Real Estate

Land Transfer Rebate and HBP

  • Last Updated:
  • Jan 12th, 2020 5:57 pm
[OP]
Newbie
Dec 21, 2019
11 posts

Land Transfer Rebate and HBP

Hi. If we do not claim the land transfer tax and use the HBP (RRSP) for our “first” time home purchase due to it being an investment property, can we still claim the land transfer tax and use the HBP (RRSP) during our second (technically) first principle home? Thanks.
7 replies
Sr. Member
Feb 19, 2019
601 posts
606 upvotes
Stouffville ON
Yes, you can use the HBP.
No you will not qualify for land transfer first time home buyer tax credit.
Full Time and Full Service Realtor
[OP]
Newbie
Dec 21, 2019
11 posts
senasena wrote: Yes, you can use the HBP.
No you will not qualify for land transfer first time home buyer tax credit.
Thanks!
Deal Addict
Aug 30, 2011
3389 posts
1107 upvotes
Ottawa
Just to clarify, the house you want to use the HBP for is one you will be living in?
[OP]
Newbie
Dec 21, 2019
11 posts
OttawaGardener wrote: Just to clarify, the house you want to use the HBP for is one you will be living in?
Yes. Scenario was first purchase being investment rental. Second purchase being principal residence that will be lived in. No land transfer rebate and no HBP used for first purchase. Land transfer rebate and HBP used for second purchase instead.

So I guess I wouldn’t be able to use the land transfer rebate for the second purchase even though the first purchase isn’t purchased as a principal residence that I’ll be living in and the second purchase would be a principal residence that I will be living in?
Deal Addict
Aug 30, 2011
3389 posts
1107 upvotes
Ottawa
Emily0123 wrote: Yes. Scenario was first purchase being investment rental. Second purchase being principal residence that will be lived in. No land transfer rebate and no HBP used for first purchase. Land transfer rebate and HBP used for second purchase instead.

So I guess I wouldn’t be able to use the land transfer rebate for the second purchase even though the first purchase isn’t purchased as a principal residence that I’ll be living in and the second purchase would be a principal residence that I will be living in?
Correct. (I had to look it up, since I'm familiar with the CRA rules, but not Ontario's)
[OP]
Newbie
Dec 21, 2019
11 posts
OttawaGardener wrote: Correct. (I had to look it up, since I'm familiar with the CRA rules, but not Ontario's)
I guess I’ll buy the principal residence first and the investment property after then. Thanks!

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