First-time home buyer land transfer tax refund첫 집 구매자 토지양도세 환급

What is it?

When you buy a home in Ontario you pay land transfer tax (a provincial tax charged when a home changes hands). If the home is in the City of Toronto, you also pay a second, municipal land transfer tax (MLTT). If you have never owned a home, you can get part of these taxes back.

The Ontario refund is up to $4,000. Since January 1, 2017, there is no tax at all on the first $368,000 of the price, and on a more expensive home you get $4,000 back. Toronto’s rebate is a separate amount of up to $4,475. For a first home in Toronto, the two together save you up to $8,475.

It applies to new and resale homes (for agreements signed after December 13, 2007).

Who qualifies?

Ontario and Toronto use almost the same tests. You must meet all of them.

• You are at least 18 years old.
• You have never owned a home, or a share of a home, anywhere in the world, at any time. It does not matter how you got it: a purchase, a gift or an inheritance all count.
• If you have a spouse, your spouse must not have owned a home anywhere in the world while they were your spouse. A home your spouse owned before you became spouses is fine.
• You are a Canadian citizen or permanent resident. If you are not at closing, you can still apply if you become one within 18 months.
• You move into the home as your principal residence within nine months after the transfer.
• You apply within 18 months after the transfer is registered.

It is once in a lifetime. If you ever owned a home, you cannot become a "first-time buyer" again. This is different from the federal HBP and FHSA, which look at the last four years. "Spouse" here follows section 29 of Ontario’s Family Law Act: not only married couples, but also partners who have lived together for at least three years, or who have a child together.

How much do you get back?

Using Toronto’s rate table, the $4,475 maximum equals the municipal tax on a $400,000 home (our own calculation). Below that price, the Toronto tax is refunded in full.

How do you claim it?

1. Before you write an offer, tell your agent and your lawyer that you are a first-time buyer, and whether your spouse has ever owned a home.
2. At closing (when title is registered), your lawyer selects the refund statements in the land transfer tax section of the electronic registration system, and the refund is taken off the tax you owe right away. This is the usual way for both the Ontario and the Toronto refunds.
3. If it was not claimed at registration, you pay the full tax first and then apply within 18 months to the Ontario Ministry of Finance (online portal) and to the City of Toronto (email, fax or mail). Ontario pays no interest on the refund, and Toronto charges a processing fee for refunds claimed after registration.
4. Documents for a later claim: the registered transfer (deed), the agreement of purchase and sale with all schedules, the statement of adjustments, proof of citizenship or permanent residence, and proof that you live there showing the new address (phone or internet bills, driver’s licence, and so on). Utility bills and home insurance are not accepted as proof of occupancy. The City of Toronto also does not accept property tax bills as proof of occupancy. For the City, you also send its own rebate application, a supplementary information form and an authorization of representative form, plus the docket summary if the transfer was registered electronically.

Example

A first home: an $800,000 condo in North York, inside the City of Toronto. Calculated with the official Ontario and Toronto rate tables.

Estimate for reference only. Rates are from the Ontario Ministry of Finance and City of Toronto pages as of October 30, 2026 (2.0% on the part of the price above $400,000). Toronto’s small administration fee is left out. Check the exact amounts on your lawyer’s statement of adjustments.

If a parent goes on title with you

Banks often ask a parent to go on title. If the parent has owned a home, the refund normally covers only the child’s share. With a 50/50 split, that is up to $2,000.

If the parent is on title only for the mortgage and has no real ownership share (a trustee), you pay the full tax at registration and then apply to the Ministry of Finance with evidence (a letter from the bank or a trust agreement), and the child can get the full refund. The Ministry’s guidance says so. Settle the title structure with your lawyer before the offer.

How the spouse rule works

• Your spouse owned a home while they were your spouse: neither of you gets the refund, even if you never lived in that home together.
• Your spouse owned a home before becoming your spouse: you qualify, and if your spouse is a citizen or permanent resident you can claim their share too, up to $4,000 in total.
• Your spouse is not a citizen or permanent resident at closing: you get the refund for your own share only. If your spouse gets permanent residence within 18 months, you can then claim their share as well, up to $4,000 combined.
• Two people who are not married and not spouses under the Family Law Act buy together: each is tested separately for their own share.

What to watch out for

• The Ministry can audit refunds later. Getting a refund by false statements can lead to charges and a fine of up to $4,000. Do not hide a home you owned in Korea or any other country.
• You must move in within nine months. An investment property you rent out right away does not qualify.
• For a pre-construction condo, land transfer tax is paid at the final closing when title transfers, not at occupancy, so the refund is claimed then. If you marry or your spouse buys a home in between, your eligibility can change, so tell your lawyer.
• A newcomer can buy before getting permanent residence, but the refund must be claimed within the 18-month deadline after getting it. Separately from land transfer tax, also check the federal foreign buyer ban and the NRST (non-resident speculation tax).