When is the first-time buyer LTT rebate applied for a new construction home?

For a new construction home or condo, Ontario land transfer tax — and any first-time buyer rebate — is applied at the time the deed is registered in your name, which typically occurs at the final closing with the builder. This is the point at which the transfer of title completes and LTT becomes payable.

In a pre-construction condo purchase, there is sometimes an occupancy closing (when you get the keys and move in) and a final closing (when the condo corporation is registered and title transfers). LTT is due at the final closing — not the occupancy closing. Make sure you and your lawyer are clear on which closing triggers LTT and the rebate.

You remain eligible for the first-time buyer LTT rebate on new construction as long as you meet all the usual eligibility requirements on the date of that final closing — including that you have not acquired any other property in the meantime that would disqualify you. Notify your lawyer of your first-time buyer status early in the process so the rebate is properly prepared for final closing.