What is the Ontario first-time home buyer land transfer tax rebate?

Ontario offers a land transfer tax rebate for first-time home buyers designed to reduce the upfront cost of purchasing your first home. The rebate can offset all or part of the provincial LTT you owe, up to a maximum amount set by the provincial government. As of the time of writing, eligible first-time buyers can receive a rebate of up to $4,000 toward their Ontario LTT.

To qualify, you must never have owned a home anywhere in the world before — not just in Ontario. You must be at least 18 years old, a Canadian citizen or permanent resident, and you must occupy the home as your principal residence within a set period after closing.

If you have a co-purchaser who is not your spouse, both purchasers must be first-time buyers to receive the full rebate; if only one qualifies, the rebate is prorated to that person's interest. Spouses are different: the result is all-or-nothing based on when the spouse owned a prior home — ownership before becoming your spouse still allows the full rebate, ownership during the relationship disqualifies both. The rebate is applied directly at closing through your lawyer — you do not need to file a separate claim afterward.