Land Transfer Tax Rebate For Canadian Home Buyers

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Land Transfer Tax Rebate For Canadian Home Buyers

Post: # 47715Post Flipping4Profit.ca
Wed Apr 10, 2019 5:07 pm

Land Transfer Tax Rebate For Canadian Home Buyers

If you’re a first-time homebuyer (FTHB) in Ontario, British Columbia,
or Prince Edward Island, you may be eligible to receive a land transfer tax (LTT) rebate.

The eligibility requirements and rebates differ by region.


If you’re a first-time home buyer, there are more programs available for you to
take advantage of! For example, there is a First-Time Home Buyers’ Tax Credit
worth up to $750, and the First-Time Home Buyers’ Plan (HBP) that allows each
FTHB to withdraw up to $25,000 tax-free.

Ontario first-time homebuyer land transfer tax rebate

If you’re buying your first home in Ontario, you may be eligible for a land transfer
tax rebate equal to the full cost of your LTT1, up to $4,000.
You are eligible if:

You’re at least 18 years of age.
You occupy the home as your principal residence within nine months of the closing date.
You’ve never owned a home before, anywhere in the world.
Your spouse has not owned a home while being your spouse.

You must apply for this refund within 18 months after the date of the transfer.
Your lawyer typically applies for it on your behalf and it is an immediate rebate on closing day.

Toronto first-time homebuyer land transfer tax rebate


In Toronto, first-time homebuyers are able to receive a refund of their
municipal land transfer tax2, up to $4,475.

You are eligible if:

You’re at least 18 years of age.
You occupy the home as your principal residence within nine months of the closing date.
You’ve never owned a home before, anywhere in the world.
Your spouse has not owned a home while being your spouse.

You must apply for this refund within 18 months after the date of the transfer.
Your lawyer can claim the rebate through when they register your transfer or deed on closing day.
British Columbia first-time homebuyer land transfer tax rebate

If you’re a first-time homebuyer in BC,
you can take advantage of a tax exemption on your land transfer tax3, if:

You’re a Canadian citizen or permanent resident.
You’ve lived in BC for 12 consecutive months prior to the registration date, or you’ve filed two income tax returns in BC in the six years before registration.
You’ve never owned a home before, anywhere in the world.
You have not received a first-time homebuyer’s exemption or refund.
The home is located in BC and is only used as your principal residence.
The home has a fair market value of $475,000 or less if registered on or before February 21, 2017, or $500,000 or less if registered on or after February 22, 2017.
The property is 0.5 hectares or smaller.

PEI first-time homebuyer property transfer tax rebate

First-time homebuyers purchasing in PEI are exempt from paying land transfer tax4 if:

You’re a Canadian citizen or permanent resident.
You’ve lived in the province throughout a period of not less than six months immediately prior to the registration date, or have filed a tax return in at least two of the six taxation years immediately preceding the registration date or you’ve occupied the subject property as their principal residence for a period of six months following the registration of the deed.
You’ve never owned a home before, anywhere in the world.
You intend to use the property as your principal residence.

All purchasers of the property—if there is more than one—must be first-time homebuyers to receive the tax exemption.

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