Anyone in Ontario who’s looking to buy their first home will become eligible for a rebate of up to $4,000 in the land-transfer tax effect January 1, 2017.
The government, which made the announcement in its fall economic statement, says while doubling the maximum tax rebate to first-time buyers, it will increase the same tax on luxury homes over $2-million.
Officials say the hike from 2% to 2.5% in tax will mean about $105-million more annually in revenue, which will go toward paying for the increased rebate.
The rising cost of housing has helped provincial coffers as land transfer tax revenue is up 15% from its budget forecast of last February.
The government’s expected to take in $2.3-billion in land-transfer tax this fiscal year – $314-million more than predicted.
Finance Minister Charles Sousa also announced $140-million more in hospital spending to ”reduce wait times and improve services,” and $65.5-million more to create 3,400 extra child care spaces.
Sousa also reaffirmed his forecast that the current deficit for 2016-17 will be $4.3-billion and repeated plans to bring in a balanced budget in 2017-18.
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