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First-Time Homebuyer Rebate

Learn how the First-Time Homebuyer Rebate works in Canada, what it covers, who qualifies, and how it helps reduce closing expenses.

First-Time Homebuyer Rebate

May 22, 2025


What the First-Time Homebuyer Rebate?

The First-Time Homebuyer Rebate is a government program that provides financial relief to eligible buyers by refunding all or part of the land transfer tax paid at closing.

Why does the First-Time Homebuyer Rebate Matter in Real Estate?

In Canada, first-time buyers often face high entry costs. This rebate lowers one of the major closing expenses and is available at both the federal and provincial levels (e.g., Ontario, British Columbia).

Eligibility generally requires:
  • Buyer has never owned property anywhere in the world
  • Property is used as a principal residence
  • Buyer is a Canadian citizen or permanent resident
Benefits may include:
  • Up to $4,000 in Ontario (provincial rebate)
  • Up to $4,475 in Toronto (municipal rebate)
  • Up to $8,000 in British Columbia
Buyers must apply during or shortly after closing. It does not affect mortgage qualification but can reduce the cash needed upfront.
Understanding the rebate helps first-time buyers plan their finances and lower the initial barrier to homeownership.

Example of the First-Time Homebuyer Rebate in Action

A first-time buyer in Toronto receives a total rebate of $8,475 — covering both provincial and municipal land transfer tax portions.

Key Takeaways

  • Reduces land transfer tax for first-time buyers.
  • Offered provincially and municipally.
  • Requires specific eligibility.
  • Must apply at or after closing.
  • Eases upfront purchase costs.

Related Terms

Additional Terms

Rent Control

Rent control refers to government regulations that limit how much landlords can increase rent for residential tenants each year.. more

Receivership

Receivership is a legal process where a court or secured creditor appoints a receiver to take control of a borrower’s assets, such as property or. more

REALTOR

A REALTOR is a licensed real estate professional who is a member of the Canadian Real Estate Association (CREA) and adheres to its Code of Ethics and. more

Property Use History

Property use history refers to the documented past uses, functions, and occupancy of a property, which may affect environmental risk, zoning, or. more

Property Management

Property management is the oversight and administration of real estate assets on behalf of the owner, covering leasing, maintenance, financial. more

Property Maintenance

Property maintenance refers to the ongoing upkeep, repair, and management of a building or land to preserve its safety, functionality, and appearance.. more

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