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Buying a Home in Ontario: First-Time Buyer Refunds, Costs and Steps

Updated

Buying a home in Ontario costs more up front than in most provinces, mostly because of land transfer tax, and in the City of Toronto that tax is charged twice. This page covers what is specific to Ontario: the provincial first-time buyer refund and who qualifies for it, Toronto’s municipal tax, the checks that matter for Ontario condos, and the new-home rebates. The national programs (the FHSA, the Home Buyers’ Plan and the federal tax credit) are the same in every province and are covered in the first-time home buyer guide.

Ontario’s land transfer tax refund for first-time buyers

Ontario refunds up to $4,000 of provincial land transfer tax to a first-time buyer, so a qualifying buyer pays no provincial tax on the first $368,000 of the price. Above that, the tax is owed on the rest. The Ontario land transfer tax calculator shows the tax and the refund for any price.

To qualify, according to the Ontario Ministry of Finance:

  • You must be at least 18.
  • You can never have owned a home, or an interest in one, anywhere in the world.
  • If you have a spouse, your spouse can't have owned a home, or an interest in one, anywhere in the world while being your spouse.
  • You must move in as your principal residence within 9 months of the transfer.
  • You must be a Canadian citizen or permanent resident, or become one within 18 months of the transfer to claim the refund then.
  • If a co-buyer isn't a first-time buyer, the refund is limited to the share of the home bought by the buyers who qualify.

A spouse who owned a home only before the relationship doesn’t reduce the refund.

Toronto’s second land transfer tax

A home inside the City of Toronto also pays Toronto’s municipal land transfer tax, with rates that match the provincial ones up to $3 million (and are higher above that) and a separate first-time buyer rebate. The Toronto land transfer tax calculator adds both taxes and both rebates. Neighbouring cities such as Mississauga, Brampton and Markham charge only the provincial tax.

Other closing costs

Land transfer tax is usually the largest closing cost, followed by legal fees, title insurance and adjustments for property tax the seller prepaid. The Ontario closing cost calculator totals them. Mortgage default insurance premiums (for down payments under 20%) are subject to Ontario’s retail sales tax, which is paid at closing and can’t be added to the mortgage; see PST on mortgage insurance.

Buying an Ontario condo

For a resale condo, your lawyer should review the building’s status certificate before your offer goes firm: it shows the reserve fund, special assessments and any legal claims against the corporation. The corporation can charge up to $100, including taxes and materials, and must offer delivery within 10 days at that price. See the status certificate in Ontario for what to look for.

Buying a new home in Ontario

New homes in Ontario come with a Tarion warranty, and first-time buyers can claim the federal First-Time Home Buyers’ GST/HST rebate on the federal part of the HST. Ontario’s own new housing rebate on the provincial part is up to $24,000. For agreements with a builder signed between April 1, 2026 and March 31, 2027, a temporary enhanced rebate for a home you’ll live in (open to repeat buyers too) raises the provincial relief to as much as $80,000. The GST/HST new housing rebate guide covers who qualifies, and buying pre-construction covers deposits and the warranty.

Where to look in Ontario

Down payment and mortgage

The minimum down payment and the mortgage stress test are federal rules and the same in every province: see the down payment calculator and Ontario mortgage rates. The Home Buyers’ Plan, the FHSA and the first-time home buyers’ tax credit can all go toward an Ontario purchase.

Sources

The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and September 29, 2026. How we check facts.