Who qualifies for a land transfer tax rebate?

Most programs target first-time home buyers who meet residency and other conditions. Eligibility, maximum amounts, and rules vary by province and municipality, so confirm the requirements where you are buying.

Can I get more than one rebate?

Sometimes. In Toronto, for instance, an eligible first-time buyer may claim both a provincial Ontario rebate and an additional municipal rebate, reducing both layers of land transfer tax.

Does the rebate reduce my cash needed at closing?

Yes. Land transfer tax is paid in cash at closing and cannot be added to the mortgage, so a rebate directly lowers the upfront cash you need and can free up funds for your down payment.

Mortgage Glossary

What is Land Transfer Tax Rebate?

A land transfer tax rebate is a refund that reduces or eliminates the land transfer tax an eligible buyer, usually a first-time home buyer, pays when purchasing a home. It is offered by certain provinces and municipalities, each with its own rules and maximum amounts. The rebate lowers one of the larger closing costs on a purchase.

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Quick answer

Also known as: first-time buyer land transfer tax rebate, LTT rebate

Key points

Reduces or eliminates land transfer tax for eligible buyers, usually first-time buyers.
Offered by certain provinces and municipalities, each with its own rules.
Ontario offers up to $4,000 for eligible first-time buyers.
Toronto adds a separate municipal rebate on top of its own land transfer tax.
British Columbia and PEI also have first-time buyer programs.
Land transfer tax is paid in cash at closing and cannot be added to the mortgage.

Land Transfer Tax Rebate explained

Land transfer tax is charged by many provinces, and some municipalities, when property changes hands, and it is typically one of the biggest closing costs a buyer faces. A land transfer tax rebate refunds part or all of this tax for eligible buyers, most often first-time home buyers who meet residency and other conditions.

The programs and amounts vary by jurisdiction. Ontario, for example, offers a rebate of up to $4,000 for eligible first-time buyers, and Toronto provides an additional municipal rebate on top of its own land transfer tax. British Columbia and Prince Edward Island also have first-time buyer programs. Because rates, thresholds, and eligibility differ widely by location, buyers should confirm the specific rules where they are purchasing.

What a Land Transfer Tax Rebate is for

The rebate exists to make home ownership more attainable for first-time buyers by trimming a sizable upfront cost. Land transfer tax is paid in cash at closing and cannot be rolled into the mortgage, so reducing it frees up money buyers can put toward their down payment or other closing costs. It is a targeted form of support for newcomers to ownership.

How it can help you

Knowing whether a rebate applies helps you budget your closing costs accurately and avoid a cash shortfall at closing, since land transfer tax must be paid upfront. It can also free up funds for a larger down payment. Lenderoo shops 40+ lenders for free, so once you know your true cash-to-close, you can match it with the right mortgage.

When it comes up

The rebate comes into play when a first-time buyer calculates the cash they need at closing. In a jurisdiction with a rebate, a qualifying buyer can subtract it from their land transfer tax bill, sometimes reducing it to zero on lower-priced homes. In Toronto, an eligible buyer may claim both a provincial and a municipal rebate.

Example: An Ontario first-time buyer

Imagine a first-time buyer in Ontario whose land transfer tax on a purchase works out to $5,000.

Ontario offers an eligible first-time buyer a rebate of up to $4,000, so their net provincial land transfer tax drops to about $1,000. If they are buying in Toronto, an additional municipal rebate can further reduce the city's separate land transfer tax. Because programs vary by jurisdiction, the exact savings depend on where you buy, so confirm the local rules.

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Questions & answers

Land Transfer Tax Rebate: frequently asked questions

Common questions Canadians ask about land transfer tax rebate.

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