First-time buyer land transfer tax rebate increasing to $4,000
In the 2016 Fall Economic Statement, the Government of Ontario announced that the Land Transfer Tax rebate is increasing from $2,000 to $4,000. This will significantly decrease the closing costs for first-time buyers.
Here’s an example to show you the savings: If you were to purchase a Bracebridge home for $367,990, then you would owe approximately $3,994 in Ontario Land Transfer Tax. The first-time buyer rebate was saving you $2,000, so you were still paying around $1,994 at the time of closing. With the increased rebate, you wouldn’t pay any Ontario Land Transfer Tax at all for a unit of this price.
Many first-time buyers struggle to save for a down payment; especially up here in Muskoka, they struggle so much that they often forget about or neglect the closing costs. To stay on the safe side, you should have about 3% of the purchase price saved for closings costs.
