You must be a “first time home-buyer” in order to receive either the Land Transfer Tax (LTT) or the RRSP rebate. Seems simple enough. But did you know that each rebate defines “first time home-buyer” differently, and you may in-fact qualify for one rebate, but not the other?
The Land Transfer Tax Rebate states that you are a first time home-buyer if:
“You are at least 18 years of age, you have not owned a home or an interest in a home anywhere in the world, and your spouse has not owned a home or interest in a home, anywhere in the world.
Whereas the RRSP Rebate states:
“You are considered a first-time home buyer if, in the four year period, you did not occupy a home that you or your current spouse or common-law partner owned. Note: Even if you or your spouse or common-law partner has previously owned a home, you may still be considered a first-time home buyer. If you have a spouse or common-law partner, it is possible that only one of you is a first-time home buyer.”
Additional factors, such as your spousal status, citizenship, and intended usage of the property are also taken into consideration, and in some cases may restrict or reinstate your eligibility to claim the applicable rebate. Accordingly, eligibility for the Land Transfer Tax Rebate should be discussed in detail with your real estate lawyer, and Registered Retirement Savings Plan Rebate eligibility with your financial representative, to ensure you meet all requirements as a “First Time Home-Buyer. Our office in Ottawa, Ontario would be happy to help you with your home purchase and help you navigate through the home buying process.
For further information on the Land Transfer Tax Rebate, please visit:
https://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html
And for further information on the RRSP Rebate, visit:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html