Sean Kelly Law

Common Questions

Q: How do I know if I qualify for the First Time Home Buyer Rebate?

A: To qualify for the Ontario Land Transfer Tax Rebate you must meet the following criteria:

  1. You must be 18 years of age or older,
  2. You must be a Canadian citizen or permanent resident of Canada,
  3. You must occupy the home within 9 months of purchasing it,
  4. You cannot have owned a home before anywhere in the world, and
  5. If you have a spouse, they cannot have owned a home during the time they have been your spouse

For more information visit The Ontario Ministry of Finance website

Q: What is Land Transfer Tax and how do I calculate it?

A: The Ontario Land Transfer Tax is a tax payable to the Government of Ontario for the purchase of new property or land.

The current tax rates are as follows:

Consideration up to $55,000: 0.5%

Consideration between $55,001 and $250,000: 1.0%

Consideration between $250,001 and $400,000: 1.5%

Consideration $400,001 and over: 2.0%

Consideration over $2,000,000, where the land contains one or two single family residences: 2.5%

Example: For the purchase of a property in which the value of the consideration equals $400,000:

Step 1: Multiply $55,000 by 0.5% (55,000 × 0.005) = $275

Step 2: Multiply the amount exceeding $55,000 up to $250,000 by 1.0% (195,000 × 0.01) = $1,950

Step 3: Multiply the amount exceeding $250,000 up to $400,000 by 1.5% (150,000 × 0.015) = $2,250

Total land transfer tax payable = $4,475

For a simple to use Land Transfer Tax calculator please follow the link below:

Q: What is mortgage loan insurance and when is it required?

A: If you are purchasing a home with a down payment of less than 20% you will need mortgage loan insurance. Mortgage loan insurance is there to protect the lender against default in payments by the homebuyer and helps ensure you get a reasonable interest rate with even a smaller down payment.

For further information visit the Canada Mortgage and Housing Corporation website

Q: What is title insurance?

A: Title insurance protects your ownership interest against losses incurred as a result of many types of undetected or unknown defects that affect the title of your property. Such defects include but not limited to fraud, forgery, survey errors, and against the risk of outstanding levies charged against the property (ie: tax, water, or hydro arrears from a previous owner).

For further information on the benefits of title insurance please visit the Financial Services Commission of Ontario website

Q: Do I need to notify utility companies of the purchase or sale of my property?

A: If you are purchasing a new property, we will setup your property tax, water, and sewer accounts. The City/Town may charge you a standard setup fee on your first bill which isn’t included in our costs.

If you are selling your property, we will notify the City/Town that you are no longer the owner(s) upon closing.

Due to security restrictions you will be responsible for the setup of your own utility accounts if you are purchasing a new property and the cancellation of your utility accounts if you are a selling a property. You can contact Hydro Ottawa at 613-738-6400 or online at and Enbridge at 1-877-362-7434 or online at

Q: I can’t find the answer to my question, who should I contact?

A: Give us a call at 613-903-7227 or email at and we will be happy to answer any more questions you may have.

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