If you're a first-time homebuyer in Ontario, you may be eligible for a land transfer tax credit of up to $4,000 on your provincial Land Transfer Tax (LTT), provided you meet specific eligibility criteria standardized by the Ontario government. If the property is located in Toronto, you may be eligible for an additional land transfer tax credit of $4,475! These rebates are available on both new and resale residential properties as long as you qualify.

Who Qualifies for the Refund?

You must meet all of these requirements:

Be 18 years or older
Be a Canadian citizen or permanent resident, or become one within 18 months of closing
Have never owned a home (or interest in one) anywhere in the world
Plan to occupy the property as your principal residence within 9 months of the transfer date
Property must be located in Ontario
Once you've claimed the refund, even if you sell and later buy another property, you’re not eligible again.
If you’re married or living common-law, and your spouse owned a property during your marriage—even if you didn’t—you’re disqualified

How Much Can You Get Back?

In Ontario, the maximum Land Transfer Tax refund for first-time buyers is $4,000 which is credited towards your land transfer tax liability and calculated as follows:

0.5% of the amount of the purchase price up to and including $55,000, plus
1% of the amount of the purchase price between $55,001 and $250,000, plus
1.5% of the amount of the purchase price between $250,001 and $400,000, plus
2% of the amount of the purchase price between $400,001 and $2,000,000 plus
2.5% of the amount of the purchase price above $2,000,001

If the property is located in Toronto, a separate rebate is available up to maximum of $4,475 which is credited towards your land transfer tax liability and calculated as follows:

0.5% of the amount of the purchase price up to and including $55,000, plus
1% of the amount of the purchase price between $55,001 and $250,000, plus
1.5% of the amount of the purchase price between $250,001 and $400,000, plus
2% of the amount of the purchase price between $400,001 and $2,000,000 plus
2.5% of the amount of the purchase price above $2,000,001

Example Scenarios

Example 1: Buying a $350,000 home—LTT liability is eliminated entirely because of the $4,000 credit (the entire LTT is refunded)
Example 2: Buying a $460,000 home—the total LTT owed might be $5,675, but after applying the $4,000 refund, your net payable is $1,675.

How to Claim the Refund

At closing, your real estate lawyer will typically apply the rebate directly, reducing the LTT payable at registration. If the rebate was not applied at closing, then you can still apply to the Ontario Ministry of Finance within 18 months of registration using the official affidavit form and supporting documents

Co-Ownership and First-Time Buyer LTT Refunds in Ontario

If multiple people buy a home together, the refund is shared based on ownership percentages and eligibility:

Refund is prorated based on ownership share.
Only eligible buyers (first-time buyers) can claim their share.
If any buyer does not qualify (e.g., has previously owned a home), their share does not receive a refund.
If you’re married or living common-law, and your spouse has owned a home while you were spouses, no refund is available to either party

Refund Calculation in Co-Ownership Scenarios

Here are some common scenarios:

Scenario 1: One Eligible, One Ineligible Buyer

Alex and Jamie buy a home together 50/50. Alex is a first-time buyer. Jamie previously owned a home.

Total refund = $4,000
Alex’s 50% share = 50% of $4,000 = $2,000
Jamie’s 50% share is not eligible = $0

✅ Only Alex’s portion is refunded.

Scenario 2: Married Couple, One Has Owned Before

Priya and Daniel are married and buying a condo together. Only Priya is a first-time buyer. Daniel owned a home previously.

Even though Priya qualifies, she is disqualified because her spouse owned a home while they were married.

❌ No refund for either.

Scenario 3: Two Unmarried First-Time Buyers

Sara and Mike are not married and not common-law, each buy 50% of a home and both are first-time buyers.

Each qualifies fully.
Total refund = $4,000
Sara’s 50% share = 50% of $4,000 = $2,000
Mike’s 50% share = 50% of $4,000 = $2,000

✅ Each gets $2,000 (50% of $4,000).

Scenario 4: Parent–Child Purchase

A father and daughter purchase a home together, 99% owned by the daughter (first-time buyer), and 1% by the father (not eligible).

Total Refund = $4,000
Daughter’s 99% share = 99% of $4,000 = $3,960
Father’s 1% share is not eligible = $0

✅ The refund is prorated based on the daughter’s share only.

Co-Ownership Summary Table

First Time Buyer Land Transfer Tax Rebate

More Information

For more Information, view:

Contact me if you have any questions about your eligibility for the first-time buyer land transfer tax credit or if you want to start looking for your first property.