Is there a rebate on Toronto's municipal land transfer tax for first-time buyers?

Yes. The City of Toronto offers its own first-time home buyer rebate on the Municipal Land Transfer Tax (MLTT), separate from and in addition to the provincial Ontario LTT rebate. The Toronto MLTT rebate has its own maximum amount — it can reduce or eliminate the MLTT owing for eligible first-time buyers, up to the cap set by the City.

Eligibility requirements for the Toronto MLTT rebate mirror those of the provincial rebate in most respects: you must be 18 or older, a Canadian citizen or permanent resident, have never owned a home anywhere in the world, and intend to occupy the property as your principal residence. Because the requirements are similar, most people who qualify for the provincial rebate also qualify for the Toronto rebate.

The two rebates together can meaningfully reduce the combined LTT cost for a first-time buyer purchasing in Toronto. Your real estate lawyer applies for both rebates at closing, so you receive the benefit immediately rather than waiting for a refund later.