When you buy a home in Ontario, land transfer tax is one of the largest closing costs you’ll face. For first-time buyers, there’s meaningful relief available — and the good news is that you don’t have to do much to access it. Your real estate lawyer handles the process at closing.
Here’s what the rebate is worth, who qualifies, and exactly what happens at closing.
What the Rebates Are Worth
Available to first-time buyers across all of Ontario on both new construction and resale homes.
For homes priced below $368,000, this fully eliminates the provincial land transfer tax. For higher-priced homes, the $4,000 reduces the total tax payable.
Available to first-time buyers purchasing within the City of Toronto — on top of the provincial rebate.
For homes priced below $400,000, this fully eliminates the municipal land transfer tax.
For first-time buyers purchasing outside the City of Toronto — in Mississauga, Vaughan, Markham, etc. — only the provincial rebate applies. There is no second municipal land transfer tax in those areas.
Who Qualifies
To qualify for the Ontario first-time buyer land transfer tax rebate:
- Canadian citizen or permanent resident — at time of purchase.
- At least 18 years old at the date of transfer.
- Never previously owned a home anywhere in the world.
- Intend to occupy as principal residence within nine months of closing.
- Both buyers must qualify — if two people are on title and only one qualifies, only 50% of the rebate is available.
If you previously owned a home anywhere in the world — even outside Canada — you may not qualify. Confirm your eligibility with your lawyer before you rely on the rebate in your closing cost budget.
How to Claim It — Your Lawyer Handles This at Closing
This is the part most buyers find surprising: you don’t apply for the rebate separately or claim it on your tax return. Your real estate lawyer applies the rebate directly at closing.
Here’s exactly how the process works:
The Closing Process for LTT Rebates
The key point: tell your lawyer you are a first-time buyer as early as possible — not on closing day. This allows them to plan the closing statement correctly and confirm eligibility before you’re at the table.
The Rebate Applies to Both New Construction and Resale
Both the provincial Ontario rebate and the Toronto municipal rebate apply to new construction homes and resale homes alike. There is no restriction on property type — the qualification criteria are based on the buyer, not the home.
What This Means in Practice
For a first-time buyer purchasing a home within the City of Toronto, the combined rebate of up to $8,475 is a real and meaningful reduction in closing costs. It doesn’t require any extra paperwork from you — it’s handled by your lawyer. What it does require is that you confirm your eligibility early, so the rebate is correctly applied at closing rather than becoming a post-closing complication.
For a full picture of every first-time buyer program available to you — including the FHSA, HBP, and federal tax credit — see our First-Time Home Buyer Incentives guide.
Legal disclaimer: Land transfer tax rebate eligibility rules and amounts are set by the Ontario Ministry of Finance and the City of Toronto and are subject to change. This blog is for general educational purposes only and does not constitute legal or financial advice. Confirm your eligibility and the applicable rebate amounts with your real estate lawyer before closing.
Frequently Asked Questions
How much is the Ontario land transfer tax rebate for first-time buyers?
Ontario first-time buyers are eligible for up to $4,000 on the provincial land transfer tax. Buyers within the City of Toronto are eligible for an additional municipal rebate of up to $4,475. Combined, qualifying first-time buyers in Toronto can receive up to $8,475 in total land transfer tax rebates — applied at closing by their lawyer.
Do I need to file separately to claim the rebate?
No. In Ontario, the land transfer tax rebate is applied at closing by your real estate lawyer — it reduces the amount you pay on the closing statement. It is not a separate application or tax return filing after the fact. Confirm your first-time buyer status with your lawyer as early as possible so it can be properly applied.
Who qualifies as a first-time home buyer for the Ontario LTT rebate?
You must be a Canadian citizen or permanent resident, at least 18 years old, have never owned a home anywhere in the world, and intend to occupy the property as your principal residence within nine months of closing. If two buyers are on title, both must qualify for the full rebate. If only one qualifies, only 50% of the rebate applies.
Does the rebate apply if I buy outside the City of Toronto?
Yes — the provincial Ontario land transfer tax rebate of up to $4,000 applies anywhere in Ontario, including Mississauga, Vaughan, Markham, Oakville, and all other municipalities. The Toronto municipal rebate of up to $4,475 applies only to purchases within the City of Toronto boundaries, where the municipal land transfer tax is charged.
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