There is a rebate available to help first-time homebuyers offset the cost of their land tansfer tax (LTT). This applies to the purchase of new and re-sale homes.
When buying a home anywhere in Ontario, the maximum LTT rebate for a qualifying buyer is $4,000.
When buying a home in the City of Toronto, an additional LTT rebate is available for first-time home buyers up to a maximum of $4,475. The rebate applies to the purchase of a house, townhouse or condo. When buying in Toronto, you can also qualify for the Ontario rebate in addition to the Toronto rebate.
If you are buying your home with a spouse, but only one of you qualifies for this rebate, you can still receive 50% of the total available rebate.
| Region | Ontario | Toronto |
|---|---|---|
|
Maximum |
$4000 | $4,475* |
| Rebate will cover LTT to a maximum home value of |
$368,333 | $400,000 |
| Partial refund avail |
50% refund if spouse does not qualify |
50% refund if spouse does not qualify |
| Region |
|---|
|
Maximum |
| Rebate will cover LTT to a maximum home value of |
| Partial refund avail |
| Ontario |
|---|
| $4000 |
| $368,333 |
| 50% refund if spouse does not qualify |
| Toronto |
|---|
| $4,475* |
| $400,000 |
| 50% refund if spouse does not qualify |
Based on the Ontario land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $368,333. For homes with purchase prices over $368,333, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax.
Similarily, based on the Toronto land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $400,000. For homes with purchase prices over $400,000, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax
To qualify:
- you must be a Canadian citizen or permanent resident of Canada
- be 18 years of age or older
- be living in the home within 9 months of purchasing it
- you cannot have owned a home before, and
- if you have a spouse, they cannot have owned a home during the time they have been your spouse.
If you qualify, your real estate lawyer will help you file the necessary paperwork.
For more information visit:
https://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html
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