Ontario government gives tax break to London’s first-time home buyers

As of January 1, Ontario’s first-time home buyers are eligible to receive a $4,000 land transfer tax rebate, an increase of $2,000. Today, MPP for London North Centre the Honourable Deb Matthews, together with MPP for Etobicoke Centre Yvan Baker and past-president of the London St. Thomas Association of REALTORS® (LSTAR) Carl Vandergoot, gathered at the LSTAR office to promote the new rebate, which protects local home buyers from paying any tax on their first home.

With the average price of a home in the cities of London and St. Thomas at $279,000, the new rebate exempts a buyer from paying the tax altogether. A new website developed by the Ontario Real Estate Association (OREA) – www.FirstHomeRebate.ca – allows first-time home buyers to calculate exactly how much rebate they qualify for. The tax is calculated on a graduated scale based on a property’s purchase price and is paid at closing.

According to research prepared by Altus Group Economics, an improved LTT rebate will create 5,000 jobs and $268 million in economic spinoffs in the province. Research shows that home ownership contributes to families being happier and healthier, and enjoying improvements in their children’s school performance.

Quotes

“This tax break will go a long way towards making home ownership more affordable for London’s first-time buyers. The extra money can be put towards a down payment, closing costs or purchasing appliances for a new home, which benefits both the buyer and our local economy.”

-Jim Smith, President, London St. Thomas Association of REALTORS®

“I’m pleased to celebrate, with the help of OREA, the positive changes our government is making to the Land Transfer Tax rebate. This increased rebate will make it easier for families in London and across Ontario to purchase their first home. I’m proud our government is taking action to support Ontarians in their everyday lives”

-Deb Matthews, MPP for London North Centre and Deputy Premier

“Many people have benefited from recent increases in the value of their homes but too many young families and others looking to buy their first home, are struggling to get into the housing market. This measure will help more young families across Ontario realize their dreams of becoming homeowners.”

-Yvan Baker, Member of Provincial Parliament for Etobicoke Centre, Parliamentary Assistant to the Minister Responsible for Digital Government, Parliamentary Assistant to the Minister of Finance