1st time home buyer (rebate fee rejected because of wife house abroad)?

[mauro80]

Hi everyone,

Hope you can help me with a situation I recently went through while buying a unit in Toronto.

Some detail first. I’m Permanent Resident and I’m married (wife is PR too). Marriage happened 4 years ago in Europe.

My wife has a house in Europe on her own. It is her own property; and for the European law I have no title and interest into it. (we’ll get to this aspect soon because it’s crucial).


In order to benefit the first time home buyer rebate fee you need be NOT owner of any house in the world.

The house in Canada is mine. I’m the only owner. The mortgage of the Canadian house is only in my name.

The day of the purchase lawyer asked me if I had a house anywhere in the world (not just Canada). I say NO.

He then turned to my wife and asked if she had a house in the world (not just Canada). She says YES.


Lawyer turns to me and say to me (long story short): “Since your wife has a place somewhere in the world, you are not eligible to be a first time home buyer. Please provide extra 8.500 $ (!!!) for this”.


Didn’t have time to argue or debate it in that circumstance. The law is the law. And it says: https://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html

Seems clear that the fact that the wife has house (even if it is not in Canada) makes me not eligible for the rebate.


BUT…


There is a thing that worth to be investigated for which I ask some support here.

Ok… In a nutshell: for the Ontario law my wife has a house. Me and my wife are ONE. It means I already have a house. I’m not a first time home buyer.


In Europe when you get married. AT THE ACT OF THE SIGNATURE OF MARRIAGE – both spouses are requested (mandatory!) to state and sign weather their properties will be separated or in common.

It’s some sort of pre-marriage agreement.

Me and my wife opted for Separation of properties and we signed a document that is requested by law.

In other words and in short: I have NO title and NO interest in my wife house in Europe. That makes me not eligible to claim her house as my property; to the enforce of European law. This is a fact.


Now… Ontario says that my wife’s house is also mine so I’m not a first time home buyer. But this is NOT the case.

I legally have no interest and no title on my wife house. We are European and the house is in Europe. The status of this house jurisdiction is European law.

Ontario cannot say I have a second house because it is technically and legally NOT the case.


I believe I have the title to dispute the NON rebate but I would like to hear some people opinion and cases to mine.


Thanks a lot in advance.

 

[scylla]

The Ontario law states that the purchaser's spouse cannot own (have interest in) a house anywhere in the world. Your wife has a property. So regardless of whether you have any interest in that property, you unfortunately don't meet the requirements for the rebate.

In other words, what disqualifies you is not the fact that you have interest in your wife's house - but the fact that your wife owns the house. It's your wife's interests (not yours) that are the problem.

Rule was correctly applied based on the info you've provided and you unfortunately don't qualify.

 

[scylla]

Oh - and the above is stated pretty clearly in the link you quoted:

To claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home, anywhere in the world while he or she was your spouse. Previous ownership in a home means you do not qualify for the land transfer tax first-time homebuyers refund. The method of acquiring the home (e.g., purchase, gift or through an inheritance) is not relevant.

 

[mauro80]

ok makes sense, but it doesn't investigate the upfront hipotesis separation of goods topic. But apparently it doesn't count.
The fact that it applies also to previous ownership it's an absolute non-sense to me. What if someone sold a small unit for necessity ?

 

[anujoshi]

Like one of the previous members said, it's not your interest (or non-interest) in the European property that is an issue; it is your wife's interest in the property that is an issue. Best to consult with (and get any second opinions from) a real estate lawyer.