If you’re a first-time homebuyer (FTHB) in Ontario, British Columbia, or Prince Edward Island, you may be eligible to receive a land transfer tax (LTT) rebate.
The eligibility requirements and rebates differ by region.
If you’re a first-time home buyer, there are more programs available for you to take advantage of! For example, there is a First-Time Home Buyers’ Tax Credit worth up to $750, and the First-Time Home Buyers’ Plan (HBP) that allows each FTHB to withdraw up to $25,000 tax-free.
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 $4,000.
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.
In Toronto, first-time homebuyers are able to receive a refund of their municipal land transfer tax2, up to $4,475.
You must apply for this refund within 18 months after the date of the transfer. Your lawyer can claim the rebate through 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:
First-time homebuyers purchasing in PEI are exempt from paying land transfer tax4 if:
All purchasers of the property—if there is more than one—must be first-time homebuyers to receive the tax exemption.
1 Ontario Ministry of Finance: Land Transfer Tax Refunds for First-Time Homebuyers 2 City of Toronto: Municipal Land Transfer Tax (MLTT) Rebate Opportunities 3 Government of BC: First Time Home Buyers’ Program 4 PEI: Real Property Transfer Tax First-Time Home Buyers Exemption