Ontario's land transfer tax refund for first-time buyers
Last reviewed October 30, 2026
Every buyer in Ontario pays land transfer tax when they register their purchase. First-time buyers can get up to $4,000 of it refunded, usually instantly at closing. And because London has no municipal land transfer tax (unlike Toronto), that's the only land transfer tax you'll pay.
Key facts
- Maximum refund
- $4,000
- Covers in full
- The tax on homes up to about $368,000
- Applies to
- Resale and new homes
- How to claim
- Usually by your lawyer at registration, or later by application
- Time limit
- If not claimed at registration, apply within 18 months
Source: Government of Ontario, Land transfer tax refunds for first-time homebuyers. Confirm current rules at ontario.ca.
How land transfer tax is calculated
Ontario's land transfer tax for a single-family home is calculated in brackets:
| Portion of the price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 (one or two single-family residences) | 2.5% |
Worked examples at London price points
| Purchase price | Land transfer tax | First-time buyer refund | You pay |
|---|---|---|---|
| $350,000 | $3,725 | $3,725 | $0 |
| $450,000 | $5,475 | $4,000 | $1,475 |
| $550,000 | $7,475 | $4,000 | $3,475 |
| $650,000 | $9,475 | $4,000 | $5,475 |
Calculated from the provincial brackets above for a single-family residence. Your lawyer will confirm the exact figure.
Who qualifies
To claim the refund, you generally must:
- Be at least 18 years old.
- Occupy the home as your principal residence within nine months of the date of transfer.
- Never have owned a home, or an interest in a home, anywhere in the world, at any time.
- Be a Canadian citizen or permanent resident.
The spouse rule
If you have a spouse, you can't claim the refund if your spouse owned a home anywhere in the world while they were your spouse. If your spouse owned a home before you were together and sold it before you became spouses, you may still qualify for your share.
Partial refunds
If you're buying with someone who doesn't qualify, such as a parent co-signing on title, the refund is reduced to your share of ownership.
Stricter than the federal programs. The FHSA and Home Buyers' Plan use a four-year look-back, so someone who sold a home years ago may qualify for those. Ontario's refund requires that you've never owned a home. Don't assume you qualify for one because you qualify for the other.
How to claim
- At closing (most common): your real estate lawyer claims the refund when registering the transfer electronically. The tax payable is reduced right then, so you never pay it out of pocket.
- Later, by application: if it wasn't claimed at registration, you can apply to the Ontario Ministry of Finance within 18 months of the transfer date.
Tell your lawyer early that you're a first-time buyer, so they can confirm your eligibility and reflect the refund in your closing costs estimate.
Why London buyers save twice
In Toronto, buyers pay both the Ontario tax and Toronto's Municipal Land Transfer Tax, which has its own separate first-time buyer rebate. In London there's only the provincial tax, so your total land transfer cost is roughly half what you'd pay on the same price in Toronto. Our sister site London vs Toronto has a side-by-side calculation.
Two common situations
"I inherited part of a cottage. Do I still qualify?" Possibly not, because owning an interest in a home anywhere can disqualify you. Ask your lawyer to review your history before you count on the refund.
"We're buying a new build. Does it apply?" Yes. The refund applies to both new and resale homes, as long as you meet the conditions.
Budgeting tip
Even with the refund, land transfer tax is due at closing, along with legal fees and other costs. Lenders typically expect you to have closing costs covered on top of your down payment. Build the net amount into your savings plan.