Property transfer tax & First time home buyer

When you purchase or gain an interest in property that is registered at the Land Title Office, you are responsible for paying property transfer tax.

You pay the tax based on the fair market value of the property at the date of registration, unless you qualify for aexemption.

Property transfer tax should not be confused with annual property taxes. Annual property taxes are paid yearly for each property you own or have a registered interest in to fund services in your area.

 The tax is charged at a rate of 1% for the first $200,000 and 2% for the portion of the fair market value that is greater than $200,000. For example, if the fair market value of a property is $250,000, the tax paid is $3,000.

The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.

If one or more of the purchasers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.

For example, if you qualify and purchase a property with a fair market value of $400,000 with a person that doesn’t qualify you would still qualify. If you owned a 60% interest in the property, 60% of the tax amount would be eligible for the exemption.

For more details please visit The First Time Home Buyers' Program.