If you are buying your first home in Ontario, there are a handful of programs that can put real money back in your pocket. Most of them are claimed automatically at closing if you qualify. But you have to know they exist to make sure your lawyer applies them.
Ontario Land Transfer Tax Rebate
This is the biggest one for most first-time buyers in Ontario. Eligible buyers can claim up to $4,000 against provincial Land Transfer Tax. On a home priced around $368,000 or less, the rebate cancels the LTT entirely.
To qualify you must:
- Be at least 18 years old
- Be a Canadian citizen or permanent resident
- Never have owned a home anywhere in the world
- Not be married to someone who owned a home while you were spouses
- Move into the home as your principal residence within nine months of closing
Your lawyer applies the rebate as part of the registration on closing day. You do not pay LTT and claim it later.
Toronto Municipal Land Transfer Tax Rebate
If you are buying inside the City of Toronto, you pay the municipal LTT on top of the provincial LTT. The first-time buyer rebate against the municipal portion is up to $4,475. Also applied at closing.
Federal Home Buyers' Plan (HBP)
The HBP lets first-time buyers withdraw up to $60,000 from an RRSP tax-free to put toward a home (or $120,000 for a couple, $60,000 each). The withdrawal has to be repaid to the RRSP over 15 years starting in the second year after the withdrawal. Missed repayments are added back to your income for that year.
The HBP is administered by CRA, not your lawyer. Your bank handles the RRSP withdrawal and gives you the paperwork.
Federal Home Buyers' Tax Credit
A non-refundable tax credit on your T1. It works out to up to $1,500 back at tax time for qualifying first-time buyers. You claim it on Schedule 1 of your tax return for the year you bought the home.
Bill C-4 GST Rebate (Proposed)
If Parliament passes Bill C-4 and the Governor General gives Royal Assent, first-time buyers of newly constructed homes under $1.5 million may be eligible for a rebate of up to $50,000 of federal GST. As of early 2026 this is not yet law. We covered the timeline in detail in our Bill C-4 update.
What You Need to Bring to Your Lawyer
For the LTT rebates, your lawyer needs:
- Confirmation you and any co-buyers meet the eligibility criteria (we'll ask)
- Your social insurance number for any required filings
- Proof you'll be moving in as a principal residence
For the HBP, your lender or RRSP issuer handles the paperwork directly. We'll confirm timing so your withdrawal aligns with closing.
If you're a first-time buyer working through an offer, get a free quote. Every quote we send to a first-time buyer breaks out exactly which rebates apply to your situation.