Ontario Programs

Ontario is the most expensive province for land transfer taxes, but it also offers some of the most valuable rebates for first-time buyers. If you are buying your first home in Ontario, understanding these programs can save you thousands of dollars at closing and on your tax return.

Ontario Land Transfer Tax (LTT)

Ontario charges a provincial land transfer tax on every property purchase. This tax is calculated on a tiered system based on the property’s purchase price:

Home Value Portion	Tax Rate
First $55,000	0.5%
$55,001 to $250,000	1.0%
$250,001 to $400,000	1.5%
$400,001 to $2,000,000	2.0%
Over $2,000,000	2.5%

The land transfer tax is paid at closing and is one of the largest closing costs Ontario buyers face. On a $600,000 home, the provincial LTT would be approximately $8,475. On an $800,000 home, it climbs to roughly $12,475.

Ontario LTT Rebate for First-Time Buyers

First-time home buyers in Ontario can receive a rebate of up to $4,000 on the provincial land transfer tax. This rebate is applied at closing, reducing the amount of LTT you need to pay out of pocket.

How the Rebate Works

The $4,000 maximum rebate covers the full land transfer tax on homes priced up to approximately $368,000. For homes priced above that, you receive the maximum $4,000 rebate but still pay the difference.

Worked Examples

Home priced at $350,000:

Provincial LTT: $3,725
First-time buyer rebate: $3,725 (covers the entire tax)
You pay: $0 in provincial LTT

Home priced at $500,000:

Provincial LTT: $6,475
First-time buyer rebate: $4,000
You pay: $2,475 in provincial LTT

Home priced at $700,000:

Provincial LTT: $10,475
First-time buyer rebate: $4,000
You pay: $6,475 in provincial LTT

Eligibility Requirements

To qualify for the Ontario LTT rebate, you must meet all of the following:

You must be at least 18 years old
You must be a Canadian citizen or permanent resident
You must not have owned a home (or had an interest in a home) anywhere in the world at any time
Your spouse or common-law partner must also not have owned a home while they were your spouse or partner
You must occupy the home as your principal residence within 9 months of the purchase date

Toronto Municipal Land Transfer Tax (MLTT)

Toronto is one of the only cities in Canada that charges its own municipal land transfer tax on top of the provincial LTT. This means buyers in Toronto pay two land transfer taxes — one to Ontario and one to the City of Toronto.

The Toronto MLTT rates mirror the provincial rates:

Home Value Portion	Tax Rate
First $55,000	0.5%
$55,001 to $250,000	1.0%
$250,001 to $400,000	1.5%
$400,001 to $2,000,000	2.0%
Over $2,000,000	2.5%

Toronto MLTT Rebate for First-Time Buyers

First-time buyers in Toronto can receive a rebate of up to $4,475 on the municipal land transfer tax. This rebate has a higher maximum than the provincial rebate, reflecting the additional tax burden Toronto buyers face.

Combined Savings in Toronto

If you are a first-time buyer purchasing in Toronto, you can claim both the provincial and municipal rebates:

Rebate	Maximum Amount
Ontario Provincial LTT Rebate	$4,000
Toronto Municipal LTT Rebate	$4,475
Combined Maximum Savings	$8,475

Worked Example: $700,000 Condo in Toronto

Provincial LTT: $10,475
Provincial FTHB rebate: -$4,000
Provincial LTT owing: $6,475
Toronto MLTT: $10,475
Toronto FTHB rebate: -$4,475
Municipal LTT owing: $5,600 (assuming partial rebate applies)
Total LTT without rebates: $20,950
Total LTT with rebates: approximately $12,475
Total savings: approximately $8,475

Even with both rebates, a first-time buyer purchasing a $700,000 home in Toronto still pays over $12,000 in combined land transfer taxes. This is a significant closing cost that must be planned for — see the all programs comparison table to understand how Ontario stacks up against other provinces. For a $1,000,000 home, the combined LTT before rebates exceeds $32,000.

Ontario HST Rebate on New Homes

For buyers purchasing newly constructed homes in Ontario, there is a provincial HST rebate worth up to $24,000. This is in addition to the federal GST rebate of up to $6,300.

How It Works

Ontario’s provincial HST rate is 8%. For qualifying new homes, buyers can claim back 75% of the provincial HST component, up to a maximum rebate of $24,000. The rebate applies to new homes priced up to $400,000, with the full $24,000 available on homes priced at $400,000. For homes above $400,000, the rebate remains at $24,000 (it does not increase with price, but it is also not clawed back).

Combined Federal + Provincial Rebates on New Construction

Rebate	Maximum Amount
Federal GST Rebate	$6,300
Ontario Provincial HST Rebate	$24,000
Combined Maximum	$30,300

For new builds, this combined rebate is substantial. Builders often incorporate the rebate into the purchase price, so ask whether the listed price includes or excludes the HST rebate. This affects how much you actually need to bring to the table.

Other Ontario Considerations for First-Time Buyers

Ontario Energy and Property Tax Credit

Low- to moderate-income Ontario residents may qualify for the Ontario Energy and Property Tax Credit, delivered through the Ontario Trillium Benefit. This credit can provide up to $1,194 per year (amount varies by income) to help offset property taxes and energy costs. You claim it on your annual tax return.

Ontario Home Ownership Savings Plan (Historical)

Ontario used to offer a provincial Home Ownership Savings Plan (OHOSP), but this program has been discontinued. It is sometimes still referenced in older guides, so be aware that it is no longer available.

Municipal First-Time Buyer Programs

Some Ontario municipalities offer their own first-time buyer incentives beyond the provincial programs. Check with your local municipality for any current programs, particularly in cities like Ottawa, Hamilton, London, and Kitchener-Waterloo, which have periodically offered grants or down payment assistance for qualifying buyers.

Next: British Columbia Programs

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