What counts as a 'first-time home buyer' in Ontario for rebate purposes?
For the purpose of Ontario's land transfer tax rebate, a first-time home buyer is someone who has never owned an eligible home or an interest in an eligible home anywhere in the world — not just in Ontario or Canada. This is a strict definition. If you previously owned a home in another country, you do not qualify, even if you disposed of it years ago.
Eligible homes include single-family houses, semi-detached houses, townhouses, mobile homes, multi-unit residences of up to two units, and condo units. Bare land without a residence is generally not an eligible home.
If you are buying jointly with a spouse or partner who has previously owned a home, only your portion of the interest may qualify for the rebate — the rebate may be prorated based on your ownership share. The rules can be nuanced in co-purchase scenarios, so review your eligibility with your lawyer before closing.
Key takeaways
- You must never have owned a home anywhere in the world — not just in Canada.
- Previous ownership in another country disqualifies you.
- Joint buyers where only one qualifies receive a prorated rebate.
- Confirm your eligibility with your lawyer early in the process.