What You Need To Know About Land Transfer Tax In Brampton?

land transfer tax refund for first-time home buyers blog in brampton by Catherine nacar top real estate agent in brampton

When buying a home in Brampton, you have to take care of a number of closing costs. One of them is land transfer tax, which is a tax you pay the government after purchasing a property. Those who live in the City of Toronto have to pay double land transfer tax. But if you purchase a house in Brampton, you don’t have to. If you’re a first-time home buyer, I strongly recommend buying outside of Toronto, so you don’t have to pay double the amount. 

How much land transfer do I pay in Brampton?

The land transfer tax you’ll pay depends on the purchase price of the resale property in Brampton. 

First $55,000 X 0.5 %

On $55,000 to $250,000 X 1 %

On $250,001 to $400,000 X 1.5 %

Over $400,001 to $2,000,000 X 2.0 % 

Over $2,000,000 X 2.5 % 

When buying land and then constructing a house on it, you have to pay land transfer tax on both – total cost of the plot AND cost of construction contract. 

Am I eligible for land transfer tax rebate as a first-time home buyer in Brampton?

Yes, you are eligible for the Ontario tax rebate if it’s your first-time buying a house in Canada, not just Brampton. You won’t be eligible for the refund if you already own a house in another city or province. For property purchases after 2017, you are exempt from paying tax on the first $368,000 and can receive up to $4,000 as a refund on the remaining amount. You must apply for the refund within 18 months of purchasing a house. 

What’s the eligibility criteria? 

To qualify for the rebate, you must qualify to be a first-time home buyer in Canada:

– should be 18 years or older

– Canadian permanent resident or citizen

– your purchased property should be your principal residence

– you haven’t owned a home or own stakes anywhere in Canada or the world

– your spouse/common law partner shouldn’t have owned a home when you were together 

Can I still get a refund if my partner isn’t a first-time home buyer? 

Depending on how much stakes you own, you are eligible for a partial refund. For example, you and your partner own equally, so you can get up to 50% of the refund. 

How do I apply for the land transfer tax refund program?

You can claim the refund once the property in Brampton is registered under your name or at a later date but within 18 months of move-in. 

To claim the refund, you’ll have to submit:

  1. Ontario Land Transfer Tax Return Affidavit
  2. Ontario Land Transfer Tax Affidavit
  3. Transfer or Deed 

By submitting the documents at the time of purchase, you only have to pay the remaining tax amount. However, if you aren’t currently eligible but plan on becoming one within the next 18 months, you’ll have to pay the full tax amount at the time of purchase and claim the refund afterwards. 

To claim the refund afterwards, you’ll need to submit your documents to Ontario Ministry of Finance:

  1. All the documents mentioned above
  2. Proof of Occupancy (Bills, Credit Card Statements, ID)
  3. Proof of Citizenship or Permanent Residence

Have any questions related to land transfer tax in Brampton? Send me an email at cnacar.realtor@gmail.com or call at +1 905 867 4828 and I’ll be happy to answer them.

Reset password

Enter your email address and we will send you a link to change your password.