In some provinces and cities, there is a rebate available to help first-time homebuyers offset the cost of their land transfer tax. If you qualify, land transfer tax rebates are available to first-time homebuyers in the provinces of Ontario, British Columbia, and Prince Edward Island. There is also a land transfer tax rebate available for first-time homebuyers in the city of Toronto. Here’s how each province and city’s rebate works:
| Region | Ontario | Toronto | British Columbia | Prince Edward Island |
|---|---|---|---|---|
| Maximum rebate | $4,000 | $4,4751 | $8,000 | $2,000 |
| Rebate will cover LTT to a maximum home value of | $368,333 | $400,000 | $500,000 | $200,000 |
| Partial refund available? | 50% refund if spouse does not qualify | 50% refund if spouse does not qualify | Partial refund for homes valued between $500,001 - $524,999 | No |
Ontario Land Transfer Tax Rebate
First-time homebuyers in Ontario can qualify for a rebate equal to the full amount of their land transfer tax, up to a maximum of $4,000.
To qualify for the Ontario Land Transfer Tax Refund for First-Time Homebuyers, you must meet the following criteria:
You must be a Canadian citizen or permanent resident of Canada,
You must be 18 years of age or older,
You must live 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.
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. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.
If you qualify, your real estate lawyer will help you file the necessary paperwork. You can either file for your land transfer tax rebate electronically, or download the Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes here. For more information, visit the Land Transfer Tax Refund for First-Time Homebuyers website.
Toronto Land Transfer Tax Rebate
First-time homebuyers who live in the City of Toronto can qualify for a rebate equal to the full amount of their municipal land transfer tax, up to a maximum of $4,475. This rebate applies whether you're buying a Toronto townhouse, house or condo. You can also qualify for the Ontario rebate in addition to the Toronto rebate.
To qualify for the Toronto Municipal Land Transfer Tax Rebate for First-Time Purchasers, you must meet the following criteria:
You must be a Canadian citizen or permanent resident of Canada,
You must be 18 years of age,
You must live 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.
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. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.
If you qualify, your real estate lawyer will claim the rebate electronically through Teraview when he/she registers your transfer/deed. For more information, visit the Municipal Land Transfer Tax Rebate website.
British Columbia Land Transfer Tax Rebate
First-time homebuyers in British Columbia can qualify for a rebate equal to the full amount of their property transfer tax, up to a maximum of $8,000.
To qualify for the British Columbia First Time Home Buyers’ Program, you must meet the following criteria:
You must be a Canadian citizen or a permanent resident of Canada,
You must have lived in B.C. for 12 consecutive months immediately before you registered your property, or you must have filed two income tax returns in B.C. in the past six years,
You cannot have owned a home before, and
You must not have received a first-time homebuyers’ exemption or refund before.
Based on the British Columbia property transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $500,000. For homes with purchase prices between $500,001-$524,999, homebuyers will only qualify for a partial rebate. If the home is purchased for $525,000 or more, no rebate is available and the full tax amount will be due.
If you qualify, your real estate lawyer will help you complete the First Time Home Buyers’ Property Transfer Tax Return form when he/she registers the property transfer. For more information, visit the First Time Home Buyers’ Program website.
Prince Edward Island Land Transfer Tax Rebate
First-time homebuyers in Prince Edward Island can qualify for an exemption equal to the full amount of their property transfer tax, up to a maximum of $2,000.
To qualify for the Real Property Transfer Tax First-Time Home Buyers Exemption, you must meet the following criteria:
You must be 18 years of age,
You must be a Canadian citizen or a permanent resident of Canada,
You must have lived in PEI for 6 consecutive months immediately before you registered your property, or you must have filed two income tax returns in PEI in the past six years,
You cannot have owned a home before, and
You must not have received a first-time homebuyers exemption before.
Based on the Prince Edward Island property transfer tax rate (1%), the exemption will cover the full tax amount up to a maximum home purchase price of $200,000. If the home is purchased for more than $200,000, no rebate is available and the full tax amount is due. And if your home is purchased for $30,000 or less, no property transfer tax is due at all.
To apply for your property transfer tax exemption, download and submit the First Time Home Buyers Declaration form. For more information, visit the Real Property Transfer Tax First-Time Home Buyers Exemption website.