Ontario Land Transfer Tax Refund for First-Time Buyers (2027)

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 11 min read — Who qualifies for Ontario’s $4,000 first-time buyer land transfer tax refund, how to claim it, and how Toronto’s $4,475 rebate stacks on top.

This guide is for first-time buyers anywhere in Ontario who want to know exactly how much land transfer tax they will get back in 2027, whether they qualify, and how the claim is made. I also cover the cases that trip people up, like buying with a parent or a partner who has owned before.

How much is the Ontario land transfer tax refund for first-time buyers in 2027?

The maximum refund is $4,000. Ontario’s Ministry of Finance says that for transfers on or after 1 January 2017, a qualifying first-time buyer pays no provincial land transfer tax on the first $368,000 of the price. If your home costs more than that, you still pay tax on the rest, minus the $4,000 refund.

Land transfer tax (LTT) is a one-time tax the buyer pays to the province when the purchase closes. It is charged in slices, or brackets. Each rate applies only to the part of the price inside its bracket:

• 0.5% on the first $55,000
• 1.0% from $55,000 to $250,000
• 1.5% from $250,000 to $400,000
• 2.0% from $400,000 to $2,000,000
• 2.5% above $2,000,000, for homes with one or two single-family residences

The refund amount has not changed since 2017, while prices have risen a lot. So for most GTA buyers the refund covers only part of the bill. As of November 2026, the province has not announced any increase to the $4,000 limit.

Who qualifies as a first-time home buyer for the Ontario refund?

The Ministry of Finance sets out these tests. You must meet all of them:

• Age: you are at least 18.
• Never owned: you have never owned a home, or any share of a home, anywhere in the world, at any time. It does not matter how you got it. A home you inherited or received as a gift counts as ownership.
• Your spouse: if you have a spouse, they cannot have owned a home anywhere in the world while they were your spouse. If they did, neither of you gets a refund.
• Status: you are a Canadian citizen or permanent resident. If you are not yet, you have 18 months after the purchase is registered to gain that status and then apply.
• Living there: you move in and make it your principal residence within nine months of the transfer.

Two points surprise people. First, you cannot qualify twice. Once you have owned, you are out for good, even if you sold years ago. Second, the province warns that its rule can differ from federal programs such as the Home Buyers’ Plan, which uses a different definition of a first-time buyer. Qualifying for one does not mean you qualify for the other.

Who counts as a spouse?

The province uses the definition in section 29 of Ontario’s Family Law Act. That covers married couples, and also unmarried couples who have lived together continuously for at least three years, or who live together in a relationship of some permanence and are the parents of a child together. If you have been living with a partner for two years and you have no children together, they are generally not your spouse for this test.

What homes are eligible for the refund?

Both new and resale homes qualify, as long as the agreement was signed after 13 December 2007. The province’s list of eligible homes includes:

• detached and semi-detached houses, and townhouses
• condominium units
• a duplex, triplex or fourplex
• shares in a housing co-operative bought to live in a unit
• mobile and factory-built homes that meet the listed standards and can be lived in all year
• a share of a property held as a tenant in common, bought so you can live in a unit there

On a new home, Ontario’s guidance says the HST is not part of the value used to calculate land transfer tax. That helps a little on a new build. For the bigger new-home savings, see my guide to the First-Time Home Buyers’ GST rebate.

How much land transfer tax will you pay after the refund?

Here is the Ontario tax at real 2026 median sold prices across the GTA, before and after the full $4,000 refund. These prices are outside Toronto, so only the provincial tax applies.

Source: Prices are median sold prices from TRREB MLS data via REALM, January to October 2026. Tax calculated from Ontario Ministry of Finance rates and refund rules.

Notice the pattern. Above about $400,000, every buyer gets the same $4,000 back, so the refund matters less the more you spend. It is still real money, and it is cash you do not need on closing day.

Do Toronto buyers get a second rebate from the city?

Yes. Inside the City of Toronto you pay a second tax, the municipal land transfer tax (MLTT), on top of the Ontario tax. The City offers its own first-time buyer rebate of up to $4,475. That equals the full city tax on the first $400,000 of the price.

The City’s rules mirror the province’s: 18 or older, never owned a home anywhere in the world, a spouse who has not owned while your spouse, citizen or permanent resident (or within 18 months), and you must live there within nine months. The rebate applies to new and resale homes, but not to commercial, industrial or multi-residential property.

Source: Prices from TRREB MLS data via REALM, January to October 2026 (Toronto district medians). Tax from Ontario Ministry of Finance and City of Toronto rate tables.

The most a first-time buyer can get back in Toronto is $8,475 combined. For the full bracket tables and the April 2026 luxury rates, read my Toronto land transfer tax guide.

How do you claim the land transfer tax refund at closing?

In most cases you do nothing yourself. Your real estate lawyer claims the refund when they register the transfer. In Ontario’s electronic land registration system, the lawyer completes the first-time buyer statements in the land transfer tax affidavit. The refund is then simply taken off the tax you owe, so you never pay it in the first place.

To make that happen, tell your lawyer early that you are a first-time buyer. They will ask you to confirm you meet each test, and they will want proof of citizenship or permanent residence. In Toronto, the lawyer claims the city rebate the same way. My guide to what a real estate lawyer does in Ontario explains the rest of their job.

What if you missed the refund on closing day?

You can still apply afterwards. If the refund was not claimed at registration, you pay the full tax and then send a claim to the Ministry of Finance. The deadline is 18 months after the transfer was registered. You can apply online through the ministry’s portal without a login, or by email, fax or mail. The province does not pay interest on these refunds.

The ministry asks for:

• a copy of the registered transfer (deed)
• the agreement of purchase and sale, with all schedules and amendments
• the statement of adjustments, if you have one
• proof you live there, such as a phone, internet or cable bill, a credit card statement, a driver’s licence or moving bills
• proof of Canadian citizenship or permanent residence

Be careful with proof of address. The province says utility bills and home insurance are not accepted as proof you live there. The City of Toronto also says utility and property tax bills are not accepted for its rebate.

In Toronto, a late rebate goes to the City, not the province, with its own forms. It is also due within 18 months. The City charges a refund fee of $221.22 on rebate requests made after registration, so claiming at closing is cheaper.

What happens if you buy with a parent, partner or spouse?

The refund is shared in proportion to the ownership held by the people who qualify. Ontario gives these examples:

• Parent and child, 50/50: if the parent has owned before and the child has not, the child can claim half the maximum, so up to $2,000.
• Parent on title only for the bank: you must pay the tax at registration and then apply to the ministry. If the parent holds title only as a trustee for the child, the child may still get the full refund. You will need proof, such as a letter from the bank or a trust agreement.
• Unmarried partners who are not spouses: the partner who has never owned can claim a refund based on their share.
• Spouses where one owned before the relationship: if the earlier ownership ended before you became spouses, the first-time buyer can claim for both shares, up to the $4,000 maximum, as long as both are citizens or permanent residents.

These cases are where most mistakes happen, so ask your lawyer how title should be held before you sign the offer. If family money is part of the plan, my guide to a gifted down payment covers what lenders need.

Is anything changing with the refund in 2027?

As of November 2026, the refund amount and the rules above are unchanged. The only proposal in the province’s October 2026 fiscal update is the higher $10,000 penalty for false or misleading refund applications, plus technical changes such as allowing documents to be served by email. Proposals need to pass into law before they take effect.

The bigger 2027 savings for first-time buyers sit elsewhere, mainly in the HST and GST rebates on new homes. My list of every first-time buyer program in Ontario shows how they stack.

What to do next

1. Check each test: age, never owned anywhere, your spouse’s history, citizenship or PR, and moving in within nine months.
2. Work out your tax at your target price, then subtract $4,000 (and $4,475 more if you are buying in Toronto).
3. Tell your lawyer you are a first-time buyer when you hire them, and decide with them how title will be held.
4. Keep proof of your new address that the province accepts, such as a phone or internet bill or your updated driver’s licence.
5. If the refund was missed, apply within 18 months of registration.

Frequently asked questions

Sources

• Ontario Ministry of Finance: Land Transfer Tax Refunds for First-Time Homebuyers
• Ontario Ministry of Finance: Calculating Land Transfer Tax
• Ontario Ministry of Finance: Land Transfer Tax
• City of Toronto: MLTT and MNRST Rebate Opportunities
• City of Toronto: MLTT and MNRST Rates and Fees
• 2026 Ontario Economic Outlook and Fiscal Review: Annex, Details of Tax Measures

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• Is It a Good Idea to Buy a Condo in Toronto in 2027?
• Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
• Can You Buy a House With No Down Payment in Ontario?