Land Transfer Tax applies to all transfers of land in Ontario.
First-time homebuyers may be eligible for a refund of all or part of the tax.
- For agreements of purchase and sale entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home.
- For agreements of purchase and sale entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.
How much is the Refund?
The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue. No interest is paid on this refund.
Who Qualifies?
To claim a refund, you:
- must be at least 18 years of age;
- must occupy the home as your principal residence within 9 months of after the date of transfer; and
- cannot have owned a home, or an interest in a home, anywhere in the world.
In addition:
- your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse; and
- in the case of a newly constructed home, you must be entitled to a Tarion New Home Warranty.
How Do I Apply?
Qualifying taxpayers may claim an immediate refund at time of registration in one of two ways:
What is the application deadline?
- Applications for a refund must be made within 18 months after the date of the transfer.
If application was not made at registration and the tax was paid, qualified purchasers may apply for a refund by completing an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes and send it to the ministry.
For full details on the refund program, please see Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds for First-Time Homebuyers.
Refund for First-time Home Buyers
Do I qualify for the Land Transfer Tax Refund for First-Time Homebuyers if I signed my agreement of purchase and sale for my resale home on December 1, 2007?
No, the Land Transfer Tax Refund Program for First-Time Homebuyers of resale homes only applies to agreements of purchase and sale entered into after December 13, 2007.
First-time buyers who enter into an agreement of purchase and sale before December 14, 2007 may still be eligible for a land transfer tax refund, but only if the home is newly constructed.
For further information refer to Ontario Tax Bulletin LTT 1-2008–Land Transfer Tax Refunds For First-Time Homebuyers.
If a parent is also on title to a child's property at the insistence of the bank, is the child eligible for the refund as long as all of the other conditions are met?
In this situation, it will be necessary to pay land transfer tax at the time of registration and apply for a refund from the ministry.
If the parent did not acquire a beneficial interest in the property as a result of the conveyance:
- the ministry will accept the fact that the parent was on title as a trustee for the child, and
- the child would qualify for the newly constructed home refund, provided that evidence of the trust is submitted (e.g., a letter from the bank confirming that the parent is on title for mortgage purposes).
For further information refer to Ontario Tax Bulletin LTT 1-2005 – Conveyances Involving Trusts.
How do I apply for the refund of land transfer tax for first-time homebuyers?
Normally, upon registration, your lawyer will complete the appropriate tax statements in the electronic land registration system, and the refund will be deducted automatically from the land transfer tax that would otherwise be payable.
If this did not occur, after registration you can apply for the refund by submitting an application to the ministry consisting of the following documentation:
- completed Land Transfer Tax Refund Affidavit For First-Time Purchasers;
- copy of the registered conveyance;
- evidence of the amount of tax paid on registration;
- copy of the Agreement of Purchase and Sale (including all schedules and amendments);
- copy of the Statement of Adjustments; and,
- copy of the Tarion new home warranty certificate (if applicable).
For further information, refer to Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds For First-Time Homebuyers.
What are the requirements to qualify for the refund of land transfer tax for first-time homebuyers?
The requirements are as follows:
- The purchaser must be at least 18 years of age.
- The application for a refund must be made within 18 months after the date on which the conveyance or disposition occurred. (Note that an application for the refund can be completed upon the electronic registration of the conveyance).
- The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
- The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
- If the purchaser has 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 the purchaser's spouse. If this is the case, no refund is available to either spouse.
- The purchaser cannot have previously received an Ontario Home Ownership Savings Plan (OHOSP) based refund of land transfer tax.
- If the agreement of purchase and sale is entered into before December 14, 2007, the home must be newly constructed.
For further information refer to Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds For First-Time Homebuyers.
If you require additional assistance, please contact the Ministry of Revenue, Land and Resource Taxes section at 1 866 ONT-TAXS (1 866 668-8297).