Land Transfer Tax -Does my first time my first-time buyer spouse qualify for the first time buyers refund on land transfer tax?

Wednesday Jul 20th, 2016

Share

One of my great client ask me this question this week.  "Cleona,  I own my condo which I purchased before I got married, but my spouse is a first time buyer, does she qualify for a refund on the land transfer tax."

Here's the information I found on the Ministry of Finance Website.

http://www.fin.gov.on.ca/en/tax/ltt/faq_newhome.html

Your partner's eligibility for a refund depends on whether you are spouses as defined in section 29 of the Family Law Act.

For land transfer tax purposes, spouse means either of two persons who are married to each other, or who are not married to each other and have cohabited:

  • continuously for a period of not less than three years; or
  • in a relationship of some permanence, if they are the natural or adoptive parents of a child. 
    If you are not spouses, then your partner may claim a refund based on his/her interest acquired in the home.

If you are not spouses, then your partner may claim a refund based on his interest acquired in the home.

If you are spouses, your partner may claim a refund up to the maximum of $2,000 (you can claim the refund for your interest and your partner’s interest), as long as you did not own a home while you were each other's spouse. If you did own the home while you were spouses of each other, then your partner does not qualify for a refund even if you did not live in the house together.

Hope this helps.  Let the house search begin.