First Time Home Buyer Land Transfer Tax 2020

What is land transfer tax?

When buying a home, many people overlook the significant cost of land transfer tax. Almost always, the land transfer tax forms the largest portion of your closing costs. But if you are a First Time Home Buyer, you may be in luck as certain provinces, like Ontario, Quebec, BC and PEI, offer rebates to help you save money on the purchase of your first home.

Our calculator shows you how much you can expect to pay and why. If you are a first-time home buyer, we show you how much you can expect to save in government-sponsored rebates, reducing the impact of your land transfer fees.

First Time Home Buyer Land Transfer Tax Calculator

attach_money
Rest of Ontario
Total Tax$2,475.00
add_circleProvincial$6,475.00
remove_circleRebate$4,000.00
money
Save over $10,000 on your mortgage.
2.08%*5-Year Fixed

Lower than the Major Banks

2.59%
2.57%
2.37%
2.59%

* For mortgages of at least $500,000 with down payment under 20%.
WOWA assumes no liability for the accuracy of information presented.
† For mortgages of at least $500,000 over a 25-year amortization period.

Provincial Land Transfer Tax Calculators

Ontario Land  Transfer TaxOntario
British Columbia Property  Transfer TaxBritish Columbia
Québec Land  Transfer TaxQuébec

Am I a first-time home-buyer?

Each province has their own definitions of a First-Time Home Buyer. Generally:

  • You must be at least 18 years of age.
  • You must be a Canadian citizen or permanent resident.
  • You must occupy the property as your principal residence.
  • You cannot have owned a home, or a stake in a home, anywhere in the world, at any time.
  • Your spouse/common-law partner cannot have owned a home while they were your partner.

How do I claim the refund?

You may claim an immediate refund (or exemption from the tax) at the time of registration.

I did not claim a rebate at the time of registration. Am I still eligible?

Yes. You may have up to an 18 month period after the registration of your new home to apply for a refund.

Can I get a rebate if I am not a citizen or permanent resident of Canada?

Yes, in certain cases. After the purchase of a property, you have an 18-month window following registration to obtain a rebate. If you gain citizenship or permanent residency during this period, you can claim the full rebate amount.

Detailed Breakdown

Municipal Land Transfer Tax

Toronto is the only city in Ontario that levies a municipal land transfer tax. According to your selections, municipal land transfer tax does not apply to you. More information.

Ontario Land Transfer Tax

Ontario levies a land transfer tax by applying a tax-bracket system to your property’s purchase price. The full breakdown of your provincial land transfer tax is shown below.

Tax BracketMarginal Tax RateMarginal Purchase PriceMarginal Tax
First $55,00055k0.5%×$55,00055k=$275275
$55,00055k to $250,000250k1.0%×$195,000195k=$1,9501.95k
$250,000250k to $400,000400k1.5%×$150,000150k=$2,2502.25k
$400,000400k to $2,000,0002.00m2.0%×$100,000100k=$2,0002.00k
Over $2,000,0002.00m2.5%×$00=$00
Total Tax$6,4756.48k

Ontario offers a land transfer tax refund of up to $4,000 for first-time home buyers. Since your provincial tax exceeds the rebate limit, your provincial rebate is capped at $4,000.

Provincial Land Transfer Tax Rebates Info

British Columbia

BC requires its home buyers to pay a Property Transfer Tax (PTT) when purchasing a new home. The tax is valued at:

  • 1% on the first $200,000
  • 2% on the balance up to and including $2,000,000
  • 3% on the balance greater than $2,000,000
  • If the property is residential, a further 2% on the portion greater than $3,000,000

There are several conditions that would allow you to be exempt from this tax. Foregin buyers have to pay an additional 15% of the tax.

If you are a first-time home buyer, British Columbia offers a land transfer tax refund for properties worth below $500,000. The refund covers the full tax amount if your asking price is $475,000 or below. Otherwise, the refund is partial.

For more information, see the official regulations.

Québec

Quebec charges a Land Transfer Tax called the Welcome Tax that is different for Montreal but the same for the rest of Quebec. It increases to up to 1.5% for property valued over $258,600 and for Montreal increases up to 3.0% for property valued over $2,000,000.

The rates above are accurate for fiscal year 2020. You are exempt from the land transfer tax if your property is worth under $5,000, or if you are transferring the property to an immediate family member.

The Montreal Home Ownership Program provides financial assistance to first-time home buyers amongst other tax-exemption possibilities. You may qualify for both a land transfer tax rebate as well as a lump-sum subsidy when purchasing your first home in Montreal. For your convenience, we have provided the table below.

Home-Buyer Requirements Eligible Property Values Lump-Sum Payment Welcome Tax Refund
Single Buyer without Children Under $200,000 $2250
Household without Children (More than one buyer) Under $250,000 $2250
Households with minimum one child under 18 Under $280,000 (Increases up to $360,000 if property has more than 3 bedrooms)$5,000 (Increases up to $6,250 if property has living spaces of more than 1033 square feet) 100%
Households who already bought property prior to 2018 and has at least one child under 18Under $360,000 (Must have more than three bedrooms) 100%

Prince Edward Island

Prince Edward Island charges a land transfer tax equal to 1% of your purchase price. You are exempt from the tax if:

  • Your asking price is below $30,000, or
  • you are a first-time home buyer and your asking price is below $200,000.

This calculator is provided for general information purposes only. WOWA does not guarantee the accuracy of information shown, and is not responsible for any consequences of the use of the calculator.
* Rates shown are on approved credit and subject to change without notice.