If you’re a first-time homebuyer (FTHB) in British Columbia, Prince Edward Island, or Ontario, you may be eligible to receive a land transfer tax rebate.
To find out your land transfer tax (LTT), including your rebate, use our land transfer tax calculator.
The eligibility requirements and rebates differ by region.
If you owned a property in the past, you can identify as a FTHB again. Three years after you sell your home, you can take advantage of FTHB benefits, as long as you haven’t owned a property in that period of time.
If you’re buying your first home in Ontario, you may be eligible for a land transfer tax rebate equal to the full cost of your LTT1, up to $2,000.
If your spouse had owned a home in the past but sold it before getting married, or if you’re buying with a partner who is not a FTHB, you’re able to apply for your portion (typically 50%) of the LTT payable. Check out our page on buying with a partner for more information.
You must apply for this refund within 18 months after the date of the transfer. Your lawyer typically applies for it on your behalf and it is an immediate rebate on closing day. You must also live in the home as your principal residence within 9 months of your closing date.
There are more rebates available for you to take advantage of! For example, if you’re a first-time homebuyer (FTHB), there is a First-Time Home Buyers’ Tax Credit worth up to $750, and the First-Time Home Buyers’ Plan that allows each FTHB to withdraw up to $25,000 tax-free.
In Toronto, first-time homebuyers are able to receive a refund of their municipal land transfer tax2, up to $3,725.
The same rule applies to Toronto as Ontario: If your spouse was a homeowner but sold the home prior to getting married, or if you’re buying with a partner who is not a FTHB, you can apply for your portion (typically 50%) of the LTT payable. Read our page on buying with a partner for full details.
You must also live in the home as your principal residence within 9 months of your closing date. Your lawyer can claim the rebate through Teraview software when they register your transfer or deed on closing day.
If you’re a first-time homebuyer in BC, you can take advantage of a tax exemption on your land transfer tax3, if:
If you’re buying with a partner and they are not a first-time homebuyer, only your percentage of the purchase is eligible. So, for example, if you own 50% interest in a property, 50% of the tax amount would be eligible for the exemption.
First-time homebuyers purchasing in PEI are exempt from paying land transfer tax4 if:
Both purchasers—if there is more than one—must be first-time homebuyers.
1 Ontario Ministry of Finance: Land Transfer Tax Refund for First-time Homebuyers 2 City of Toronto: Rebate Opportunities 3 Government of BC: First Time Home Buyers’ Program 4 PEI Finance, Energy, and Municipal Affairs: Real Property Transfer Tax