First-Time Home Buyer Land Transfer Tax Rebate: Province-by-Province Guide

Land transfer tax can be one of the largest surprise costs when buying a home in Canada — but first-time buyers in several provinces can recover thousands of dollars through rebates. This guide covers every province's first-time buyer program, the eligibility rules, maximum savings, and exactly how to claim what you're owed.

Why First-Time Buyer LTT Rebates Matter

On a $700,000 home in Toronto, a first-time buyer would owe roughly $20,450 in combined land transfer tax before rebates. With the maximum Ontario + Toronto rebates ($8,475), that bill drops to $11,975. That's $8,475 that stays in your pocket for furniture, emergency repairs, or an emergency fund.

Yet many first-time buyers don't claim their full rebate — either because they don't know about it, misunderstand the eligibility rules, or have a co-buyer who disqualifies part of the claim.

Ontario First-Time Home Buyer Rebate

Eligibility Requirements

• Must be a Canadian citizen or permanent resident
• Must be at least 18 years old
• Must not have previously owned a home anywhere in the world
• Property must be your principal residence within 9 months of purchase
• Cannot have a spouse or common-law partner who previously owned a home (while being your spouse/partner)

How the Rebate Is Applied

The Ontario rebate equals the LTT you would otherwise owe, up to a maximum of $4,000. For purchases under ~$368,000, this means you pay $0 in Ontario LTT. For purchases above this, you pay the LTT minus $4,000.

Toronto Municipal First-Time Buyer Rebate

If your property is within the City of Toronto boundaries, you can also claim the municipal rebate on top of the provincial one:

British Columbia First-Time Buyer Exemption

BC offers one of the most generous first-time buyer programs in Canada — a full exemption from the Property Transfer Tax (PTT) for eligible properties:

• Full exemption: Properties valued up to $500,000 — pay $0 in PTT
• Partial exemption: Properties from $500,000–$525,000 receive a proportional rebate
• No exemption: Properties over $525,000 — full PTT applies
• Exemption amount: On a $499,000 property, you save approximately $7,960

Other Province Programs

Co-Buyer Rules: When One Partner Has Owned Before

This is the area where buyers most often miss savings. If you and a partner are buying together:

• Both first-time buyers: Full rebate applies to 100% of the purchase price.
• One first-time buyer, one previous owner: The rebate is proportional to the first-time buyer's ownership share. If you're buying 50/50 and only you qualify, you receive 50% of the maximum rebate — in Ontario, up to $2,000 provincial + $2,237.50 Toronto.
• Both previous owners: No rebate.

How to Claim the Rebate

You don't have to do anything special to claim the LTT rebate — your real estate lawyer handles it at closing. They will:

1. Calculate the gross LTT owing
2. Apply the FTHB rebate(s) you qualify for
3. Collect only the net amount at closing
4. Submit the rebate application to the provincial and/or municipal government on your behalf

Make sure to tell your lawyer that you're a first-time buyer before closing — they need to confirm your eligibility and apply the correct rebate amount.

Frequently Asked Questions

Does the definition of "first-time buyer" include inherited properties?

In Ontario, if you inherited an interest in a property (even a small one) and it was registered in your name, you may be disqualified from the FTHB rebate. Inheriting a property is considered "owning" for LTT rebate purposes. Consult your lawyer to confirm your specific situation.

Can I get the rebate if I've owned property outside Canada?

No. The Ontario and Toronto FTHB rebates require that you have never owned a home "anywhere in the world." If you owned property in another country before coming to Canada, you do not qualify.