Eligible first-time buyers purchasing a new or resale home may qualify for a refund of up to $4,000 on Ontario land transfer tax.

For homes within the City of Toronto, eligible buyers may also receive a municipal land transfer tax rebate of up to $4,475, providing combined savings of up to $8,475.

Where do these taxes apply?

Ontario land transfer tax generally applies to property purchases throughout the province, including Toronto.

Toronto’s municipal land transfer tax applies in addition to the provincial tax for properties within the City of Toronto. It does not apply to homes in Oakville, Burlington, or Milton.

Who qualifies?

Generally, to qualify for these first-time buyer refunds, you must:

• Be at least 18 years old.

• Have never owned a home, or an ownership interest in a home, anywhere in the world.

• Occupy the purchased home as your principal residence within nine months of the transfer.

• Be a Canadian citizen or permanent resident, or become one within 18 months of the transfer and meet the applicable application requirements.

If you have a spouse, they must not have owned a home or an interest in a home anywhere in the world while they were your spouse.

Unlike some federal first-time buyer programs, these refunds do not allow you to qualify again simply because several years have passed since you last owned a home.

How much will you receive?

Your refund cannot exceed the land transfer tax payable. The amount may also be reduced when purchasing with someone who does not qualify.

Your real estate lawyer can confirm your eligibility and arrange to claim the applicable refund at closing. Applications generally must be made within 18 months of the transfer.

For full details, review the Ontario first-time homebuyer refund rules and Toronto rebate requirements.

Buying your first home in Oakville, Burlington, or Milton? Contact the Vieira Team to get started.