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.
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
- Up to $4,000 in Ontario (provincial rebate)
- Up to $4,475 in Toronto (municipal rebate)
- Up to $8,000 in British Columbia
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
- Land Transfer Tax
- Closing Costs
- Principal Residence
- First-Time Buyer
- Eligibility Criteria
The Vic Towns project at 1682 Victoria Park Avenue Inc. (Solotex Group)
holborn.ca
