🏠 First-Time Homebuyer Land Transfer Tax Refund – Ontario
Are you buying your first home in Toronto or anywhere in Ontario? You may be eligible for a refund on the Ontario Land Transfer Tax, potentially saving you up to $4,000 on your purchase.
This page explains everything first-time homebuyers need to know about the Land Transfer Tax Refund in Ontario, including eligibility, how much you can save, and how to apply.
✅ What Is Land Transfer Tax in Ontario?
When you buy a home, condo, or land in Ontario, you are required to pay a Land Transfer Tax (LTT) to the province. If you're purchasing in Toronto, you'll also pay a Toronto Municipal Land Transfer Tax.
The good news? If you're a first-time homebuyer, you may qualify for a full or partial refund of this tax.
🎯 First-Time Home Buyer Refund Eligibility
To qualify for the Ontario Land Transfer Tax Refund, you must meet the following requirements:
Be at least 18 years old
Have never owned a home or an interest in a home, anywhere in the world
Occupy the home as your principal residence within 9 months of the transfer
If you have a spouse, they must not have owned a home while being your spouse
Be a Canadian citizen or permanent resident
🕒 Note: If you’re not a citizen or permanent resident at the time of purchase, you have 18 months to obtain status and apply for the refund.
💸 How Much Can You Save?
As of January 1, 2017:
You pay no land transfer tax on the first $368,000 of your home’s purchase price
The maximum refund is $4,000
Example:
If you buy a home for $350,000 and qualify, you won't pay any Ontario land transfer tax.
If your home costs more than $368,000, you will receive a maximum refund of $4,000, and pay tax only on the amount above that threshold.
🧑🤝🧑 Joint Ownership & Spouses: How Refunds Work
If both buyers qualify: You may receive the full $4,000 refund.
If only one person qualifies: The refund is proportional to their ownership interest.
Parent & Child Example:
If a parent (non-qualifying) and child (qualifying) each own 50% of a property, the child can claim 50% of the $4,000 refund ($2,000).
Spouse Example:
If your spouse owned a home before becoming your spouse—but not while being your spouse—you may still qualify.
📝 Additional Scenarios
Trust Titles: If a non-qualifying parent is on title only for mortgage purposes, and does not acquire a beneficial interest, a refund can still be claimed by the child—proof (like a trust letter or bank letter) is required.
Permanent Resident Status After Purchase: Purchasers have 18 months post-registration to become a permanent resident or citizen and claim the refund.
📅 Deadline to Apply
You must apply for the refund within 18 months of the registration of the property or the date the unregistered disposition occurs.
🔍 What Is an Eligible Home?
To qualify, the home must be one of the following types:
Detached or semi-detached house
Condo unit or townhouse
Duplex, triplex, or fourplex
Mobile home or manufactured home (CSA-compliant)
Co-op unit (capital stock with residency rights)
Any residential home covered under the Ontario New Home Warranty
⚠️ Beware of False Claims
Applications may be audited by the Ontario Ministry of Finance. Submitting false information may result in fines of up to $4,000.
📌 Summary: First-Time Homebuyer Tax Refund Benefits
CriteriaDetails
| Max Refund | $4,000 |
| Tax-Free Limit | First $368,000 of purchase price |
| Occupancy Requirement | Must live in home within 9 months |
| Application Deadline | 18 months after property registration |
| Citizenship Requirement | Must be Canadian citizen or permanent resident |
💬 Need Help Buying Your First Toronto Home?
Navigating your first home purchase in Ontario can be overwhelming. Our experienced real estate team is here to guide you—from qualifying for rebates to closing the deal smoothly.
📞 Contact us today to get expert help with your first home purchase in Toronto and claim your maximum land transfer tax refund!