Land Transfer Tax Rebate for First-Time Home Buyers


Provincial Land Transfer Tax Rebate:

  • Provincial Land Transfer Tax is payable anywhere in Ontario (including Toronto)
  • Maximum first-time buyer rebate is $4,000.
Toronto Land Transfer Tax Rebate:
  • Toronto Land Transfer Tax is payable only for properties in the City of Toronto.
  • Maximum first-time buyer rebate is $4,475.

Requirements: 

  • You cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
  • If you have a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world, while he or she was your spouse. If this is the case, no refund is available to either spouse.
  • You must be at least 18 years of age.
  • You must occupy the home as principal residence no later than 9 months after the date of closing.


RRSP Home Buyers' Plan

Up to $25,000 per person could be withdrawn tax-free from RRSPs to buy or build a principal residence. Couples, including common-law, will be able to withdraw up to $50,000.

Note: Budget 2019 proposes to increase the Home Buyers' Plan withdrawal limit to $35,000 per person. This would be available for withdrawals made after March 19, 2019.

Requirements:

  • You have to intend to occupy the qualifying home as your principal place of residence no later than one year after closing.
  • You have to meet the first-time buyer’s condition.  You are not considered a first-time home buyer if you or your spouse owned a home that you occupied as your principal place of residence in the past 5 years.
  • Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw.
  • Neither you nor your spouse can own the qualifying home more than 30 days before the withdrawal is made.
  • You have to be a resident of Canada.
  • You have to receive all withdrawals in the same calendar year.

Repayments:

  • A 15-year repayment period will begin in the second calendar year following the calendar year in which the withdrawal is made. In addition, a qualifying home must generally be acquired before October 1 of the calendar year following the year of withdrawal. For example, those making withdrawals under the plan in 2009 will have until October 1, 2010 to acquire a qualifying home and their first annual repayment will be due by the end of 2011 or the first two months of 2012.


First-Time Home Buyers’ Tax Credit

The First-Time Home Buyers’ Credit (FTHBC) provides a 15 percent credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes, etc.), meaning maximum tax relief of $750. 

Requirements:
  • You will be considered a first-time home buyer if neither you nor your spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.