How does the Land Transfer Tax Rebate for First-Time Homebuyers work?

The land transfer tax rebate is another tax credit available to first-time home buyers in Ontario, British Columbia, and Prince Edward Island.

Ontario Land Transfer Tax Rebate

First-time homebuyers in Ontario can qualify for a rebate equal to the full amount of their land transfer tax, up to a maximum of $4,000.

To qualify for the Ontario Land Transfer Tax Refund for First-Time Homebuyers, you must meet the following criteria:

•  You must be a Canadian citizen or permanent resident of Canada,
•  You must be 18 years of age or older,
• You must live in the home within 9 months of purchasing it,
• You cannot have owned a home before, and
• If you have a spouse, they cannot have owned a home during the time they have been your spouse.

Based on the Ontario land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $368,333. For homes with purchase prices over $368,333, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate. 

If you qualify, your real estate lawyer will help you file the necessary paperwork. You can either file for your land transfer tax rebate electronically or download the Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes.

Toronto Land Transfer Tax Rebate

First-time homebuyers who live in the City of Toronto can qualify for a rebate equal to the full amount of their municipal land transfer tax, up to a maximum of $4,475. This rebate applies whether you are buying a Toronto townhouse, house, or condo. 

You can also qualify for the Ontario rebate in addition to the Toronto rebate.

To qualify for the Toronto Municipal Land Transfer Tax Rebate for First-Time Purchasers, you must meet the following criteria:

• You must be a Canadian citizen or permanent resident of Canada,
• You must be 18 years of age,
• You must live in the home within 9 months of purchasing it,
• You cannot have owned a home before, and
• If you have a spouse, they cannot have owned a home during the time they have been your spouse.

Based on the Toronto land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $400,000. For homes with purchase prices over $400,000, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.

If you qualify, your real estate lawyer will claim the rebate electronically through Teraview when he/she registers your transfer/deed.