Land transfer tax rebates for first time homebuyers
December 2021 – 15 min read
Land transfer tax rebates are available to help first-time buyers with the cost of home ownership.
These rebates are available in Ontario, British Columbia, Prince Edward Island, and the City of Toronto.
Provided you meet the criteria set out by each province or municipality, you could receive a partial or full land transfer tax refund.
Sonny and Meera are purchasing their first home in Toronto, Ont. Their home costs $850,000, and they qualify to receive a rebate from both the province ($4,000) and the city ($4,475). The total land transfer tax is $18,475, but after receiving their full rebate amount of $8,475, the amount left to pay comes to $10,000.If you’re buying with a spouse who is not a first-time buyer in Toronto, you can apply for a partial rebate of 50%.
Other programs and incentives
The land transfer tax rebate is one of many different first-time homebuyer programs and benefitsOpens in a new window that are available:
The First-time homebuyer incentive (FTHBI)
Provided by the Canada Mortgage and Housing Corporation (CMHC), the programOpens in a new window offers eligible homebuyers a shared-equity mortgage with the Canadian government.
The first time homebuyer credit
Known as the HBTCOpens in a new window, this offers first-time buyers a $5,000 non-refundable income tax credit.
The GST/HST New Housing Rebate
This rebate allows you to claim back some of the GST or the federal HST you paid for your new home.
Making the most of the rebates and benefits available to you can help you with the cost of purchasing your first home.
The above example is for illustrative purposes only. Situations will vary according to specific circumstances. This material is for information purposes only and shouldn’t be construed as providing legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. All comments related to taxation are general in nature and are based on current Canadian tax legislation and interpretations for Canadian residents, which are subject to change. For individual circumstances, consult with your tax, legal or accounting professionals. This information is provided by The Canada Life Assurance Company and is current as of date of publication.