Do I pay land transfer tax when buying a new construction condo in Ontario?
Yes, land transfer tax applies to new construction condos in Ontario. You pay LTT when the deed is registered in your name — typically at the occupancy or final closing stage, not at the time you sign the agreement of purchase and sale with the builder.
For pre-construction units, the "value of the consideration" that LTT is calculated on usually includes the full purchase price set out in the agreement, plus any adjustments or extras that form part of the consideration. Builder upgrades or extras paid separately may or may not be included depending on how they are structured — your lawyer will review the agreement to determine what is captured.
New construction purchases also attract HST (with a possible new housing rebate), which is a separate charge from LTT. Budget for both. If you are a first-time buyer, you may be eligible for the Ontario first-time buyer LTT rebate, which can offset some of the LTT cost.
Key takeaways
- LTT on a new condo is triggered at deed registration, not when you sign with the builder.
- The taxable consideration includes the purchase price and potentially some extras.
- HST and LTT are separate obligations — budget for both.
- First-time buyers may be eligible for an LTT rebate even on pre-construction.