OHOSP – Ontario Home Ownership Savings Plan

Under OHOSP, the Ontario Land Transfer Tax has to be paid on immediate completion of the house purchase. The application for a refund must be made by the purchaser upon the deal closing. As per the Ontario Law, if your purchase plan was set before 1 January 1994 and your house’s purchase price is below $200,000, you are eligible for a complete refund of the Land Transfer Tax applicable on the purchase price. This process is not valid for the OHOSP’s that are availed after 1 January 1994. Similarly, in the Toronto area, you can receive a full tax refund if the plan setup date is before the 1st of January 1994. Here, if the purchase price of your property is below the $150,000 you receive a full amount refund of Land Transfer Tax. On the other hand, if the purchase price is $175,000 you are entitled to a 50% amount. No land transfer tax refund is available in case the price of your home is greater than $200,000.