First Time Home Buyers / Land Transfer Tax

by Oldham Law

It is fairly common knowledge that first time homebuyers in Ontario do not have to pay land transfer tax. What is not as commonly known, is that if you owned a home with a prior spouse, but end that relationship and meet the legal definition of a spouse with a new partner, then you can still qualify to be exempt from land transfer tax. When you purchase, you will be required to swear an affidavit confirming the purchase of your prior home, the end of the prior relationship and status of your new relationship (being spouses). Obviously, your new spouse must be a first time home buyer for this all to work. Knowing this information can save you hundreds or even thousands of dollars in land transfer tax.