First-Time Homebuyer or Not?

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When you ask someone, “Are you a first-time homebuyer?”, most think it simply means, “Is this your first time buying a property?”

Generally, the reason this question gets asked is to determine eligibility for the First-Time Homebuyer (FTHB) Land Transfer Tax Rebate.

The rules, however, are a little more complicated than that.

Some assume they qualify automatically, while others don’t realize their spouse’s past homeownership could disqualify them.

Let’s break it down so you can guide your clients with confidence.

Who Qualifies for the Rebate?

To be eligible, a buyer must meet all of the following:

✔ At least 18 years old

✔ Canadian citizen or permanent resident

✔ Never owned a home anywhere in the world

✔ If married or common-law, their spouse must also have never owned a home while they were together

✔ Must move into the home as their principal residence within 9 months of closing

How Much is the Rebate Worth?

• Ontario LTT rebate: Up to $4,000
• Toronto LTT rebate (if applicable): Up to $4,475

How Do Buyers Claim It?

The buyer’s lawyer will include the necessary statements in the closing documents, applying the rebate to reduce or eliminate the Land Transfer Tax (LTT) payable at closing.

If the rebate wasn’t applied at closing—whether due to oversight or a late qualification—the buyer can submit a refund application afterward. This must be done within 18 months of closing.

FAQs