Ontario Programs

Quick Answer

What first-time home buyer programs exist in Ontario?

Ontario first-time buyers can claim a provincial land transfer tax rebate up to $4,000, a Toronto municipal LTT rebate up to $4,475 (if buying in Toronto), plus federal programs (FHSA, RRSP HBP, HBTC). New builds may qualify for Ontario's full HST exemption on homes up to $1M (Bill 114, April 2026–March 2027, up to ~$130,000 savings).

• Provincial LTT rebate: maximum $4,000 for qualifying FTHBs
• Toronto MLTT rebate: up to $4,475 on municipal tax
• Stack with federal FHSA ($40K) and HBP ($60K per person)

Source: Government of Ontario

If you are a first-time home buyer in Ontario, this province offers some of the most valuable rebates in Canada — but also the highest land transfer taxes. Ontario is the most expensive province for land transfer taxes, yet first-time buyers can claim rebates that save thousands at closing. Understanding these programs can save you thousands of dollars at closing and on your tax return.

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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.

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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

Caution

The Ontario LTT rebate must be claimed at the time of closing through your real estate lawyer. It is not something you can claim after the fact on your tax return. Make sure your lawyer is aware that you are a first-time buyer and applies for the rebate as part of the closing process. If your lawyer does not apply for it, you lose the rebate.

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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.

Tip

If you are buying just outside the City of Toronto — in Mississauga, Brampton, Markham, Vaughan, or other neighbouring municipalities — you avoid the Toronto municipal land transfer tax entirely. You still pay the provincial LTT, but you save the entire municipal portion. On a $700,000 home, buying outside Toronto saves you approximately $10,475 in municipal LTT (before any rebates). This is a significant factor to consider when comparing homes on either side of the Toronto city boundary.

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Ontario HST Exemption on New Homes

Ontario passed legislation — Bill 114 (More Homes Built Faster Act, 2026), Royal Assent May 2026 — to eliminate the full 13% HST (both federal and provincial portions) on new home purchases. Combined with the federal GST elimination (Bill C-4, Royal Assent March 12, 2026), the complete HST exemption is now confirmed law in Ontario.

Key facts:

• Applies to all buyers — not limited to first-time buyers
• Covers purchase agreements signed April 1, 2026 to March 31, 2027
• Eligible for new homes (and substantially renovated homes) priced up to $1,500,000
• Full exemption on homes priced up to $1,000,000; partial exemption between $1M and $1.5M
• Maximum savings: $130,000 on a $1,000,000 home

How It Works

For qualifying buyers purchasing a new home priced at $1 million or less:

• The federal 5% GST is eliminated (Bill C-4, Royal Assent March 12, 2026)
• The Ontario provincial 8% HST portion is also eliminated (Bill 114, Royal Assent May 2026)
• Combined, this removes the full 13% HST from the purchase price

New Home Price	HST Without Exemption	HST With Full Exemption	Savings
$500,000	$65,000	$0	$65,000
$750,000	$97,500	$0	$97,500
$1,000,000	$130,000	$0	$130,000

For homes priced between $1 million and $1.5 million, partial HST relief applies. Homes above $1.5 million receive no exemption.

Tip

The savings of up to $130,000 on a $1 million new home dwarf all other provincial programs combined. This benefit applies to all buyers — not just first-time buyers — for agreements signed between April 1, 2026 and March 31, 2027. Confirm with your builder that the purchase agreement is dated within this window and ask whether the listed price is before or after the HST exemption.

Previous Ontario HST Rebate (for Non-Qualifying Purchases)

The previous Ontario provincial HST rebate (75% of the provincial portion, capped at $24,000 on homes up to $400,000) continues to apply to new builds that do not qualify for the full exemption — for example, purchases outside the April 2026–March 2027 agreement window or homes above $1.5M.

Combined Savings on New Construction

Rebate / Exemption	Qualifying Buyer (Apr 2026–Mar 2027)	Other Buyer
Federal GST (5%)	Full exemption (≤$1M) — confirmed law (Bill C-4)	Up to $6,300 rebate
Ontario provincial HST (8%)	Full exemption (≤$1M) — confirmed law (Bill 114)	Up to $24,000 rebate
Combined maximum	Up to $130,000	Up to $30,300

For new builds, builders often incorporate tax treatment into the purchase price, so ask explicitly whether the listed price is before or after the HST exemption.

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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.

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Sources: Ontario — Land Transfer Tax · Ontario — First-Time Buyer Refund · City of Toronto — MLTT · CRA — GST/HST New Housing Rebate

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