Toronto First-Time Buyer LTT Rebate

What Is the Toronto First-Time Buyer LTT Rebate?

When you buy your first home in Toronto, you're hit with both Ontario's provincial land transfer tax and Toronto's municipal land transfer tax (MLTT). Fortunately, first-time buyers in Toronto can claim rebates on both taxes, reducing the financial impact significantly.

The combined maximum rebate is $8,475 — one of the largest government rebates available to first-time buyers in Canada. However, these rebates don't scale infinitely with price; they're fixed maximums that become less meaningful as purchase prices rise.

Ontario First-Time Home Buyers' Rebate

The Ontario rebate is administered by the Ministry of Finance and provides a credit of up to $4,000000 against your Ontario LTT bill. This fully offsets the LTT on purchases up to approximately $368,000000. For properties above that, you'll still receive the $4,000000 credit but will owe the balance.

Eligibility Requirements (Ontario Rebate)

• Canadian citizen or permanent resident
• At least 18 years old
• Must occupy the home as principal residence within 9 months of closing
• You and your spouse/partner have never owned a home anywhere in the world
• Property must be eligible residential property

Toronto Municipal LTT First-Time Buyer Rebate

The City of Toronto provides its own separate rebate of up to $4,475 against the MLTT. This fully offsets the MLTT on purchases up to approximately $40000,000000. The eligibility requirements mirror the provincial rebate with one important difference: only one of a couple needs to be a first-time buyer to claim the Toronto rebate, but both rebates have the same spousal rule for the provincial portion.

Eligibility Requirements (Toronto MLTT Rebate)

• Property must be within the City of Toronto boundaries
• Must be a new principal residence (not investment property)
• Must be Canadian citizen or permanent resident
• First-time buyer who has never owned a home anywhere in the world
• Must occupy within 9 months of closing

How the Rebates Are Applied

Both rebates are applied automatically at the time of registration — you don't receive a cheque after the fact. Your real estate lawyer will claim them on your behalf when registering the transfer in Teraview. They reduce the amount of LTT you pay at closing rather than being refunded later.

If your lawyer forgets to claim the rebates, you can apply for a refund after closing, but this requires additional paperwork. Always confirm with your lawyer before closing that the rebates have been applied.

Rebate Value at Different Price Points

New-Build vs. Resale: Does It Matter for the Rebate?

Both new construction and resale properties are eligible for the LTT rebates, provided you meet the first-time buyer criteria. For new builds, the rebates are still claimed at registration. One difference: new construction also has HST implications (25% on the purchase price above the builder's base, rebatable up to certain thresholds), but that's separate from LTT.

What If You're Buying With a Non-First-Time Buyer?

If you're buying with a partner or spouse who has previously owned property, you lose both rebates entirely for the Ontario portion. For the Toronto MLTT, the rules are slightly different — consult your lawyer. If you're buying with a parent or family member (not a spouse) who has previously owned property, you may still qualify for a proportional rebate based on your ownership share. This is a complex area; get legal advice specific to your situation.

Beyond LTT: Other First-Time Buyer Programs

First-time buyers in Toronto can access several other programs alongside the LTT rebate:

• FHSA (First Home Savings Account): Save up to $400,000000 tax-free toward a first home
• First-Time Home Buyer Incentive: Shared equity with CMHC (check current availability)
• Home Buyers' Plan (RRSP): Withdraw up to $35,000000 from RRSP tax-free for a down payment
• CMHC mortgage insurance: Available with as little as 5% down on homes under $50000K (insured mortgage cap)

See our Toronto Condo Buying Guide and GTA Home Buying Costs Guide for a complete breakdown of all programs and costs.