What the Ontario first-time buyer rebate is
When you buy a home in Ontario, you pay Land Transfer Tax (LTT) at closing — a graduated tax based on the purchase price. If you buy in Toronto, you also pay a second LTT charged by the city (the Municipal Land Transfer Tax, or MLTT). On a $700,000 Toronto purchase, the combined LTT is around $20,000 — paid by the buyer, in cash, on closing day.
For first-time home buyers, Ontario rebates a portion of both taxes. The provincial rebate maxes out at $4,000. The Toronto MLTT rebate maxes out at $4,475. Combined, a Toronto first-time buyer can save up to $8,475 off their LTT bill.
The rebate is one of the most significant tax credits available to first-time buyers in Canada — but it's also the one most often missed, because new buyers assume their lawyer will handle it automatically. Most do — but it's worth confirming before closing.
How much you actually save — by price band
The rebate is structured as "up to" the maximum. On smaller purchases the rebate may cover 100% of your LTT; on larger purchases, only a partial offset.
Provincial LTT — up to $4,000 rebate
The Ontario provincial LTT brackets in 2026:
- 0.5% on the first $55,000
- 1.0% on the portion from $55,001 to $250,000
- 1.5% on the portion from $250,001 to $400,000
- 2.0% on the portion from $400,001 to $2,000,000
- 2.5% on the portion above $2,000,000
The $4,000 rebate fully offsets provincial LTT on purchases up to about $368,000. Above that, you pay the difference.
Example — $500,000 purchase, Ontario, outside Toronto:
- Provincial LTT before rebate: $6,475
- Less first-time buyer rebate: −$4,000
- Net provincial LTT: $2,475
Toronto MLTT — up to $4,475 rebate
The Toronto MLTT mirrors the provincial brackets but adds a luxury surtax above $3 million. The $4,475 first-time-buyer rebate fully offsets Toronto MLTT on purchases up to about $400,000. Above that, you pay the difference on top of whatever provincial LTT remains.
Example — $700,000 purchase, Toronto:
- Provincial LTT: $10,475 − $4,000 rebate = $6,475
- Toronto MLTT: $10,475 − $4,475 rebate = $6,000
- Total LTT due at closing: $12,475
Without the rebate, the same buyer would pay $20,950 — so the rebate saves $8,475.
Quick reference
| Purchase price | Provincial LTT (net) | Toronto MLTT (net) | Outside Toronto total | Toronto total | |---|---|---|---|---| | $300,000 | $0 | $0 | $0 | $0 | | $400,000 | $1,475 | $1,475 | $1,475 | $2,950 | | $500,000 | $2,475 | $2,475 | $2,475 | $4,950 | | $700,000 | $6,475 | $6,000 | $6,475 | $12,475 | | $900,000 | $10,475 | $10,000 | $10,475 | $20,475 |
For an exact calculation on your specific purchase price, run the Ontario LTT calculator and check the "first-time buyer" box.
Who qualifies
To claim the first-time home buyer rebate in Ontario you must meet all of:
- Be at least 18 years old at the date of closing
- Be a Canadian citizen or permanent resident at the time of closing (if you become one within 18 months of closing, you can apply retroactively)
- Have never owned a home or interest in a home, anywhere in the world
- Your spouse must also never have owned a home while they were your spouse
- Plan to occupy the property as your principal residence within 9 months of closing
The spousal rule is the most-missed disqualifier. If you're married or common-law and your spouse owned a home before you got together (even one they sold years ago), the rule depends on timing: only ownership while you were spouses disqualifies you. If your spouse owned a home before your relationship began, you still qualify on your share.
Important spousal nuances
- If you're a first-time buyer but your spouse owned a home while you were together, neither of you can claim — even if the property is in your name only
- If your spouse owned a home before you became spouses and disposed of it before you got together, you can still claim on your 50% share of the new property
- Same-sex spouses, common-law partners, and married couples are all treated identically
How to claim the rebate
The rebate is administered at closing by your real-estate lawyer, who handles the LTT filings as part of the standard closing paperwork. You don't pre-apply, and you don't claim it on your tax return.
Step by step
- Tell your lawyer you're a first-time buyer when you engage them. They'll add the rebate election to the closing documents.
- Sign the Land Transfer Tax Affidavit at closing — your lawyer will include a section confirming first-time buyer status.
- Your lawyer files the rebate election with the LTT remittance to the Ontario Ministry of Finance, and with the Toronto MLTT filing if applicable.
- The rebate is netted against your LTT bill — you only pay the difference (or $0 if the rebate fully covers it).
What if your lawyer misses it?
You have 18 months from closing to file a refund application directly with the Ministry of Finance for the provincial portion. The Toronto MLTT refund has a similar 18-month window. The forms are:
- Provincial: Form 0489 — Ontario Refund of Land Transfer Tax for First-Time Home Buyers
- Toronto: MLTT First-Time Buyer Refund Application
Both are submitted by mail or online via the relevant ministry / city portal. Approval typically takes 6-12 weeks.
Always confirm the rebate appears on your statement of adjustments before closing. If you see the full LTT amount with no rebate line item, ask your lawyer to confirm before funds change hands.
Common mistakes to avoid
Buying with a non-first-time buyer parent
If a parent or relative co-signs and is added to title to help you qualify, that person's ownership status can affect the rebate. If they've owned a home before, the rebate is reduced proportionally to your ownership share (not eliminated, but limited to your percentage).
Not occupying as principal residence
The 9-month occupancy rule is enforced. If you flip the property or rent it out without ever moving in, the rebate must be repaid with interest. Document your move-in date.
Buying for an adult child
Buying a property to register in your name with the intent your adult child will live there does not qualify for the first-time buyer rebate — you'd be the legal owner, and presumably you've owned property before. The child must be on title for them to claim.
Assuming the new-build HST rebate is the same thing
The new-build HST rebate is a federal/provincial rebate on new-construction HST and is separate from the LTT rebate. Many first-time buyers qualify for both, but they're applied through different processes.
What happens to the rebate if you're buying outside Ontario
The Ontario first-time buyer rebate only applies to Ontario purchases. Other provinces have their own first-time buyer programs:
- British Columbia — Property Transfer Tax (PTT) exemption: full exemption up to $500,000, partial up to $835,000. See our BC first-time buyer guide.
- Prince Edward Island — exemption from the Real Property Transfer Tax for properties up to $200,000.
- Quebec — Welcome Tax (mutation tax) varies by municipality; some Montreal-area municipalities offer first-time buyer relief.
Alberta and Saskatchewan don't charge LTT at all, so no rebate is needed.
Common questions
Can I get the LTT rebate AND the federal Home Buyer's Plan AND the FHSA?
Yes — these are all separate programs and you can use them simultaneously. The LTT rebate offsets closing costs; the FHSA and Home Buyer's Plan help with down payment.
What if I'm building the house?
If you're buying a vacant lot and building, you can claim the rebate on the lot purchase if you intend to occupy the built home as your principal residence within 9 months of taking title.
What if I co-own with a friend who has owned before?
Your rebate is reduced to your percentage of ownership. If you own 50% and your friend (a previous owner) owns 50%, your rebate is capped at 50% of the max — $2,000 provincial + $2,237 MLTT for a Toronto purchase.
Does buying through a corporation qualify?
No. The first-time buyer rebate is only available to individuals buying personally. Corporate purchases don't qualify, even if you're a first-time buyer personally.
How do I prove I'm a first-time buyer if asked?
The Ministry of Finance may audit any claim. Keep records showing you've never owned a home and your spouse hasn't owned a home while you were together — this can be as simple as confirming you've never claimed homeowner deductions on past tax returns.
Bottom line
If you're a Canadian citizen or permanent resident over 18 who has never owned a home (and whose spouse also hasn't, while you've been spouses), you almost certainly qualify for the Ontario first-time buyer LTT rebate — up to $4,000 provincially, plus $4,475 in Toronto. On a typical $700,000 Toronto purchase that's $8,475 in real cash kept in your pocket at closing.
Run your exact numbers in the Ontario LTT calculator and use the affordability calculator to see what purchase price your income supports before you start shopping. For an overview of every closing cost: see closing costs in Ontario explained.