Do First-Time Home Buyers Get a Land Transfer Tax Refund in Ontario?

Yes, Ontario offers a land transfer tax refund of up to $4,000 to eligible first-time homebuyers. That amount has applied since January 1, 2017. You must be at least 18, must never have owned an eligible home anywhere in the world, and must occupy the home as your principal residence within nine months.

The refund must be claimed within 18 months after registration. For agreements signed after November 14, 2016, it is limited to Canadian citizens and permanent residents, but a buyer who is neither at closing has 18 months after registration to become one and then apply. If your spouse owned an eligible home while married to or in a spousal relationship with you, neither of you qualifies.

Toronto's municipal land transfer tax is separate from Ontario's, and municipal rules vary, so do not assume the provincial refund covers it. Confirm with a lawyer whether any refund applies to the municipal tax on your purchase, and how the refund is claimed on your closing.

Because eligibility depends on your citizenship or residency status, ownership history and your spouse's history, it is worth gathering your documents early. Newcomers in particular should check their status at closing.