Land Transfer Tax Refunds for First-Time Buyers in Ontario

Key points

• Ontario's land transfer tax applies when land is conveyed. First-time buyers of an eligible home may be eligible for a refund of all or part of it.

• The buyer must be at least 18 and must never have owned a home anywhere in the world.

• For homes conveyed on or after January 1, 2017 under agreements entered into after November 14, 2016, the buyer must also be a citizen or permanent resident.

• A buyer who becomes one within 18 months after the conveyance can still qualify.

• The buyer must move in as a principal residence within nine months.

• For homes conveyed on or after January 1, 2017, the maximum provincial refund is $4,000.

• The City of Toronto applies its own Municipal Land Transfer Tax and offers a separate first-time home buyer rebate.

The tax and the refund

Ontario's land transfer tax applies when land is conveyed. First-time buyers of an eligible home may be eligible for a refund of all or part of it. The refund is set out in section 9.2 of the Land Transfer Tax Act.

Who is a first-time purchaser

The Act defines a qualifying "purchaser" as an individual who is at least 18 years of age. The purchaser must never have owned an eligible home anywhere in the world. The purchaser's spouse must not have owned an eligible home anywhere in the world while they were spouses. The purchaser may also need to be a Canadian citizen or permanent resident, as explained below.

The Ministry of Finance explains that a person cannot re-qualify as a first-time buyer. The way an earlier home was acquired, whether by purchase, gift or inheritance, makes no difference. The Ministry also notes that this rule may differ from federal first-time buyer programs, such as the Canada Revenue Agency's Home Buyers' Plan.

Citizenship and permanent residence

A further condition applies where the home is conveyed on or after January 1, 2017 under an agreement of purchase and sale entered into after November 14, 2016. The purchaser must then also be a Canadian citizen or a permanent resident of Canada. Agreements entered into on or before November 14, 2016 are not subject to that condition.

Some buyers meet every other condition but are not citizens or permanent residents on the date of the conveyance. They become eligible if they become one within 18 months after that date.

Living in the home

The buyer must acquire the home for use as a principal residence. The buyer must occupy it as a principal residence no later than nine months after the date of the conveyance.

Which homes qualify

The Act lists the kinds of property that count as an "eligible home". They include:

• a detached house, a semi-detached house or a townhouse;

• a condominium unit;

• shares in a co-operative housing corporation acquired for the right to live in a unit;

• a qualifying mobile or manufactured home;

• a duplex, triplex or fourplex; and

• a tenant-in-common interest acquired for the right to live in a housing unit.

New homes and resale homes

For agreements of purchase and sale entered into before December 14, 2007, the refund applied only to a newly constructed home. For agreements entered into after December 13, 2007, it applies to any eligible home, whether newly built or resale.

For this purpose, a "newly constructed home" is one for which the buyer is entitled to a warranty under section 13 of the Ontario New Home Warranties Plan Act. It must also be sold by a vendor as defined in that Act. A replacement definition referring to the Protection for Owners and Purchasers of New Homes Act, 2017 has been enacted. It is not yet in force.

How much can be refunded

The Act sets the maximum refund where the agreement of purchase and sale was entered into after March 31, 1999. It is $2,000 for a conveyance before January 1, 2017 and $4,000 for a conveyance on or after January 1, 2017.

The Ministry of Finance explains that the higher limit turns on the date of the conveyance, not the date the agreement was signed. The refund carries no interest.

Buying with someone else

When a first-time buyer is not the only person on title, the refund is reduced to the share that matches the first-time buyer's own interest. Where the rules allow it, a spouse's interest may be added.

The Ministry gives an example. A parent who is not a first-time buyer and a child who is buy a home with equal interests. The child may claim 50% of the refund, and that claim cannot exceed 50% of the maximum.

Spouses

"Spouse" has the meaning in section 29 of the Family Law Act. That section adopts the definition in subsection 1 (1) of that Act: two persons who are married to each other, or who have together entered into a marriage that is voidable or void, in good faith on the part of a person relying on that clause to assert any right.

It also includes two persons who are not married to each other and have cohabited continuously for a period of not less than three years, or in a relationship of some permanence if they are the parents of a child as set out in section 4 of the Children's Law Reform Act.

A first-time buyer may include the interest of a spouse named on title who owned a home before the two became spouses. If the spouse owned a home while they were spouses, the Ministry states that no refund is available to either of them.

A further rule applies to conveyances on or after January 1, 2017 under agreements entered into after November 14, 2016. In those cases, a spouse's interest is left out if the spouse is not a citizen or permanent resident on the date of the conveyance. It may be added if the spouse becomes one within 18 months after that date.

Claiming the refund on closing

The Ministry of Finance states that qualifying taxpayers may claim an immediate refund at the time of registration.

In Ontario's electronic land registration system, it is claimed by completing the required statements under the Explanation tab of the electronic land transfer tax affidavit. On a paper registration, the Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes is filed at the Land Registry Office. A refund claimed at registration may offset the tax that would otherwise be payable.

Claiming the refund afterwards

If the refund is not claimed at registration, the tax is payable at that time. A claim may then be made to the Ministry of Finance. It can be made online through the Ministry's online services portal, or by sending the refund affidavit and supporting documents by email, fax or mail.

The Ministry asks for a copy of the registered transfer and the agreement of purchase and sale with all schedules, amendments and assignments. It also asks for the statement of adjustments (if applicable), proof of occupancy at the new address, and proof of Canadian citizenship or permanent residence. It states that utility bills and home insurance are not accepted as proof of occupancy.

The 18-month limit

An application for the refund must be made before 18 months have passed from the date of the conveyance.

Buying in Toronto

Since February 1, 2008, the City of Toronto has applied its own Municipal Land Transfer Tax to purchases of property in the City. It is set out in Toronto Municipal Code Chapter 760 and applies in addition to the provincial land transfer tax. The City states that its rate structure and rebate eligibility criteria changed effective March 1, 2017.

The City's first-time home buyer rebate applies to newly constructed and resale residential properties, not to commercial, industrial or multi-residential properties. For a conveyance or disposition on or after March 1, 2017, the maximum rebate is $4,475.

The City's own eligibility conditions are:

• the purchaser must be at least 18;

• the purchaser must occupy the home as a principal residence no later than nine months after the conveyance or disposition;

• the purchaser must not have previously owned a home, or had any ownership interest in a home, anywhere in the world;

• if the purchaser has a spouse, the spouse must not have owned a home, or had any ownership interest in a home, anywhere in the world while they were the purchaser's spouse; and

• for a conveyance or disposition on or after March 1, 2017, the purchaser must be a Canadian citizen or permanent resident of Canada, or become one within 18 months after that date.

If the rebate was not claimed at registration, the City must receive an application with supporting documents within 18 months after the conveyance or disposition.

Before you sign

Whether a buyer qualifies depends on the facts. These include past ownership, a spouse's history, citizenship on the date of the conveyance, when the agreement was signed, and who is on title. Those points can be reviewed before closing, when the refund may be claimed at registration.

Email your Agreement of Purchase and Sale to info@wolflaw.ca for a quote

Related: Home purchases | Checking a Real Estate Lawyer's Licence in Ontario | HST Rebates on New Homes in Ontario

This article is general information about Ontario law as of November 11, 2026. It is not legal advice.

Sources: Land Transfer Tax Act, R.S.O. 1990, c. L.6, s. 1 (1) and s. 9.2 (https://www.ontario.ca/laws/statute/90l06); Family Law Act, R.S.O. 1990, c. F.3, ss. 1 (1) and 29 (https://www.ontario.ca/laws/statute/90f03); Ontario Ministry of Finance, Land Transfer Tax Refunds for First-Time Homebuyers (https://www.ontario.ca/document/land-transfer-tax/land-transfer-tax-refunds-first-time-homebuyers); City of Toronto, Municipal Land Transfer Tax & Municipal Non-Resident Speculation Tax Rebate Opportunities (https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rebate-opportunities/); City of Toronto, Municipal Land Transfer Tax (MLTT) Resources for Lawyers (https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-resources-for-lawyers/); Toronto Municipal Code Chapter 760, Taxation, Municipal Land Transfer Tax, §§ 760-2 and 760-60 (https://www.toronto.ca/legdocs/municode/1184_760.pdf; official consolidation to September 6, 2023; later amending By-laws 1250-2024, 132-2026, 207-2026 and 1150-2026 do not change the first-time purchaser rebate or the $4,475 maximum). All checked November 10, 2026.

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