the home, up to a maximum of $1,725.

How do I know if I qualify for a LTT refund?

• You must be at least 18 years old.
• The refund applies to any newly-built home where the sale closes after May 7, 1996. The agreement of purchase and sale have to be completed on or before March 31, 1999, the purchaser must take occupancy on or before December 31, 1999 and the deed must be registered on or before December 31, 2000.
• You cannot have previously owned a home, or an interest in a home, anywhere.
• If you have a spouse, he or she cannot have owned a home, or an interest in a home, anywhere.
• You cannot have received an OHOSP-based refund of land transfer tax.

How much is the LTT refund?

The amount of the refund will be the entire amount of tax paid or payable, up to a maximum of $1,725. If you own less than 100% interest in the new home, the amount will be reduced and calculated according to the amount of your interest in the new home. For example: If you own 100% of your new home and you paid $250,000, the amount of land transfer tax payable is $2,225. You will receive a refund of $1,725 (the maximum). If however, you owned 50% interest in your new home, the amount is 50% of $1,725, or $862.50.

How do I get the LTT refund?

You can receive a same-day refund of the land transfer tax by filing an affidavit for refund at the land registry office at the time of registration. If you do not apply for a refund at the time of registration or require more information on the LTT Rebate program, contact the Ministry of Finance’s toll-free information line:

• All areas of Ontario: 1-800-263-7965
• French language inquiries: 1-800-668-5821
• Teletypewriter (TTY): 1-800-263-7776

How much will the Land Transfer Tax be?

Here are some examples of LTT Payable.