Land transfer tax is due in cash on closing day, on top of your down payment. For a first-time buyer in Ontario the provincial rebate is one of the few programs that reduces that bill directly.
What the rebate does
- The rebate applies directly to the provincial land transfer tax, trimming a major chunk from your closing costs.
- Qualifying for it does not replace the need to save a down payment or pass the lender's checks.
- You can only claim the first-time buyer refund once, so confirm you are eligible before you count on it.
- It is a provincial program, separate from federal incentives and from any lender's own offers.
- It helps with upfront costs, but you remain responsible for every other closing and mortgage requirement.
- It is considered one of Ontario's main provincial supports for new homeowners entering today's market.
- Confirm your eligibility and make sure the paperwork is handled properly at the time of purchase; your lawyer usually claims it on closing.
Where to go from here
See the actual figure for the price you are considering with the land transfer tax calculator, then the closing costs calculator for everything else due on closing day. The first-time buyers page lists the other programs you may be able to stack with it.
This article is general information, not financial advice, and quotes no rates. Your situation may differ; speak with a licensed mortgage professional.