How much is the refund?
Ontario’s Ministry of Finance says the maximum first-time homebuyer refund is $4,000 for transfers on or after January 1, 2017. In practice, qualifying buyers pay no provincial land transfer tax on the first $368,000 of the price. Buyers of more expensive homes get the $4,000 maximum and pay the rest.
This refund covers Ontario’s land transfer tax only. If you buy in the City of Toronto, the city also charges its own municipal land transfer tax, which has separate rules and is not covered here.
What you would still pay
The provincial rates for 2026 are 0.5% up to $55,000, 1.0% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, 2.0% above $400,000, and 2.5% above $2,000,000 for homes with one or two single-family residences. Applied to common prices:
| Purchase price | Ontario land transfer tax | First-time buyer refund | You pay |
|---|---|---|---|
| $368,000 | $3,995 | $3,995 | $0 |
| $400,000 | $4,475 | $4,000 | $475 |
| $500,000 | $6,475 | $4,000 | $2,475 |
| $600,000 | $8,475 | $4,000 | $4,475 |
| $800,000 | $12,475 | $4,000 | $8,475 |
Ontario’s own example confirms the $400,000 figure: $275 + $1,950 + $2,250 = $4,475 before the refund.
Who qualifies
- You are at least 18 years old.
- You are a Canadian citizen or permanent resident. If not, you have 18 months after registration to become one and still apply.
- You have never owned a home, or an interest in a home, anywhere in the world.
- Your spouse has not owned a home anywhere in the world while they were your spouse.
- You move in as your principal residence within nine months of the transfer.
Eligible homes include detached and semi-detached houses, townhouses, condominium units, and duplexes, triplexes or fourplexes, among others. New and resale homes both qualify. If you buy with someone who is not a first-time buyer, such as a parent, the refund is reduced to match the share owned by the person who qualifies.
How to claim it
- At closing: your lawyer can claim the refund when the deed is registered electronically, so it comes off the tax owing right away.
- Afterwards: if it wasn’t claimed at registration, apply to the Ontario Ministry of Finance online within 18 months of registration. You will need the registered transfer, agreement of purchase and sale, statement of adjustments, proof you live there and proof of citizenship or permanent residence.
After closing: plan the mortgage
Closing costs eat into the cash you have left for prepayments in the first year. Once you know your mortgage amount and rate, use the calculator to see what an accelerated biweekly schedule or a small monthly top-up would save over the life of the loan.
Frequently asked questions
How much is the Ontario land transfer tax rebate for first-time buyers in 2026?
Up to $4,000. Qualifying first-time buyers pay no Ontario land transfer tax on the first $368,000 of the price, and buyers of more expensive homes get the $4,000 maximum.
Who qualifies for the Ontario first-time homebuyer land transfer tax refund?
You must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and move in within nine months. Your spouse cannot have owned a home while they were your spouse.
How long do I have to apply for the refund?
If the refund was not claimed when the deed was registered, you must apply to the Ontario Ministry of Finance within 18 months of registration.
Does the Ontario refund cover Toronto’s land transfer tax?
No. The Ontario refund applies to the provincial land transfer tax. The City of Toronto charges its own municipal land transfer tax with separate rules.
Try it with your numbers
Open the free calculator, enter the balance, rate and amortization from your own mortgage statement, then switch the payment frequency or add an extra monthly amount. It uses the same Canadian semi-annual compounding as the examples on this page.
Related guides
Sources
- Ontario.ca: Land transfer tax refunds for first-time homebuyers
- Ontario.ca: Calculating land transfer tax
- Ontario.ca: Land transfer tax
Checked October 8, 2026. Rules and rates change, so confirm with your lender or the official page before you act.