First-Time Buyer Land Transfer Tax Rebate in Ontario

That last point matters for couples. If your partner owned a home while you were together, it can affect how much of the rebate you can claim, even if you personally have never owned. If you are unsure how your situation is treated, ask your real estate lawyer before closing.

For a fuller picture of the programs first-time buyers can stack, see our guide to first-time home buyer incentives in Ontario.

How and when is the rebate applied?

You do not usually pay the full tax first and wait for a cheque later. In most purchases, your real estate lawyer claims the rebate electronically when the property changes hands, so it is applied right at closing.

That means the rebate directly reduces the land transfer tax line on your closing statement. Instead of budgeting the full tax and then hoping for a refund, you simply pay the reduced amount (or nothing, if the rebate covers it all).

If for some reason the rebate is not applied at closing, you can typically apply afterward to get the money back, but the cleaner path is to make sure your lawyer handles it on closing day. Confirm this with them ahead of time.

Why the rebate matters for your cash at closing

Closing costs are the extra money you need on closing day beyond your down payment, and land transfer tax is often the biggest single item. Lowering it means you need less cash to close.

Think of the rebate as freeing up money you would otherwise have handed over in tax. That cash can stay in your savings for other closing costs, like legal fees and title insurance, or for the expenses that come right after you move in.

This is also where a Down Payment Boost from Zown can help. It is cash back of up to 1.25% of the purchase price, to a maximum of $25,000, paid into your savings at closing. Most buyers use it toward closing costs and post-closing expenses, so it stacks with the land transfer tax rebate to ease the cash crunch on closing day.

For more ways to bring down the upfront cost, see our guides to down payment assistance in Ontario and the minimum down payment in Ontario.

Frequently asked questions

Do I get the land transfer tax rebate automatically?

Not entirely on your own. Your real estate lawyer claims it for you, usually electronically at closing, so the reduced tax shows up on your closing statement. It is not automatic in the sense that you should confirm with your lawyer beforehand that they will apply it on closing day.

Can I claim both the Ontario and Toronto rebates?

Yes, if your home is in the City of Toronto. You can claim the provincial rebate of up to $4,000 and the municipal Toronto rebate of up to $4,475 at the same time, for a combined maximum of $8,475. Buyers outside Toronto claim only the provincial rebate.

What if my home costs more than $368,000?

You still receive the full rebate, up to $4,000 in Ontario, but it will not cover the entire land transfer tax on a higher-priced home. You pay the remaining tax as a closing cost. In most of the GTA, homes cost well above that point, so expect a partial offset rather than a full one.

Does the rebate go toward my down payment?

No. The land transfer tax rebate reduces a closing cost, it does not add to your down payment. It simply means you owe less tax on closing day, which leaves more cash in your savings for other closing and post-closing expenses.

What happens if I owned a home before?

If you have ever owned a home anywhere in the world, you generally are not eligible for the rebate. The same can apply if your spouse owned a home while you were together. Because the rules around spouses can be nuanced, confirm your specific situation with your real estate lawyer.

Do first-time buyers get any other help with closing costs?

Yes. The land transfer tax rebate is one piece. Programs like the FHSA and the RRSP Home Buyers' Plan help you save for the purchase, and a Down Payment Boost from Zown adds cash back at closing. Together these can meaningfully lower what you need on closing day.

See what your Down Payment Boost adds up to →

Last updated July 24, 2026. General information, not legal or financial advice.