What is the first-time home buyer land transfer tax rebate in Ontario?
Ontario provides a land transfer tax rebate for eligible first-time home buyers of up to $4,000 on the provincial land transfer tax. If you are buying in the City of Toronto, you may also qualify for a separate municipal land transfer tax rebate of up to $4,475. Together, these rebates can substantially reduce your closing costs.
To qualify for the provincial rebate, you must be at least 18 years old, be a Canadian citizen or permanent resident, occupy the home as your principal residence within nine months of closing, and have never owned an eligible home anywhere in the world. If you are buying with a partner who has previously owned, only your share of the purchase may qualify.
The rebate is applied at closing through your lawyer, so you do not have to pay the full LTT amount and then wait for a government cheque — it reduces what you owe on closing day. Your lawyer calculates your eligibility and applies the rebate automatically if you qualify.
Key takeaways
- First-time buyers can receive up to $4,000 off provincial LTT at closing.
- Toronto buyers may also receive up to $4,475 in municipal LTT rebate.
- You must never have owned an eligible home anywhere in the world.
- The rebate is applied at closing by your lawyer, not claimed afterward.