Key takeaways
- Ontario refunds up to $4,000 of land transfer tax; Toronto rebates up to $4,475 more
- BC exempts the tax on the first $500,000 (up to $8,000) for homes worth up to $835,000, phased out by $860,000
- BC also exempts newly built homes up to $1.1 million, for any citizen or permanent resident
- PEI exempts eligible first-time buyers from its 1% transfer tax
- You must never have owned a home anywhere in the world, including outside Canada
First-time buyer land transfer tax programs
| Program | Maximum saving | Price limit |
|---|---|---|
| Ontario land transfer tax refund | $4,000 | None (full refund up to about $368,333) |
| Toronto MLTT first-time purchaser rebate | $4,475 | None (full rebate up to $400,000) |
| BC first-time home buyers’ exemption | $8,000 | Full to $835,000; partial to $860,000 |
| BC newly built home exemption | Full tax | Full to $1,100,000; partial to $1,150,000 |
| PEI first-time buyer exemption | Full 1% tax | Check with PEI |
Alberta, Saskatchewan, Newfoundland and Labrador and the territories have no land transfer tax, so there is nothing to rebate. Manitoba, New Brunswick and Quebec have no general first-time buyer rebate on their transfer tax. Some Nova Scotia and Quebec municipalities run their own programs.
Who counts as a first-time buyer?
Each program has its own rules. In general you must:
- Never have owned a home, or an interest in a home, anywhere in the world. A flat you own in your home country counts.
- Live in the home as your main residence (within 9 months in Ontario; within 92 days for BC’s newly built exemption).
- Be 18 or older (Ontario).
In Ontario, if your spouse owned a home while you were together, you may not qualify for the full refund.
Rules for newcomers
- Ontario: you must be a Canadian citizen or permanent resident. If you are not yet one when you buy, you have 18 months after closing to become one and then apply for the refund.
- BC first-time buyers’ exemption: you must be a citizen or permanent resident, and have lived in BC for 12 months in a row just before buying, or filed at least 2 BC tax returns in the last 6 years.
- BC newly built home exemption: citizens and permanent residents qualify; there is no first-time buyer or 12-month rule.
If you are not a citizen or permanent resident, check the foreign buyer ban and taxes before you make an offer.
Worked example: BC
You buy an $850,000 resale home in BC.
- Property transfer tax: 1% of $200,000 + 2% of $650,000 = $15,000.
- The price is between $835,000 and $860,000, so the exemption is partial: $8,000 × ($860,000 − $850,000) ÷ $25,000 = $3,200.
- You pay $11,800.
At $830,000 you would get the full $8,000 exemption and pay $6,600. If the home were newly built, you would pay nothing up to $1.1 million.
Federal help for first-time buyers
On top of provincial relief, first-time buyers can use federal programs anywhere in Canada:
- First Home Savings Account (FHSA): save up to $8,000 a year tax-free. Try our FHSA calculator.
- Home Buyers’ Plan: withdraw RRSP savings to buy a home and repay over 15 years.
- Home buyers’ amount: a non-refundable tax credit when you file your return.
- 30-year mortgage amortization on insured mortgages for first-time buyers.
To plan the full cost of buying, use the closing costs calculator.