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.
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