Buying your first home in Ontario
Ontario is the one place in Canada where a first-time buyer can face land transfer tax twice over — once to the province, and again to the city if you're buying in Toronto. Here's exactly how that works, the rebates that offset it, and the rest of the local picture.
Toronto's land transfer tax, twice over
Toronto is the only city in Canada with its own municipal land transfer tax stacked on top of the provincial one, meaning buyers in Toronto pay double the LTT of buyers elsewhere in Ontario. A 25% Non-Resident Speculation Tax (NRST) also applies to foreign buyers across the province.
If buying in Toronto, budget for both the provincial AND the municipal land transfer tax — combined they can add $20,000+ to closing costs on a million-dollar home. First-time buyers should claim both rebates through their lawyer at closing — don't forget to ask.
The rebates that claw some of it back
First-time buyer land transfer tax rebate
Up to $4,000 provincial rebate (eliminates LTT on homes up to $368,333). Toronto buyers also get up to $4,475 municipal rebate on Toronto's parallel LTT — combined saving of up to $8,475 in Toronto.
These rebates aren't automatic — your lawyer claims them at closing, so confirm you're eligible and ask for both (provincial and, in Toronto, municipal). Outside Toronto there's only the provincial land transfer tax, so the total bill is roughly half.
Insurance and what happens if you fall behind
Home insurance in Ontario averages about $1,380 a year — close to the national average of $1,340. Your lender will require it before closing even though no law makes it mandatory. For how flood and other cover works in Canada, see the Canadian home insurance guide.
If payments are ever missed, Ontario lenders typically enforce through power of sale, which usually takes around 4 months — faster than the court-driven process in some provinces, so act early if you hit trouble.
General overview only — laws and tax rules change. Confirm the details with your lawyer or a qualified adviser before relying on them.
Programs worth knowing
- Ontario LTT First-Time Homebuyer Refund (up to $4,000)
- Toronto Municipal LTT Rebate (up to $4,475 — Toronto only)
- CMHC mortgage insurance (federal, mandatory <20% down)
- FHSA — First Home Savings Account (federal)
- Home Buyers' Plan — RRSP withdrawal up to $60,000 (federal)
The federal FHSA and the RRSP Home Buyers' Plan stack with the provincial rebates — worth reading up on both, since together they meaningfully change how much you need saved. See the FHSA guide and the Home Buyers' Plan guide.
Run your own numbers
The Ontario mortgage calculator uses live Bank of Canada rates and semi-annual compounding, with an Ontario property-tax estimate built in — so you can see the monthly payment while you budget separately for the one-time land transfer tax.
This page is general educational information to help you think it through — not financial, tax, or legal advice. Your own situation is unique; consider speaking with a qualified adviser before making a big decision. See how we calculate and our Privacy Policy.