When transferring residential property in Ontario a Land Transfer Tax is charged, based on the purchase price of the property. There is a reduction of the Tax for HST, if the property purchased is a newly built home. The Ontario land transfer tax is payable by the purchaser when the property is Transferred and the Deed of Land Registered.
The City of Toronto (416 telephone area code, bounded by Steeles on the North, Western boundary of Etobicoke, Eastern boundary of Scarborough and Lake Ontario’s shoreline on the South) has an additional Land Transfer Tax.
To help offset the unwelcome cost, Ontario, British Columbia, Prince Edward Island and the City of Toronto offer land transfer tax rebates for first-time homebuyers.