Ontario First-time Home Buyers to Get $4,000 Land Transfer Rebate

Wednesday Aug 30th, 2017

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Great news for first-time home buyers in Ontario! The provincial government announced earlier this week that they will double the first-time homebuyers’ maximum Land Transfer Tax refund to $4,000. 

This increased rebate will take effect January 1, 2017, and will mean that eligible home buyers in Ontario will not pay Land Transfer Tax on the first $368,000 of their home’s purchase price.

The current land transfer tax rates and their brackets haven’t changed since 1989:

Outgoing Ontario Land Transfer Tax Rates
Home Purchase Price & Tax Rate
Up to $55,000 - 0.5%
$55,000 to $250,000 - 1.0%
$250,000 to $400,000 - 1.5%
Above $400,000 - 2.0%

When these price brackets were first created, the Ontario housing market was very different than today – way back when, $400,000 was considered the starting point for a luxury property. These days, $400,000 doesn’t go as far in Ontario.

Under the new modernized land transfer rates, buyers of detached or semi-detached homes, condos or townhomes should expect to pay the following:

Modernized Ontario Land Transfer Tax Rates
Home Purchase Price & Tax 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 million - 2.0%
$2 million and over - 2.5%

Keep in mind, though, that buyers of multi-residential buildings (i.e. triplexes), commercial, industrial or agricultural properties will be required to pay 2% tax rate on any purchase price over $400,000.

The modernization of Ontario’s land transfer tax rates is certainly great news for first-time home buyers. If you or someone you know is looking to purchase their first home in Mississauga or the Greater Toronto Area, I can help.

As an experienced realtor, I’ve had the pleasure of helping many buyers make their real estate dreams come true. To be set up on a personalized home search or to learn more about my home buyer services, please feel free to contact me. It would be my pleasure to assist you.


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