First-Time Home Buyer Land Transfer Tax Rebates Across Canada

Buying your first home in Canada comes with a whirlwind of emotions — excitement, anxiety, and lots of paperwork. One of the bigger costs that often catches first-time homebuyers off guard is the land transfer tax. But here’s some good news: if you’re a first-time buyer in certain provinces, you may be eligible for a rebate that puts thousands of dollars back in your pocket.

Let’s break it all down — province by province.

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What Is the Land Transfer Tax?

The land transfer tax (sometimes called the property transfer tax or welcome tax) is a fee you pay when you take legal ownership of a property. It’s a percentage of the home’s purchase price and must be paid upfront, often on closing day. While it may seem like just another line item, it can cost you thousands — especially in hot housing markets.

To help first-time homebuyers, some provinces and even cities offer rebates to offset this cost.

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Where Are Land Transfer Tax Rebates Available?

As of now, land transfer tax rebates are offered in:

• Ontario
• Toronto (in addition to Ontario’s)
• British Columbia
• Prince Edward Island

Here’s a quick comparison of the rebate amounts and eligibility thresholds:

Region	Max Refund	Home Price Limits
Ontario	$4,000	Full refund up to $368,000
Toronto (municipal)	$4,475	Full refund up to $400,000
British Columbia	$8,000	Full refund up to $500,000
Prince Edward Island	$2,000	Full refund up to $200,000

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Ontario Land Transfer Tax Refund

Ontario offers up to $4,000 in rebates for first-time buyers. To qualify, you must:

• Be at least 18 years old
• Have never owned a home or an interest in a home anywhere in the world
• Ensure your spouse has also never owned a home while being your spouse
• Occupy the home as your principal residence within 9 months
• Be a Canadian citizen or permanent resident (or become one within 18 months)
• Apply within 18 months of registering the property

If your home costs less than $368,000, you’ll get the full refund. If it’s more than that, you’ll get a partial refund.

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Toronto Municipal Land Transfer Tax Rebate

Toronto has its own land transfer tax and rebate program on top of Ontario’s. You can claim up to $4,475 as a first-time buyer. The eligibility criteria are almost identical to Ontario’s:

• At least 18 years old
• You (and your spouse) have never owned a home
• Must live in the home within 9 months
• Must be a Canadian citizen or permanent resident
• Application must be made within 18 months

Good news: you can receive both the Ontario and Toronto rebates, potentially saving you more than $8,000.

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British Columbia Property Transfer Tax Refund

B.C. offers one of the most generous rebates — up to $8,000 — under its First Time Home Buyers’ Program. To qualify:

• Must be a Canadian citizen or permanent resident (or become one within 18 months)
• Lived in B.C. for 12 months consecutively, or filed at least two B.C. tax returns in the last 6 years
• Never owned a home or interest in a principal residence anywhere
• Never received a B.C. first-time buyer exemption before

You’ll get the full refund if your home is $500,000 or less, and a partial rebate for homes priced between $500,000–$525,000.

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Prince Edward Island Real Property Transfer Tax Exemption

In PEI, eligible first-time buyers can receive an exemption of up to $2,000. Here’s what’s needed:

• At least 18 years old
• Be a Canadian citizen or permanent resident (or become one within 18 months)
• Lived in PEI for six months consecutively before registering the property or filed two PEI tax returns in the past 6 years
• Never owned a principal residence or received a first-time exemption before

To qualify for the full exemption, your home must cost $200,000 or less. Higher purchase prices may still allow for partial rebates.

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Don’t Leave Money on the Table

First-time homebuyers often face steep upfront costs — from down payments to closing fees. Land transfer taxes can quietly eat into your budget, but these rebates can help soften the blow.

The key is to check your provincial guidelines carefully, make sure you apply on time, and provide all necessary documentation. Even if you don’t qualify for the full amount, a partial refund could still save you thousands.

If you’re unsure, speak to your mortgage broker or legal representative before closing. A little paperwork now could mean a lot of savings later.

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Final Thoughts

Buying your first home is hard enough without navigating surprise fees. So if your province offers a break, don’t hesitate to take it. These land transfer tax rebates are meant to help you get started on solid ground — literally.

And remember: every dollar saved is another step closer to making that house your home.

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