BUYER'S GUIDE

In Ontario, to qualify as a first-time home buyer, you must never have owned a home anywhere in the world, whether individually or jointly. This includes any ownership stake, so if you inherit or receive a property as a gift, you will not be considered a first-time home buyer.

• Recent mortgage changes to take effect December 15th 2024.
• Ontario Land Transfer Tax Refund.
• First-Time Home Buyers’ Plan.
• First-Time Home Buyers’ Tax Credit.
  
  

1. If you haven’t already done so, please provide us with your Mortgage brokers contact information. We will send them a copy of the Accepted Agreement of Purchase and Sale and the MLS Listing. This information is required for the Mortgage approval process.

2. Decide upon a Lawyer and email us the details including the Lawyer’s name, phone and email address. Our Head Office will also send a copy of all documents to your Lawyer. If you have purchased a condominium, please provide your Lawyer’s information as soon as possible so we can provide them with a copy of the Status Certificate for review. We will happily refer you to the names of some Lawyers, if required. 

3. You will need to arrange a meeting with your Mortgage Broker to finalize the terms of your mortgage and to sign the mortgage commitment provided by the bank. Your mortgage broker/bank will send the necessary paperwork to your Lawyer prior to closing.

4. We will need to satisfy any conditions in the timeline outlined in the Agreement of Purchase and Sale. These conditions are fulfilled once we have signed off on a Notice of Fulfillment or Waiver of those conditions. Once this step is done, this deal becomes firm and binding and we can move onto the next steps in this guideline.

Mortgage amortizations of 30 years will be available for all first-time home buyers as well as for any new construction purchase. By lengthening the mortgage amortization by 5 years, the monthly mortgage payments will be reduced making housing more affordable. 

The maximum purchase price for an insured mortgage will also increase to $1.5 million from the current $1 million (a borrower must take out mortgage insurance when putting less than 20% down on their home purchase).

What is Land Transfer Tax?

In Ontario, you must pay a fee called the Land Transfer Tax when you are purchasing a home. The amount of tax is based on a percentage of the price of the home you are purchasing.

• Up to $55,000 X 0.5% of total property value
• From $55,000 to $250,000 X 1% of total property value
• From $250,000 to $400,000 X 1.5% of total property value
• From $400,000 up X 2% of total property value

The City of Toronto levies an additional LTT on Toronto real estate in addition to the provincial rate.

How Much is the Land Transfer Tax Refund?

The Ontario government is offering a Tax Refund for first-time home buyers. If you qualify for this incentive, you could receive a refund of up to $4,000. Additionally, if you are buying a home in the City of Toronto, you may be eligible for an extra refund of up to $4,475.