First-Time Homebuyer Rebate for Couples

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First-Time Homebuyers qualify for a rebate on Land Transfer Tax up to $4,000 ($8,000 in Toronto).

The Criteria is:

• You must be at least 18 years old.
• You must be a Canadian Citizen or Permanent Resident.
• You must occupy the home as your principal residence within 9 months.
• You cannot have owned a home, or an interest in a home, anywhere in the world.
• If you have a spouse, they must not have owned a home, or an interest in a home, while being your spouse.

Pretty straight forward.

But what about when a couple purchases a home together, and only one person meets the criteria?

Consider this:

My partner and I are buying a home together.
I have previously owned a home, but they have not.
How is the first‑time homebuyers rebate calculated?

It depends if they're considered Spouses.

If they are spouses: the partner who never owned a home can claim the full refund of $4,000 ($8,000 in Toronto), as long as the one who did own a home, did not own it while they were each other's spouse.

Now, if one partner owned a home at any point while they were spouses of each other, then neither qualify for a rebate, even if they did not live in the house together.

If they are not spouses: the partner who never owned a home can claim the refund based on the % of the home they're acquiring. Meaning, if they own the home as Joint Tenants, they would qualify for 50% of the maximum rebate - $2,000 ($4,000 in Toronto).

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For clarity, Spouses are defined as either:

• two persons who are married to each other, or
• two persons who are not married to each other and have cohabited,
  • continuously for a period of not less than 3 years, or
  • in a relationship of some permanence, if they are the natural or adoptive parents of a child.

And remember, Toronto has Municipal Land Transfer Tax so the tax payable and potential rebates are doubled.