Buying your first home in Ontario comes with excitement and expenses. One of the biggest costs buyers face is the Land Transfer Tax (LTT), a mandatory tax paid when a property changes ownership. Fortunately, Ontario offers a First-Time Home Buyer Land Transfer Tax Rebate to help reduce this cost.
If you're purchasing in Toronto, you may also qualify for an additional Toronto LTT Rebate; however, many buyers are unaware of how it works or how to apply. This guide simplifies the essentials and links to detailed resources so you can learn more with clarity and confidence.
Every homebuyer in Ontario is required to pay Land Transfer Tax (LTT) at closing. The amount varies based on the purchase price and can add thousands to your closing costs.
Learn more about LTT rates and calculations.
Ontario provides up to $4,000 back for eligible first-time homebuyers, helping offset some or all of the Land Transfer Tax (LTT) on a primary residence.
Quick Overview:
Maximum Ontario rebate: $4,000
May cover full LTT depending on your purchase price
Must be for a principal residence
Eligibility rules must be met
Learn more about LTT and Toronto LTT.
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You may qualify if:
Many buyers lose eligibility due to a spouse’s previous homeownership. A real estate lawyer can review your situation before closing to ensure compliance.
If you’re purchasing property in the City of Toronto, you are required to pay both:
Ontario Land Transfer Tax
Toronto Municipal Land Transfer Tax
You may be eligible for two separate rebates:
Up to $4,475 for Toronto LTT
Up to $4,000 for Ontario LTT
Learn more about Toronto and Ontario Land Transfer Tax.
Home price: $600,000
LTT: approx. $8,475
Ontario Rebate: up to $4,000
New total: approx. $4,475
Home price: $600,000
Toronto LTT: approx. $8,475
Toronto Rebate: up to $4,475
Ontario Rebate: up to $4,000
New total: $0 LTT payable (if maximum rebates apply)
Many Toronto buyers are unaware that municipal rebates can significantly increase their total savings.
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In most cases, the rebate is applied automatically at closing by your lawyer.
You will need to sign legal declarations confirming:
Your lawyer submits these documents with the title transfer.
Mistakes can lead to:
Rebate clawbacks
Penalties
Ministry reassessment
Delayed registration
Our firm calculates both LTT and Toronto LTT during your real estate closing to ensure rebates are applied correctly.
Learn more about Land Transfer Tax.
A lawyer can confirm eligibility early, so there are no surprises on closing day.
Do I get the full $4,000 rebate automatically?
Not necessarily; it depends on your purchase price and eligibility.
Can I combine Ontario and Toronto rebates?
Yes, if purchasing in Toronto.
Can non-residents receive the rebate?
No. You must be a Canadian citizen or permanent resident.
Is the rebate applied after closing?
Usually, it is applied at closing through your lawyer.
What if I move in later than 9 months?
You may lose eligibility.
The First-Time Home Buyer Land Transfer Tax Rebate can reduce thousands from your closing costs. Because eligibility rules are strict, having a lawyer ensures you receive the full amount you qualify for and avoid penalties later.
If you're preparing to buy your first home in Ontario or Toronto, Khan Law LLP can guide you through LTT, Toronto LTT, and rebate rules to ensure a smooth closing.
Have questions about what you just read? Whether it is real estate, family law, immigration, or any other legal matter, our team at Khan Law is here to help. Contact us today to speak with a lawyer who understands the details that matter to you.
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Khan Law is a boutique law practice that has been providing legal services to the Greater Toronto Area since the year 2000.
