Purchase taxes
First-time buyer land transfer tax refund
By Bo Yu, Broker, Right at Home Realty, Brokerage · Verified/updated August 2026
Ontario refunds up to $4,000 of land transfer tax to qualifying first-time homebuyers. In practice it is not a cheque in the mail: your lawyer claims it electronically when the transfer is registered, so you simply send less money to closing.
$4,000 wipes out the tax entirely on a purchase up to about $368,000, and reduces it dollar-for-dollar above that.
- Who charges it
- It is a refund from the Government of Ontario, not a charge.
- Who normally pays
- Nobody — it reduces what the buyer owes.
- When it's paid
- Applied at registration on closing day, or claimed directly from the Ministry afterwards.
- Cash or financed
- It reduces the cash you need at closing.
- Typical range
- Up to $4,000
How it's calculated — and why it varies
The refund equals your Ontario land transfer tax, capped at $4,000. To qualify, all of the following must be true:
- You are at least 18 years old.
- You are a Canadian citizen or permanent resident (non-residents who become citizens or PRs within 18 months of closing can claim later).
- You occupy the home as your principal residence within nine months of the transfer.
- You have never owned an eligible home, or an interest in one, anywhere in the world.
- Your spouse has not owned an eligible home anywhere in the world while being your spouse.
- Where only one of two purchasers qualifies, the refund is reduced to that person's share of the property.
Exemptions, refunds and when it doesn't apply
- If your lawyer doesn't claim it at registration, you can apply directly to the Ministry of Finance — but you must apply within 18 months of registration.
- Owning a home previously anywhere in the world disqualifies you, even if it was outside Canada.
- This refund is separate from the federal first-time home buyers' GST/HST rebate on new builds and from the FHSA — you can use more than one.
- It does not apply to the Non-Resident Speculation Tax, which has its own rebate rules.
A real Ottawa example
A first-time buyer purchasing a $650,000 townhome in Findlay Creek owes $9,475 in land transfer tax. The refund knocks $4,000 off, so the lawyer's trust ledger shows $5,475.
The same buyer purchasing a $355,000 condo in Centretown owes $3,750 — under the cap, so the refund covers it in full and they pay nothing in land transfer tax.
How this shows up in the calculator
Tick "First-time buyer" in the calculator. The land transfer tax row switches to the after-refund amount and shows the refund applied beneath it, so your total cash-to-close drops by the same amount.
Open the calculatorCommon questions
- What if my partner owned a home before?
- If your spouse owned an eligible home while you were spouses, neither of you qualifies. If they owned it before you were spouses and no longer do, you may still claim your share.
- How late can I claim it?
- Within 18 months of registration. Most lawyers claim it automatically at closing, but confirm it in writing beforehand.
Official sources — verified/updated August 2026
Rules and rates change. These are the first-party pages this one was checked against; confirm anything that matters to your purchase directly with them.
Related buyer tools
Every figure on this page is a planning estimate for general information only, based on the assumptions shown, and are not legal, tax, mortgage or financial advice or an offer of credit. Actual rates, payments, taxes, fees and values vary — confirm the numbers with your lender, lawyer or accountant before relying on them. Full disclosures.
This page is general information about how a cost works in Ontario, not legal, tax, mortgage or accounting advice, and not a quote. Your lawyer, lender and accountant confirm what actually applies to your purchase.
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