Program has been extended

First-time buyers of newly constructed homes will be pleased to learn that Land Transfer Tax Refund program has been extended, and, the amount of refund available has also been increased.

Under the new legislation, LTT refunds are available to first-time home buyers who satisfy various criteria, including:
   • The agreement of purchase and sale must be signed before March 31, 2000;
   • The home being purchased must be a newly constructed home;
   • The home must be occupied by the purchasers as their principal residence by Dec. 31, 2000; and,
   • You must never have owned a home anywhere in the world (be aware, the government has prodided quite a wide definition of "home").

Given the increase in the refund available, LTT will only be payable on any qualifying home with a value greater than $227,500 as the LTT on that home will be greater than the maximum refund available of $2,000.

For example, if you purchase a $300,000 home, the LTT payable would be $2,975 - however, assuming you qualify for the LTT refund, the actual amount of LTT payable would be $975 ($2,975 minus $2,000) representing the excess LTT payable after deducting the maximum refund available.