How may title be taken?

Title can be taken in three distinct ways:

  1. Sole owner – when only one person is taking title

  2. Joint tenants – when two people take title with 50-50% interest in the home

    • Right of survivorship: upon the death of one title holder, the other joint tenant automatically becomes sole owner of the property.

    • This option avoids the home falling under the Estate Administration and the applicable Estate Administration Tax, though, there are other tax implications which may need to be considered.

  3. Tenants-in-common – when two or more people are taking title

    • There is no right of survivorship: upon the death of a title holder, such title holder’s interest in the property goes to his/her estate and is dealt with according to his/her Will or Succession Law Reform Act if there is no Will.

    • The deceased interest in the property will fall under Estate Administration and the Estate Administration Tax will be payable on the home.

    • Interest in the property does not have to be distributed equally among the tenants-in-common (one party may hold 99% interest, while the other party may only hold 1% interest).

The decision of who should go on title should be based on many things including, but not limited to, relationship status (married, common-law, single, etc.), financial situation, tax implications, and estate planning.

First time home buyer

Do I qualify to receive the land transfer tax rebate for first-time homebuyers?

Who qualifies as a first time home buyer?

  1. The purchaser is at least 18 years of age;

  2. The purchaser must occupy the home as his/her principal residence no later than nine months after the date of the conveyance or disposition;

  3. The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time;

  4. If the purchaser has a spouse, the spouse* cannot have owned a home, nor had any ownership interest in a home, anywhere in the world while he/she was the purchaser's spouse;

  5. The purchaser cannot have previously received an Ontario Home Ownership Savings Plan (OHOSP)-based refund of land transfer tax.

*Definition of spouse:

Married couple, or non-married couple who have cohabitated 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.

What is the land transfer tax rebate for first time home buyers?

For a property located in Ontario, if the purchaser is a first time home buyer of a newly constructed or resale residential home, a rebate of $2,000.00 is available.

There is additional land transfer tax for properties located in Toronto. For a property located in Toronto, first time home buyers are exempt from paying land transfer tax on the first $400,000.00. If the purchase price is above $400,000.00, the first time home buyer will have receive a rebate of $3,725.00, but will have to pay the land transfer tax on the difference.