A first-time buyer purchases a $450,000 home in Ottawa, outside the City of Toronto. Which land transfer tax relief can they claim?
Correct Answer
C) The Ontario refund of up to $4,000 only
The Ontario first-time purchaser refund in s. 9.2 of the Land Transfer Tax Act is capped at $4,000 and has no price ceiling. Toronto's rebate of up to $4,475 belongs to the City of Toronto's municipal land transfer tax, which applies to property in the City of Toronto, so an Ottawa purchase gets the provincial refund alone.
Why This Is the Correct Answer
The buyer qualifies for the Ontario refund of up to $4,000 under s. 9.2 of the Land Transfer Tax Act, which has no price limit. The City of Toronto's rebate reduces only Toronto's municipal land transfer tax, which does not apply to an Ottawa home.
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