Are you Considered a First Time Home Buyer?

Ontario First-Time Home Buyer Land Transfer Tax Credit: Up to $4,000, Toronto Up To $4475

Ontario offers a land transfer tax credit of up to $4,000 for first-time homebuyers who are Canadian citizens or permanent residents purchasing an eligible residential property. This credit applies whether you're buying a new or resale home.

Who Qualifies for the Credit?

To qualify for the credit, you and your spouse must both be first-time homebuyers. You are considered a first-time homebuyer if you have never owned a home anywhere in the world. This includes properties transferred into your name, even if they were sold before.

If your spouse has owned a home in the past and didn’t sell it before you got married or became common-law partners, you won’t qualify for the credit.

Definition of "Spouse" for Tax Purposes

In Ontario, a spouse includes:

A married couple
A common-law couple living together for 3+ years
A common-law couple with a child together

How the Credit Works

Maximum Credit: If you’re a first-time homebuyer, you can receive a maximum credit of $4,000. If you’re buying with another first-time homebuyer, the credit is not doubled—it’s still $4,000 in total, shared between both buyers. If the land transfer tax is less than $4,000, the credit is limited to the tax amount.

Property Use and Occupancy Requirements

To qualify, you must occupy the home within 9 months of closing. If you buy the home for investment purposes (i.e., you don’t intend to live there), you’re not eligible for the credit.

How Joint Ownership Affects the Credit

If you buy a property with a non-first-time homebuyer, your credit is reduced based on your ownership share.
Joint tenants (50/50 ownership) will receive $2,000 if only one spouse is a first-time homebuyer.
Tenants-in-common (different ownership percentages) will receive a credit based on their share of ownership.

Once You’ve Used the Credit

Once you’ve claimed the credit, you can’t claim it again, even if years have passed. You’re also not eligible for the credit if you’ve already owned a home, regardless of whether you received the credit previously.

Contact Us for Help

Have questions about your eligibility or need assistance with your first-time homebuyer credit? Contact us for expert help with Ontario residential real estate and land transfer tax matters. You may email us at office@ganganilaw.com or call us at 416-299-0050 to speak to one of our lawyers.