Buying a home in Ontario: land transfer tax, rebates and first-time buyer help

Land transfer tax or registration fees in Ontario, worked examples, first-time buyer relief, federal help (FHSA, HBP) and down payment rules.

The big picture: what buying costs beyond the price

Buying a home involves a down payment, closing costs and then your mortgage payments. Closing costs are paid on the day you take possession and usually include a land transfer tax (or registration fees), your lawyer or notary, title insurance, adjustments for property taxes and utilities already paid by the seller, and a home inspection if you ordered one. Plan for them in cash: they cannot be added to a regular mortgage.

Land transfer tax and fees in Ontario

Ontario charges a land transfer tax on every purchase, paid at closing through your lawyer. It is marginal: each rate applies only to the part of the price inside its band.

Part of the price	Rate
Up to $55,000	0.5%
Over $55,000 up to $250,000	1%
Over $250,000 up to $400,000	1.5%
Over $400,000 up to $2,000,000	2%
Over $2,000,000	2.5%

The 2.5% rate above $2,000,000 applies only to land with one or two single-family residences.

Purchase price	Tax before relief	First-time buyer relief	You pay
$400,000	$4,475	–	$4,475
$600,000	$8,475	–	$8,475
$800,000	$12,475	–	$12,475

First-time buyer refund

Up to $4,000 refunded: no tax at all on the first $368,000 for an eligible home, and a maximum refund of $4,000 above that.
You must be 18 or older, have never owned a home anywhere in the world (nor your spouse while you were spouses), be a Canadian citizen or permanent resident, and occupy the home as your principal residence within nine months.
Apply within 18 months of registration. Your lawyer usually applies at closing.
Two buyers who are not spouses each claim a share based on their interest in the home.

Toronto: a second tax

Inside the City of Toronto you also pay a municipal land transfer tax (MLTT) on top of the provincial tax. Up to $2,000,000 it uses the same rates, so the total is double. Since April 1, 2026, homes with one or two single-family residences worth more than $3,000,000 pay higher graduated municipal rates. First-time buyers get an extra refund of up to $4,475.

Toronto MLTT: part of the price (one or two single-family residences)	Rate
Up to $55,000	0.5%
Over $55,000 up to $250,000	1%
Over $250,000 up to $400,000	1.5%
Over $400,000 up to $2,000,000	2%
Over $2,000,000 up to $3,000,000	2.5%
Over $3,000,000 up to $4,000,000	4.4%
Over $4,000,000 up to $5,000,000	5.45%
Over $5,000,000 up to $10,000,000	6.5%
Over $10,000,000 up to $20,000,000	7.55%
Over $20,000,000	8.6%

Purchase price	Tax before relief	First-time buyer relief	You pay
$600,000	$16,950	–	$16,950
$1,500,000	$52,950	–	$52,950
$4,000,000	$191,950	–	$191,950

Source: City of Toronto: Municipal Land Transfer Tax rates ↗, read on 2026-11-13.

Also good to know

The Non-Resident Speculation Tax is 25% of the price for foreign nationals and foreign corporations buying residential property anywhere in Ontario.
New homes carry HST, but buyers of a new home for their own use may get a rebate of up to $24,000 of the provincial portion (8%).

Source: Ontario: calculating land transfer tax ↗, read on 2026-11-13.

Source: Ontario: first-time homebuyer refund ↗, read on 2026-11-13.

Calculate your own case

Use the land transfer tax calculator with your price, and the mortgage calculator to see your monthly payment.

Federal help for first-time buyers

First Home Savings Account (FHSA): contributions are deductible like an RRSP and withdrawals to buy a first home are tax-free. You get $8,000 of room in the year you open your first account (lifetime limit $40,000). CRA page ↗
Home Buyers’ Plan (HBP): withdraw up to $60,000 from your RRSPs to buy a home and repay it over time without tax on the withdrawal. CRA page ↗
First-time home buyers’ GST/HST rebate on new homes: the GST is eliminated on a new home up to $1,000,000 and reduced between $1,000,000 and $1,500,000, saving up to $50,000. It generally applies to agreements of purchase and sale signed on or after March 20, 2025 and before 2031 (Bill C-4, Royal Assent March 12, 2026). Finance Canada ↗
Home Buyers’ Amount: a non-refundable tax credit based on up to $10,000 (so up to $1,500 of tax) when you buy a qualifying home. CRA page ↗

Down payment and insured mortgages

If you put down less than 20%, your mortgage must be insured (CMHC, Sagen or Canada Guaranty) and the premium is added to the mortgage. The minimum down payment is 5% of the first $500,000 of the price and 10% of the part between $500,000 and $1,500,000; homes above $1,500,000 require 20% down. First-time buyers and buyers of new homes can choose a 30-year amortization on an insured mortgage. The $1,500,000 cap and the 30-year amortization came into force on December 15, 2024 (Finance Canada release below); confirm the current terms with your lender.

Source: Finance Canada: mortgage reforms in force December 15, 2024 ↗, read on 2026-11-13.

Government platforms and next steps

Open an FHSA at your bank and start saving, if you have not already.
Get a mortgage pre-approval and calculate your closing costs with the calculators above.
Hire a lawyer (or notary) before you sign: they check the title, collect the tax and register the deed.
Claim your federal Home Buyers’ Amount on your next tax return.

All programs and benefits →